Young adults are the group most likely to have made changes to their KiwiSaver accounts in the past year, according to research for ANZ Investments.
“Gen Z are investors; they understand this is about growing their wealth and they’ve started early, many are regularly contributing to a KiwiSaver account, which is great to see,” says Fiona Mackenzie, Managing Director of ANZ Investments.
“The youngest members of Gen Z are in their early teens but the oldest are studying and working, many of them well into a career.
“For those that are working many are on contract or freelancing. That offers opportunities and challenges – particularly given the higher cost of living.”
Using the age group 18 to 24 as a proxy for Gen Z, the survey by Horizon Research found that:
· 25 per cent had increased their contribution level in the previous twelve months,
· 12 per cent had reduced their contributions,
· 14 per cent stopped their contributions,
· 26 per cent had made additional voluntary contributions,
· 23 per cent changed KiwiSaver provider,
· 10 per cent changed fund/investment type,
· and 9 per cent had withdrawn funds to purchase their first home.
The Horizon survey also asked KiwiSaver members whether the fall in financial markets had left them more or less likely to invest.
28 per cent of 18 to 24-year-olds said they were less likely to invest. This compared to 20 per cent of all KiwiSaver members.
However, 26 per cent of the 18 to 24-year-olds said the fall in financial markets had left them feeling more likely to invest, compared to 10 per cent of all KiwiSaver members who were surveyed.
“What leapt out at us was that 20 per cent of 18 to 24-year-olds said they were already wary of investing; and 24 per cent of all members said the same.
“This shows us KiwiSaver providers the importance of ongoing education about investing for the long term,” Ms Mackenzie says.