When it comes to investing, it pays to determine where your goalpost is. KiwiSaver is designed to help you achieve two main goals: saving for retirement or buying your first home. To make the most of your KiwiSaver, start with your goal and work backwards from there.

Define Your Goals

First Home Purchase: If your initial goal is to use your KiwiSaver funds for a first home, you need to tailor your investment accordingly. The timing of this purchase—whether in 3 months or 10 years—will dictate the best type of fund for you.

Retirement: You can access your KiwiSaver from age 65, but many people continue working and delay tapping into their KiwiSaver. While it's common advice to switch to a conservative fund in your 60s to protect your savings, this may not be the best strategy if you plan to start using your funds later - say in your 70s. It’s important to align your KiwiSaver investments with your personal retirement plans.

If you're nearing 65, think about whether you plan to keep working or when you’ll actually start withdrawing from your KiwiSaver. This will help you craft a plan that fits your unique situation.

Investment Timeframe & Risk Tolerance

Once you’ve set your goal, it’s time to figure out the timeframe for achieving it. For example, if you’re planning to buy a home in 5 years rather than this year, you have a longer timeframe for investing, allowing you to take on investments that might offer better returns over a longer period.

The same applies to retirement. If you have other sources of income and don't need your KiwiSaver right away, you can afford to take a longer-term view and possibly take on a bit more risk for potentially higher returns.

Other Important Considerations

Sometimes it’s not just about the money. Here are a few other things you might want to think about:

Ethical Investing: For some people, it’s important that their investments align with their values. Ethical investing usually means avoiding industries that have a negative social or environmental impact, like weapons production, tobacco, or factory farming.

New Zealand Owned & Operated: You might prefer to invest with a provider that is New Zealand-based. Supporting local businesses can lead to better outcomes for both our country and its people.

Transparency: It’s reassuring when your provider is open and transparent. Leading KiwiSaver providers keep you informed with regular updates, user-friendly apps, and online portals full of useful information. If you find your provider is difficult to get information from or doesn’t make it easy to see your investment details, it might be time to ask why.

How We Can Help

At MoneyGuide, we're here to help you get the most out of your KiwiSaver. We offer independent advice to ensure your investment is set up perfectly for your retirement or first home goals—all at no cost to you.

If you want our team to review your KiwiSaver and make sure it’s optimised for your needs, just fill out the form below. We’ll be in touch to help you make the most of your KiwiSaver journey!