The idea of using some of the tax credits paid out to KiwiSaver members for those members to get financial advice originally came from the Institute of Financial Advisers.

Its concerns about the lack of advice on KiwiSaver were confirmed when a study found fewer than 20% of KiwiSaver members had used the services of a financial adviser.

PAA chief executive Edward Richards said his organisation would support some sort of government assistance to provide easier access to financial advice for those in KiwiSaver.

"I think the idea is worth considering, although whether the government would take it seriously in the current fiscal environment I'm not sure."

And he said the advice would be just as important for those not in KiwiSaver, many of whom have chosen not to enter because they think the government manages the scheme.

"People have got to realise if more people get financial advice on KiwiSaver more people will be in the scheme," he said.

Richards said many KiwiSaver members either can't afford financial advice or don't understand the value proposition of it; meanwhile, the way KiwiSaver has been set up means there's little money in for advisers.

With under 2000 AFAs nationwide it is doubtful there is the capacity in the industry to advise the nearly two million KiwiSaver members (not to mention non-members), but Richards said a subsidy could increase AFA numbers.

"It might encourage more people to become AFAs because then it will be worthwhile giving advice on KiwiSaver," he said.

"There's a certain number of advisers out there who won't give advice on KiwiSaver because there is not insignificant risk attached to it, and no return."