If you're a KiwiSaver member, you may have wondered what exactly a KiwiSaver adviser does and whether their advice could benefit you. KiwiSaver can be a bit of a maze - there are so many providers, fund types, and options to choose from. That’s where a good adviser comes in. They help simplify the process, assist you in making informed decisions, and ensure your KiwiSaver is working for you.

Here’s a step-by-step breakdown of what a KiwiSaver adviser can do for you:

1. Understanding Your Needs and Goals

The first thing a KiwiSaver adviser will do is reach out to you for a chat. This is a crucial part of their role because they need to understand you, your financial goals, and your unique situation. Your age, stage in life, and personal circumstances all play a big role in determining your KiwiSaver strategy. The adviser will ask a series of questions to get a better sense of your needs, including:

• Investment goals and timeframe: Are you saving for your first home or for retirement, and when do you plan to start using your funds?

• Risk tolerance: How do you handle market fluctuations? Are you comfortable with higher risk for potentially higher returns, or do you prefer stability?

• Ethical investing: Do you want your investments to align with values such as sustainability or social responsibility?

• Current provider: What provider and fund are you with, and how satisfied are you with their performance?

2. Selecting a Provider and Fund

Once the adviser has gathered all this information, they’ll determine which fund type (such as Conservative, Balanced, or Growth) is best suited to your risk tolerance and investment timeline. The adviser will also consider your preferences around ethical investing, how long the fund has been around, and whether or not the provider is New Zealand owned.

After narrowing down the options, the adviser will compare KiwiSaver providers within the selected fund category. They will review the fund’s performance over the short, medium and long term to assess whether it has consistently delivered good returns. While past performance doesn’t guarantee future results, it is an important factor to consider.

3. Presenting the Best Options

Once the adviser has completed their research and analysis, they’ll present their findings to you. A good adviser will walk you through the options they’ve found and explain why they believe a particular fund is the best fit for you, based on your goals, risk tolerance, and preferences.

If you’re already with a solid provider and fund, the adviser may confirm that you’re on the right track and suggest becoming your nominated adviser at that provider in order to provide ongoing advice to keep you on course. An unbiased adviser can offer insights that your provider may not provide.

4. Regular Reviews and Ongoing Support

A key part of a good KiwiSaver adviser’s service is regular reviews. They’ll stay in touch with you over time to ensure you’re always in the right fund and that your provider remains competitive. As your needs evolve, your adviser will make adjustments to your strategy, ensuring that you’re on track to meet your long-term goals.

5. KiwiSaver Advice is Generally Free

One of the most appealing aspects of KiwiSaver advice is that it’s usually free to you, the consumer. KiwiSaver advisers are compensated by the KiwiSaver providers for the work they do in helping you choose the right fund. This payment is typically a small percentage of the fees you’re already paying under your provider’s management fees.

This means that, in most cases, you won’t incur any extra out-of-pocket costs for professional advice, yet you’ll have access to expert guidance that could improve your investment outcomes.

6. Conclusion: The Value of Professional Guidance

A good KiwiSaver adviser is there to simplify the often complex world of KiwiSaver, helping you make the best decisions for your financial future. From understanding your personal goals to comparing providers and fund types, an adviser removes the guesswork from the equation. Best of all, their services are often free, as they’re compensated by the providers.

Whether you're new to KiwiSaver or have been contributing for years, having expert guidance can make a significant difference. By working with a trustworthy adviser, you can ensure that your KiwiSaver is set up to meet your needs - whether you’re saving for your first home, retirement, or just looking to make your money work harder.

Reach out to our expert team at MoneyGuide to get connected with a KiwiSaver adviser and make sure you’re on the right track!