Market fall leaves younger people more likely to invest in KiwiSaver

Research into Gen Z’s investment habits shows the younger generation has made a good start to their KiwiSaver contributions, but ongoing education is needed around investing for the long term.

The Horizon Research survey of 1,632 respondents for ANZ Investments found young adults (born 1997–2012) were the age group most likely to have made changes to their KiwiSaver accounts in the past year.

Twenty-three per cent of respondents said they had changed KiwiSaver provider in the previous 12 months, while 10 per cent had changed their fund/investment type.

Meanwhile, 25 per cent had increased their contribution level and 26 per cent had made additional voluntary contributions.

But 12 per cent had reduced their contributions and a further 14 per cent stopped their contributions.

“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,” said Fiona Mackenzie, managing director of ANZ Investments (pictured).

The Horizon survey asked KiwiSaver members whether the fall in financial markets had left them more or less likely to invest.

Of those aged 18 to 24, 28 per cent said they were less likely to invest. This compared with 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,” Mackenzie said. “This shows us KiwiSaver providers the importance of ongoing education about investing for the long term.”