The council’s latest research report revealed how New Zealanders were investing during an economically turbulent year and, despite privacy remaining a key concern overall, there was a notable drop in the level of concern by some respondents.
In a statement, Mr Klipin said the research also reflected other concerns and trends that needed to be addressed, including the responses from 37.1% of those not investing in KiwiSaver who felt they did not need it, did not have confidence in it or found the system too confusing.
Despite significant media and public conversation about sustainable investing, New Zealanders had limited understanding or interest in ESG (environment, sustainable and governance) investments, 85% of respondents reporting they did not have any or were unsure if they did and 21% concerned at the risk of greenwashing.
Most New Zealanders were making risk-based decisions to safeguard their wealth.
Two-thirds looked to protect their wealth with more than half investing for the long term.
More preferred not to make investments with higher potential risk/returns and just 13% preferred to invest in alternatives and asset classes which were less available, such as cryptocurrencies.
Despite younger age groups having interest in cryptocurrency as an investment, most New Zealanders viewed it as a risky thing to invest in and not a viable alternative to traditional stock investing.
Recent reports in the media indicated there was even less appetite for investing in cryptocurrencies as the value of cryptocurrencies had continued to decline since the survey was undertaken, the report said.
Four in five New Zealanders were investing and the most popular investment types were KiwiSaver, cash and New Zealand shares.
Compared with last year’s report, about 13% more respondents were invested in KiwiSaver and less in cash, and there was also a drop in the number of respondents investing in cryptocurrencies.
The low take-up of sustainable investments was down to lack of interest and limited understanding on the one hand, and greenwashing, higher fees and lack of historical performance data on the other.
Despite a lack of take-up and awareness of ESG investments, the majority of respondents (57%) agreed it was up to individuals to ensure investments were good for the planet, just over half believing the Government and fund managers had a role to play to ensure investments were not harming the planet.
The 15% of respondents who did have ESG investments were driven to them for a range of reasons, the top three being that the investments were in line with personal values, a positive social impact or that they were part of an investment portfolio.
Ryan Bessemer, chief executive of the FSC’s research sponsor Trustees Executors, said financial literacy continued to be a top priority, respondents rating their understanding of concepts including risk and return, diversification and investing approaches and strategies lower than the year before.
