*Past performance is not necessarily indicative of future performance.
*List is of the highest 5-year returns A-rated funds as per our Investment Selection Process.
*All returns are per annum after fees and tax (28% PIR) as of the quarter ended 30th September 2024.
*Source: National Capital Research
We’re here to help find the best KiwiSaver fund for you. Our team are financial advisers specialising in KiwiSaver & Investment research. We provide free KiwiSaver advice, with the goal of empowering one million Kiwis to become financially secure.
By taking a few minutes of your time to complete our KiwiSaver HealthCheck questionnaire, you will receive an instant recommendation tailored specifically to your goals and beliefs.
Our system combines the latest figues and technology to provide the most suited recommendations. Nonetheless, whether you take us up on the advice, is completely up to you.
Here is a list of the current best-performing KiwiSaver funds in each KiwiSaver options category.
While choosing between KiwiSaver investment options involves considering multiple factors,
performance results are undoubtedly important.
|
Fund Type
|
Fund Name
|
5-Year Average
|
|---|---|---|
|
Conservative
|
Pathfinder Conservative
|
4.37%
|
|
Moderate
|
Generate Moderate
|
4.51%
|
|
Balanced
|
Pathfinder Balanced
|
7.79%
|
|
Growth
|
Pathfinder Growth
|
10.11%
|
|
High Growth
|
Milford Aggressive
|
11.29%
|
Your KiwiSaver Investment Options & KiwiSaver Funds
There is an overwhelming number of KiwiSaver providers and KiwiSaver funds to choose from. Furthermore, we know reading about all the different KiwiSaver funds and how they differ is one of those chores you’re inclined to put off as it’s not the most exciting weekend task.
To make life a little easier, we’ve put together some detailed information on the best KiwiSaver funds based on each category’s annual returns. The data is based on National Capital research from the quarterly fund reports. It helps paint a clearer picture on your KiwiSaver investment options based on the top-performing KiwiSaver funds.
Thus, allowing you to compare your own KiwiSaver provider against the top performers and market index for all KiwiSaver funds. You can compare by accessing your fund performance via your provider’s KiwiSaver login portal. Alternatively, we’re able to summarise this for you when you apply for your own Free KiwiSaver HealthCheck. Weighing up your KiwiSaver investment options has never been more accessible.
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Pathfinder Conservative Fund - Five Years Return to September 2024: 4.37% p.a.
Pathfinder Conservative Fund is an ethical portfolio with a higher exposure to income assets and a lower exposure to growth assets. This Fund’s value is unlikely to fluctuate as much as the Balanced or Growth Fund.
The chart below shows the annual returns of Pathfinder Conservative Fund compared to the Market Index. The average annual return of Pathfinder’s Conservative Fund since inception as of 31 Mar 2024 was 3.49%, whereas the average annual return on the market index is 2.41%. Making it a current top performer amongst other Conservative KiwiSaver options.
Looking at the asset allocation gives you an idea of what the fund invests in and the proportions. It is a good indicator for investors as asset allocation impacts the volatility, risk, and return of KiwiSaver funds.
As of March 2024, the actual asset allocation of Pathfinder Conservative Fund was as follows:
|
FEES
|
PATHFINDER CONSERVATIVE FUND
|
PEER GROUP - CONSERVATIVE FUND
|
|---|---|---|
|
Total Annual Fund Fees
|
0.88%
|
0.7%
|
If you’re in a conservative KiwiSaver fund, you prioritise stability and lower volatility over high returns. You are potentially aiming to withdraw from your KiwiSaver investment in the next couple of years for either your first home or retirement. In this case, you wouldn’t want to witness a sudden drop in your KiwiSaver investment when you’re finally ready to use your KiwiSaver funds.
Suppose you feel unsure about whether or not you should be in a conservative fund. We keep track of the latest KiwiSaver funds performance results so you don’t have to. Analysing the performance of all KiwiSaver investment options. By submitting a KiwiSaver HealthCheck, you’ll get personalised recommendations, so you don’t have to make the decision alone.
Generate Moderate Fund - Five Years Return to September 2024: 4.51% p.a.
Generate Moderate Fund aims to achieve over the long term a modest to moderate yearly return. This allows for modest to moderate movements of value up and down, including occasional negative yearly returns (after the fund charge and before tax). Thus being amongst the lower-risk KiwiSaver options.
The chart below shows the annual returns of the Generate Moderate Fund compared to the Market Index. The average annual return of the Generate Moderate Fund over ten years as of 31 Mar 2024 was 5.10%, whereas the latest annual return on the market index over last ten years is 5.99%.
As of March 2024, the actual asset allocation of Generate Moderate Fund was as follows:
|
FEES
|
GENERATE MODERATE FUND
|
PEER GROUP - MODERATE FUND
|
|---|---|---|
|
Total Annual Fund Fees
|
1.14%
|
0.96%
|
Fees are only one of the many factors to be considered when looking into KiwiSaver funds; therefore, don’t be deterred by Generate Moderate Fund higher than average fees. If you’re in a moderate fund, you most likely value the stability of your KiwiSaver investment rather than the level of returns. However, you’re willing to accept slightly more volatility than a conservative fund. You may be a few years away from withdrawing from your KiwiSaver investment.
If you’re unsure about whether you are making the most out of your KiwiSaver options, take our KiwiSaver HealthCheck. See what your KiwiSaver options are, and feel more confident in your investment.
Pathfinder Balanced Fund - Five Years Return to September 2024: 7.79% p.a.
Pathfinder Balanced Fund, is a diversified fund that primarily invests in equities, with a significant allocation to fixed interest securities.
The chart below shows the annual returns of Pathfinder KiwiSaver Balanced Fund compared to the collective KiwiSaver options Market Index. The average annual return of Pathfinder Balanced Fund since inception as of 31 March 2024 was 7.12%, whereas the average annual return on the market index is 6.98%.
As of March 2024, the actual asset allocation of Pathfinder KiwiSaver Balanced Fund was as follows:
|
FEES
|
PATHFINDER BALANCED FUND
|
PEER GROUP - BALANCED FUND
|
|---|---|---|
|
Total Annual Fund Fees
|
1.16%
|
1%
|
When considering your KiwiSaver options and investing in a Balanced fund, it is important to ensure that the assets in the fund will give you the stability and returns you want out of your KiwiSaver investment. As everyone has different goals, being in a KiwiSaver fund that aligns with your individual goals could save you thousands.
Have you picked the right one amongst all the KiwiSaver investment options out there? That is why we offer a Free KiwiSaver HealthCheck to bring to light the best KiwiSaver investment options for you.
Pathfinder Growth Fund - Five Years Return to September 2024: 10.11% p.a.
The Pathfinder Growth Fund is an ethical portfolio with a higher exposure to growth assets and a lower exposure to income assets. This Fund’s value is likely to fluctuate more than the Balanced and Conservative Fund.
The chart below shows the annual returns of Pathfinder Growth Fund compared to the Market Index. The average annual return of Pathfinder Growth Fund since inception as of 31 March 2024 was 9.93%, whereas the average annual return on the market index is 9.34%.
As of March 2024, the actual asset allocation of Pathfinder Growth Fund was as follows:
|
FEES
|
PATHFINDER GROWTH FUND
|
PEER GROUP - GROWTH FUND
|
|---|---|---|
|
Total Annual Fund Fees
|
1.29%
|
1.11%
|
If you’re in a KiwiSaver growth fund, you’re most likely ok with seeing volatility in the value of your KiwiSaver options and aren’t planning on withdrawing from it anytime soon. You’re generally more interested in returns but also know that it’s important not to get caught up in headline figures. Because past performance does not necessarily predict future performance, researching what your fund is actually invested in and how the fund provider chooses each asset is equally important.
National Capital is constantly reviewing and researching each of these aspects to help you choose wisely between all KiwiSaver investment options. As well as this, National Capital wants to make sure you are informed on what you should do if your circumstances or the circumstances of your provider change. That is why we keep up to date with the latest information on KiwiSaver investment options.
Milford Aggressive- Five Years Return to September 2024: 11.29% p.a.
The Milford Aggressive Fund aims to maximise capital growth after the base fund fee but before tax and before the performance fee, over the minimum recommended investment timeframe of ten years.
The chart below shows the annual returns of Milford Aggressive Fund compared to the Market Index. The average annual return of Milford Aggressive Fund since inception as of 31 Mar 2024 was 10.78%, whereas the average annual return on the market index is 10.71%.
As of March 2024, the actual asset allocation of Milford Aggressive Fund was as follows:
|
FEES
|
Milford Aggressive Fund
|
PEER GROUP - AGGRESSIVE FUND
|
|---|---|---|
|
Total Annual Fund Fees
|
1.15%
|
1.22%
|
As an aggressive KiwiSaver funds investor, not unlike a growth investor, you probably have a high tolerance and capacity for volatility. Length of time is an important factor when considering KiwiSaver investment options. You are able to withstand fluctuations in your KiwiSaver funds due to the fact you are investing for a longer period of time.
As with any fund, but importantly aggressive funds, the proportion of growth to income assets, where your money is invested, and who is actually managing it all greatly impact the performance of your KiwiSaver investment in the long run. If you are feeling unsure about your KiwiSaver options and as to which KiwiSaver fund you should be in you should consider completing a KiwiSaver Healthcheck.
When it comes to the best KiwiSaver funds, there are 5 main KiwiSaver options or fund types to choose from.
Here is the list of the 5 different KiwiSaver options and their risk type:
|
KiwiSaver Options
|
Risk Profile
|
|---|---|
|
Conservative
|
3/7
|
|
Moderate
|
4/7
|
|
Balanced
|
4/7
|
|
Growth
|
5/7
|
|
High Growth
|
5/7
|
Finding the best KiwiSaver funds for you depends on multiple factors such as your risk appetite, investment longevity, and goals. It can be overwhelming to pick amongst the countless KiwiSaver options available. Not only do you have to choose your provider, but also the right KiwiSaver fund(s). Then, you have the KiwiSaver contribution options to consider. What percentage of your salary do you want to invest? Will you invest the minimum 3% of your salary into KiwiSaver funds or more?
Choosing among KiwiSaver options can be a simple process once you know exactly what you want from your investment. You can change between KiwiSaver options anytime as your needs and goals evolve. National Capital is here to help you keep track of the best KiwiSaver funds regarding performance. We’re also here to answer any questions from the basics to more specific when it comes to your KiwiSaver options.
As no one can predict the future, being a smart investor consists of analysing existing and previous data for guidance. We understand that your full-time job isn’t to keep track of all the KiwiSaver investment options out there. However, ours is. With the goal of empowering one million Kiwis to become financially secure, free advice on KiwiSaver options is key. We use a combination of highly experienced financial advisors and technology to aggregate and track results of KiwiSaver investment options. Therefore, making the choice between KiwiSaver funds an easy one for all.
We have looked at the best performing KiwiSaver funds based on their 5-year returns, however, looking at the past performance of a fund is just one aspect when choosing the best KiwiSaver fund. Other questions you should be asking when considering your KiwiSaver options include:
There are a lot of KiwiSaver options out there. Our research team at National Capital compares KiwiSaver funds and looks at over 100+ funds to recommend the best KiwiSaver provider for you.
Our KiwiSaver investment recommendations look at the big picture and not just the scorecard. We sift through KiwiSaver options and recommend the best performers that match your lifestyle. So, what are you waiting for?
Common questions regarding KiwiSaver investment options and the best-performing KiwiSaver funds.
This is a perfectly reasonable question if you’re unfamiliar with KiwiSaver investment strategy or the financial market world. Simply put, your savings are invested into various assets with the expectation of a return on the KiwiSaver investment. The main metric differentiating the best KiwiSaver funds from the rest is the return on investment. These aforementioned assets that make up your KiwiSaver investment options may include cash, bonds, fixed interest, property, and shares.
Cash, bonds, and fixed interest are classified as income assets which make up a part of your KiwiSaver options. These are generally more stable assets that carry lower risk and likely generate lower returns in the long run. The more conservative KiwiSaver funds invest a larger proportion of money into these assets for those seeking a lower-risk investment.
On the other hand, property and shares are growth assets that are also part of your Kiwi Saver options. Growth assets are likely to exhibit short-term volatility and are generally considered higher-risk KiwiSaver investment options. However, these assets focus on capital growth and income and the best KiwiSaver funds are the ones with maximising returns.
Nonetheless, it is important to note that maximising returns isn’t the only factor people are concerned about. Some funds structure their investment strategy based on ethical, religious, and environmental beliefs. Hence, for some people, those may be the best KiwiSaver funds for them.
All of this information is publicly available for all Kiwis clarification about where their money is being invested. While researching 30+ investment companies will take you a fair bit of time, we’ve got an easy alternative for you. We’ve already done the research and continue to do so consistently to ensure you’re getting up-to-date information. You can simply submit a HealthCheck form to find the best KiwiSaver funds for you.
You may be looking for the best KiwiSaver provider. However, as you can see, various winners depend on the funds and Kiwi Saver options in the market. This is because each provider offers a range of KiwiSaver funds. While one of their funds may be a top performer, another may lag behind.
There are over 25 schemes with multiple funds available, so your KiwiSaver investment options are plentiful. Thus, choosing between the multitude of options can be overwhelming. While a friend may sing praises about a scheme, it may not necessarily be the right one for you. That is because people and their goals differ, therefore what works for them also differs.
Back to the question at hand regarding the best performing KiwiSaver options. As different providers offer a variety of funds, the people in charge of each fund also differ. Thus, the team managing the Milford Active Growth KiwiSaver Fund may be the best performing in the growth category. Meanwhile, in the moderate category, the Aon Russell LifePoints team outperforms the dedicated Milford team and the industry overall.
In summary, the first decision regarding your KiwiSaver investment options should be to pinpoint the fund category suited to you. This will be based on your risk appetite, age, ethics and beliefs, and stage of your life. Only then, can you compare schemes and consider selecting one based on performance.
Here at National Capital, we use a combination of technology and manual specialised analysis to provide custom recommendations. We’re aiming to simplify the process and really tailor your KiwiSaver options down to a handful suited to you. Our advice is free and there’s absolutely no obligation to follow through with any recommendations. Our aim is to simply get Kiwis to make an active decision on their Kiwi Saver options.
KiwiSaver funds that offer solid and consistent returns over a long period of time are typically what you look for. You’ve landed on the perfect web page that periodically tracks and adjust the best performers in each fund category. You can assess your KiwiSaver options yourself or you can get in touch with us for a guided walkthrough. We take into consideration your personal circumstances to narrow down the best Kiwi Saver options tailored for you.
Fees, also play a role in the difference between your KiwiSaver investment options. If the difference in the performance of two competing KiwiSaver funds is only slight and the fees differ significantly, your best option is the cheaper one. However, this also depends on a case-by-case basis as the fee structure is often determined by total savings.
A track record is also an important factor in choosing between Kiwi Saver options. We generally recommend funds with a long proven track record over another with higher returns but under 5 years old. This is because investing is a long-term game. Anyone can get lucky in the short term. What differentiates the best from the rest is consistently high returns over a period of more than 5 years.
Naturally, your financial goals also come into play when choosing the fund that is right for you. No matter how high the returns are in growth funds, the volatile nature of these funds isn’t good for some. It isn’t only a matter of risk tolerance. If you are withdrawing from your savings often, it can lead to major losses if withdrawn at the wrong times.
Your KiwiSaver investment options are plentiful. If you need guidance on choosing the right one for you, National Capital is here to help.
For the best performing KiwiSaver funds to exist, others will have to underperform in order for a natural order to form. Here we assess all KiwiSaver options and rank out the top performers in each fund category.
Through your KiwiSaver login, you can check out your existing returns on investment. How does your provider compare against the industry average and the best in your fund category? Your KiwiSaver options are plentiful, but are you in the right one?
If you’re happy with the current performance and it compares well, great! On the other hand, if you see that your returns are well below other KiwiSaver funds you should investigate further. How long has your fund been underperforming? If it is just a short period of time, it may well be an anomaly. However, if your fund has been outperformed over years of investing, it may be time to reconsider your KiwiSaver options.
All companies providing KiwiSaver investment options display their past performance for public record. These results are generally updated quarterly on their respective websites. Thus you can take it into your own hands to compare results versus the top performers listed on this page. We have chosen a period of 5 years as a good measure to track fund performance and consistency. Alternatively, you can complete our Health Check application and we can provide you with the best Kiwi Saver options automatically.
Remember, there are many other factors to consider when looking at your KiwiSaver investment options. Rather than making a rash switch, talk to us in order to make an informed decision.
According to Stats NZ, the household savings ratio as a percentage of net disposable income has been historically low. Before the Covid-19 pandemic began, it was averaging under 1% of disposable income. That changed since the Covid-19 pandemic broke out largely due to the insecurity people were facing in uncertain times.
For one reason or another, it is safe to say that Kiwis struggle with saving. This is exactly why KiwiSaver investment options are a great way to save and secure long-term financial freedom. Granted, investing in KiwiSaver funds isn’t the only way to guarantee a financially comfortable retirement, and it shouldn’t be. Your investment portfolio should be diversified and KiwiSaver options are a great tool to have on your belt.
A great reason why KiwiSaver funds are a good investment option is due to the ease of the entire process. Once you are enrolled and have selected amongst the available Kiwi Saver options, you don’t need to do anything else. The percentage of your salary is taken automatically from your payslip and invested into your account. Thus, for a nation that finds saving difficult to do, this is a hassle-free investment opportunity. Moreso, the minimum 3% of your salary invested is greater than the average household savings rate of 1%.
If one of your financial goals is to retire comfortably, you should be carefully considering your Kiwi Saver options. Naturally, that depends on what your account balance is when you are retiring. Thus, the earlier you analyse your KiwiSaver options, the more accurately you can focus on your retirement goals. We’re able to project your account balance when you retire by entering your contribution rate and annual returns. Get in touch with us to see if you’re where you want to be for retirement.
As already mentioned, there are multiple KiwiSaver investment options to choose from. You have KiwiSaver funds ranging from Conservative to Aggressive and Balanced funds in between. As the names suggest, different fund types have different risk and reward strategies that they implement. Choosing between funds and Kiwi Saver options is largely dependent on your risk tolerance. However, you must also consider your circumstances and financial goals, both long and short term.
KiwiSaver funds generally come with a Risk Profile rating that you should look for before making a decision. The lower the risk rating, the lower the potential returns, and vice versa. Lower risk funds also offer more stable investments that don’t fluctuate as frequently and rapidly as their higher risk counterparts. Low-risk assets typically include investments in fixed interest securities and moderate exposure to equities. On the other hand, high-risk KiwiSaver options primarily invest in international equities with potentially high returns but also high volatility.
The official IRD website mentions that there is a range of KiwiSaver funds to suit your needs. It also touches on the fact that different KiwiSaver investment options are available with different amounts of potential risk and return. However, it stops short of offering financial advice on which fund is the right one for you.
That is where National Capital comes in. We offer free tailored advice to make the choice between Kiwi Saver options one that you’re confident about. Although your risk appetite may be high, your life circumstances may be suited to a more pragmatic investment. Take our free assessment test and get custom recommendations on the best KiwiSaver investment options available to you.
There are a lot of Kiwi Saver options to choose from and this can make it hard to decide. Some people may not know that you can indeed split your savings in multiple funds offered by your provider.
This is to give you multiple KiwiSaver investment options regarding risk and reward. If you are nearing retirement and have a sizeable amount of money saved you may want a stable KiwiSaver investment. Normally, stability comes with a lower ROI in the form of Moderate and Cash KiwiSaver funds offered. However, if your risk tolerance is naturally high, you may seek to split your savings between a High Growth Fund and a Moderate Fund.
You may also be in your teens or early twenties and seek to split your savings between multiple KiwiSaver funds. At this age, your risk tolerance is generally higher than someone nearing retirement. This is partly because your balance is much lower (less to lose), and because there’s plenty of time until retirement. With your first home purchase in mind, your savings can be split between a High Growth and Growth Fund. This is because you want to be in funds that offer the highest returns possible in a short period of time. The part invested in a Growth or Moderate Fund is to hedge against the high volatility of High Growth Funds.
The split ratio of savings in different funds is also completely up to you as part of your KiwiSaver options. For example, you can invest 80% into a High Growth Fund and 20% into a Moderate Fund. Alternatively, you may have 60% in Moderate, 20% in Growth, and 20% in a High Growth Fund. This allows you the flexibility to match your KiwiSaver investment more precisely with your short and long-term goals.
A good return depends on the investment mix of the particular funds you are invested in. Combined with market volatility and risk, you cannot expect a guaranteed return on investment but can get an idea from past performance.
Based on National Capital’s research, here’s the 5 year average returns on different fund KiwiSaver options:
Conservative funds have a lower risk level and therefore tend to provide lower returns than other Kiwi Saver options. They may be a good option for people close to retirement. Or people who don’t want to see the value of their investments fluctuate too much.
Balanced funds are a moderate-risk investment and tend to provide moderate returns. These funds may be a good option for people who want to see some growth in their investments. And also don’t want to take on too much risk.
Growth funds have a higher risk level and therefore tend to provide higher returns than other types of KiwiSaver funds. They may be a good option for people who have a longer time horizon until retirement. And are willing to accept more volatility in the value of their investments.
As previously mentioned, you have the ability to mix and match your KiwiSaver investment options. You can split your savings in multiple KiwiSaver funds and therefore should expect different returns from each fund type.
Ultimately, there is no one-size-fits-all answer regarding what is considered a good return on KiwiSaver funds. It all depends on your circumstances and KiwiSaver investment options.
Your KiwiSaver funds are held in a trust and managed by professionals. The funds are used by your chosen provider to be invested in various assets, including shares, property, and cash. Even if their business goes under, they can’t use your funds to resolve their financial troubles.
On the other hand, the value of your investment will go up and down depending on how the markets perform. However, KiwiSaver options are expected to grow with time.
Your money is also diversified across a range of different investments, which helps to reduce risk. Different KiwiSaver investment options lead to a diversified portfolio to hedge against any single investment going down in value.
Your money is saved until you retire or purchase your first home and you can’t access it earlier. This can be seen as a good thing because it stops you from spending your savings spontaneously. But it can also be seen as bad because you can’t access the funds any time you want.
Kiwi Saver options are managed by professional fund managers. They invest your money in various assets trying to grow your savings. It can provide peace of mind for some savers, knowing that experts are looking after their money.
While there is no guarantee that you will profit from it, the vast majority of people are doing well.
So, it is justified to say that your Kiwisaver investment is in safe hands.
Most providers will have between 5 and 6 KiwiSaver funds for you to choose from. What differentiates them is the range in risk, volatility, and potential return rates.
With any single provider, your KiwiSaver options may range from cash to aggressive funds. Here’s a list of your KiwiSaver investment options with the majority of the big providers:
Cash Fund (Risk Profile: 1/7)
Conservative Fund (Risk Profile: 3/7)
Moderate Fund (Risk Profile: 4/7)
Balanced Fund (Risk Profile: 4/7)
Growth Fund (Risk Profile: 5/7)
Aggressive Fund (Risk Profile: 6/7)
Choosing between these KiwiSaver investment options should really depend on your circumstances. If you’re young and intend to invest long-term, then you may consider one of the higher-risk KiwiSaver options. On the other hand, if you are about to retire, you are looking for stability in your KiwiSaver investment. Therefore, picking one of the lower-risk options.
Lower-risk funds typically invest in assets that are deemed to be much less volatile and exposed to external shocks. Those investments are typically held in cash or government bonds for a low yet stable return.
Higher-risk funds will typically invest in listed companies around the world and multiple industries. These types of companies are usually left much more exposed to the overall economic environment and thus more volatile. However, there is the opportunity for higher returns when invested in the right companies in the long run.
According to the Finacial Market Authority’s 2022 Annual Report, growth funds are the most popular KiwiSaver investment choice. Below is a table showing the different types of KiwiSaver funds as classified by FMA. Keep in mind that Aggressive funds are also grouped with Growth funds.
|
Fund Type
|
Number of Members
|
$ Amount In Each Fund
|
|---|---|---|
| Multi-Sector Funds | ||
|
Active
|
4,841
|
$61,715,141
|
|
Conservative
|
855,157
|
$18,196,257,563
|
|
Balanced
|
775,378
|
$23,798,558,580
|
|
Growth
|
1,460,621
|
$38,523,719,885
|
| Single-Sector Funds | ||
|
Cash
|
215,760
|
$3,398,854,330
|
|
Fixed Interest
|
55,812
|
$522,892,668
|
|
Shares
|
89,711
|
$1,316,667,921
|
|
Property
|
7,629
|
$92,242,248
|
| Socially Responsible Funds |
36,307
|
$891,080,605
|
| Other |
11,015
|
$449,199,175
|
| Totals | 3,512,231 | $87,251,188,116 |
As we can see, Growth funds are the most popular choice amongst KiwiSaver investment options, followed by Conservative and Balanced. Interestingly, there are more members in Conservative funds, however with a lower total investment dollar value than Balanced Funds. This indicates that members who hold their KiwiSaver investment in Balanced funds will have a higher balance than those in Conservative funds on average.
It is also worth noting that some people decided to spread their savings across multiple Kiwi Saver options. The total KiwiSaver investment member number is not 3,512,231. This number includes members investing in more than one of the KiwiSaver options. According to IRD, the actual total number of members is currently at 3,204,352.
For the majority of Kiwis, KiwiSaver funds can only be withdrawn during the purchase of their first home or retirement. In both of these scenarios, they can withdraw their KiwiSaver investment as a lump sum should they choose to. Whether it is a good idea or not, depends entirely on your circumstances and financial goals.
People withdrawing their KiwiSaver investment to purchase their first home will usually do so in a lump sum. This is typically necessary to get as big of a deposit as possible and get financing with favourable terms. However, if they don’t need to, it is one of their KiwiSaver options to withdraw as little as they want. According to Kainga Ora, at least $1,000 must remain on your account after withdrawing.
Once you’ve reached the age of retirement (currently 65), you are also eligible to withdraw your KiwiSaver funds. Again, as part of your Kiwi Saver options, the choice to do it as a lump sum is yours. However, for many retirees, it is recommended that they stick with their KiwiSaver investment options. The best KiwiSaver funds will continue providing annual returns and thus it can be beneficial to your long-term security.
Of course, the key purpose of KiwiSaver investment options is to provide you with some financial security post-retirement. Naturally, you will rely on withdrawing KiwiSaver funds to help maintain a certain lifestyle when you stop working. Some providers like Westpac, have certain minimum withdrawal requirements. For regular withdrawals, they require a minimum of $100 a month and a minimum of $500 for lump sum withdrawals. You should check with your provider about their withdrawal policies to avoid any related fees.
To discuss the best KiwiSaver funds or the most appropriate Kiwi Saver options for you, contact National Capital today.
Some of the best KiwiSaver funds tend to deliver annual returns of around 8% in the long term. However, it’s a big world out there and you have many choices available in addition to KiwiSaver investment options.
One of these alternatives to KiwiSaver investment options is trading individual stocks. Trading single stocks can indeed provide much higher returns than a diversified portfolio like the various Kiwi Saver options offer. However, investing in single stocks is much riskier and volatile. Furthermore, it takes a good understanding of the financial markets, timing, and analysis of the companies you invest in.
Another alternative to KiwiSaver options is a traditional savings account. A savings account will pay interest on the savings you have accumulated over time. This option typically offers lower returns than KiwiSaver funds, however, it provides high liquidity as you can withdraw money instantly. Savings accounts may also not always keep up with inflation, which can erode the purchasing power of your saved amount.
Other investment options do not come with the government incentives that KiwiSaver options come with. Those incentives being a yearly government contribution and regular employer contributions. With other investments, you are normally solely relying on performance alone.
In summary, the choice between KiwiSaver investment options and other alternatives depends on goals, risk tolerance, and investment knowledge. The best KiwiSaver funds offer a really good annual return as well as a hands-off approach to investing. On the other hand, savings accounts offer stability and liquidity while individual stocks can offer higher returns at higher risk. That is not to say that you should only invest in Kiwi Saver options. Depending on your financial goals and circumstances, a balanced approach could mean investing in all three of the aforementioned options.
This is a perfectly reasonable question if you’re unfamiliar with KiwiSaver investment strategy or the financial market world. Simply put, your savings are invested into various assets with the expectation of a return on the KiwiSaver investment. The main metric differentiating the best KiwiSaver funds from the rest is the return on investment. These aforementioned assets that make up your KiwiSaver investment options may include cash, bonds, fixed interest, property, and shares.
Cash, bonds, and fixed interest are classified as income assets which make up a part of your KiwiSaver options. These are generally more stable assets that carry lower risk and likely generate lower returns in the long run. The more conservative KiwiSaver funds invest a larger proportion of money into these assets for those seeking a lower-risk investment.
On the other hand, property and shares are growth assets that are also part of your Kiwi Saver options. Growth assets are likely to exhibit short-term volatility and are generally considered higher-risk KiwiSaver investment options. However, these assets focus on capital growth and income and the best KiwiSaver funds are the ones with maximising returns.
Nonetheless, it is important to note that maximising returns isn’t the only factor people are concerned about. Some funds structure their investment strategy based on ethical, religious, and environmental beliefs. Hence, for some people, those may be the best KiwiSaver funds for them.
All of this information is publicly available for all Kiwis clarification about where their money is being invested. While researching 30+ investment companies will take you a fair bit of time, we’ve got an easy alternative for you. We’ve already done the research and continue to do so consistently to ensure you’re getting up-to-date information. You can simply submit a HealthCheck form to find the best KiwiSaver funds for you.
The right KiwiSaver fund will make a big difference to your KiwiSaver investment payout.
Spending 10 minutes to complete our HealthCheck form may be the most important thing you can do for your KiwiSaver funds right now.
