National Capital provides digital financial advisory services that specialise in KiwiSaver. It was founded in 2018 and now advises Kiwis on millions of their KiwiSaver savings. We are based in Auckland, but serve and provide financial advice to clients all over New Zealand.
No, we do not charge our clients any fees. We provide free KiwiSaver advice, with the goal of empowering one million Kiwis to become financially secure.
This service is free of charge because the providers pay us the fees on your behalf.
We only work with providers who are willing to pay us as we are providing a valuable service which is mutually beneficial for all parties involved. We monitor the provider’s funds, keep in contact with clients and alter our recommendations based on evolving circumstances. The providers are paying us an ‘advice-fee’ to serve their clients instead of the client paying for our advice. In a sense, we provide the ‘customer service’ part of their KiwiSaver product.
Check out this article for more information.
Our recommendations cover a universe of more than 20 KiwiSaver Scheme providers managing more than 300 KiwiSaver funds between them. The following KiwiSaver providers pay us to provide financial advice to their clients.
Our Investment Selection process page has more details.
National Capital is New Zealand owned and operated. We comply with all New Zealand legislation and keep our client’s interests above our own. We are regulated by the Financial Markets Authority (FMA) which is the New Zealand Government’s agency responsible for financial regulation. National Capital is audited. We are real people.
However, it’s not just legislation that makes us do the right thing. The business is also based on three Maori principles; pūataata – to be transparent, tikanga – the correct way, and taurikura – prosperity. These values guide decision making in order to build trust with clients, shareholders and employees.
Trust between a client and their adviser is very important. We acknowledge that utilising a digital financial adviser can be daunting as you are essentially receiving advice from someone you haven’t met. But we are real people! Check out this short video about our emphasis on trust at National Capital.
National Capital is a Kiwi Owned and operated company led by people with much experience in New Zealand Financial Services.
To find out more about us, check out our About Us page.
KiwiSaver is the New Zealand retirement saving scheme. It is a voluntary saving scheme and you can choose to contribute 3%, 4%, 6%, 8% or 10% from your gross (before tax) income. Your employer contributes a minimum of 3% your gross income too.
The money is then invested on your behalf by a KiwiSaver provider into a KiwiSaver fund of your choice. There are different types of KiwiSaver funds ranging from Cash to Aggressive funds. We’ve explained the different types of KiwiSaver funds in this 2 min video.
There are significant financial benefits associated with being in a KiwiSaver fund.
The most obvious benefit is that you obtain a return on your invested amount. This comes in the form of capital gains and earnings. In a KiwiSaver fund, you can be exposed to a variety of different investment assets which have the opportunity of yielding a much higher reward than simply keeping your retirement savings in the bank.
The government makes a voluntary contribution of up to the value of $521 per year depending on your contribution to the scheme.
Your employer also contributes a minimum of 3% of your gross income to your KiwiSaver.
The money you put into your KiwiSaver fund is invested into a variety of investment assets such as stocks and bonds. Putting your money in the bank is also a form of investing. The difference between investing in a bank account and a KiwiSaver fund is that they invest in different types of investment assets. This is due to differing client demands and return expectations.
The purpose of investing is to generate a return in the form of capital gains (increase in the value of an asset) and/or income earnings (distributions like interest or dividends).
When you log in to check the balance of your KiwiSaver fund, the amount that you see is how much all those units are worth at that exact moment in.
The best KiwiSaver fund is the one that is right for your personal situation. You need to take a lot into consideration; required returns, volatility capacity and volatility tolerance are just some of the many factors that can influence the right KiwiSaver strategy.
Take the KiwiSaver HealthCheck to determine what the best strategy for you is.
Given that under 18’s won’t get the government’s Member Tax Credits each year, and are likely to be contributing less as they are not working, then fees are often quite the main focus.
For personalised KiwiSaver advice, complete the KiwiSaver HealthCheck. It takes a few minutes for someone under 18.
Fund performance is only one of the many factors that need to be considered when choosing a KiwiSaver fund. While analysing historical returns is a helpful metric to evaluate investment options, a major downfall of this comparison is that past performance does not guarantee future performance.
The best performing KiwiSaver fund is a subjective competition as there are a plethora or factors to take into consideration. Risk, ethical concerns (ESG), fees, customer service, asset allocation and alignment to one’s personal situation are just some of the many factors that play an important role when deciding which fund to invest in. The weighting you give to each aspect will determine the best KiwiSaver fund for you.
Check out our analysis of the best performing KiwiSaver funds to see how your current KiwiSaver scheme measures up.
Fees should not be the sole determinant of your KiwiSaver scheme choice. However, when comparing fees – you need to ensure that you are comparing apples to apples. Comparing fees of a Conservative fund of one scheme to a Growth fund of a different scheme will not give you an accurate representation.
Fees are only one component of fund selection. Before you can even begin comparing fees, the first thing you need to do is establish the right fund type. You also need to consider various other factors such as returns after fees, investment processes, long-term record of the company, and the suitability of the fund to your investor profile and volatility capacity.
In the unlikely event that your KiwiSaver provider goes bankrupt, your KiwiSaver funds will be safe. This is because your KiwiSaver money is held in a trust, which means it cannot be used by your KiwiSaver provider to cover their debts. In other words, your KiwiSaver provider simply manages your money and does not own your assets.
The type of KiwiSaver fund that you should be in depends on your personal circumstances. Determining where you are and where you want to be is important so you can set realistic goals and implement a strategy that can achieve them. This will guide you when selecting an appropriate scheme.
Take the KiwiSaver HealthCheck to determine the right type of fund for you.
Once you have determined the type of KiwiSaver fund you should be in, the next step is selecting the right provider. This should take into consideration your goals and preferences for the fund, as well as providers investment methodology and risk mitigation strategies. Examples of this include whether you prioritise high returns, low fees, ethical investing, New Zealand owned etc. The key is ensuring that the objectives of the scheme align with your personal goals and ethics.
Take the KiwiSaver HealthCheck to determine the best provider fund for you.
The rate of return is the annualised amount that you need from your KiwiSaver fund to reach your retirement savings goal. It is specific to your personal situation and is determined through a series of calculations that takes into consideration factors such as your current KiwiSaver fund balance, your contribution rate, your employer contribution rate and the years remaining for your retirement.
Take the KiwiSaver HealthCheck and we can do this for you. Alternatively, check out this article for more information and to do the calculations yourself.
Your contribution rate has the single biggest impact on your KiwiSaver balance at retirement. The best answer to this question is ‘as much as you can.’ However, this isn’t a very practical solution.
To figure this out you need to balance the needs and desires of your current self with those of your future self. At National Capital we run a series of calculations which generates different scenario outputs for given contribution rates to determine the best one.
Take the KiwiSaver HealthCheck and we can tell you the difference your contribution rate will have on your situation at retirement. Alternatively, you can check out this article for more information about calculating your contribution rate.
Due to market volatility, your KiwiSaver investment fluctuates just like the stock market. When your balance drops, you still own the same amount of shares, they are just worth less at that particular moment in time.
As KiwiSaver is a long-term investment, it is normal to experience the ups and downs of the market cycles in the short-term. Historically, markets do recover over time and increase in value. Structuring and sticking to a sound financial plan based on your current financial situation, not that of the market, is the key to navigating market volatility.
There are several other conditions where you can withdraw your KiwiSaver savings. These include:
Please note that withdrawing your KiwiSaver fund early for exceptional circumstances can have some pretty serious repercussions. You are not only taking out the face value of the withdrawal, you are also losing all the future potential gains from that amount too. You can adversely impact your future financial situation much more than you will help your present one.
This cooking the books podcast discusses the benefits and repercussions of draining your KiwiSaver fund for hardship.
If you are unsure who your current KiwiSaver provider is, contact the Inland Revenue Department. If you are a member of KiwiSaver, they will be able to tell you who you are with.
You only pay tax on the investment returns your KiwiSaver fund makes for you, not your principal amount. In most cases, your scheme will collect your share of the payable tax and pay the IRD on your behalf based on the prescribed investor rate (PIR) you provide them. You can read more about this here.
Your current PIR depends on how much you earned in the previous two tax years, if you’re not sure on what your PIR is, you can take National Capital’s simple PIR calculator to find out.
You can make voluntary contributions only if you are on a savings suspension (formerly known as “contributions holiday”).
A savings suspension (contributions holiday) refers to the decision to take a break from contributing to your KiwiSaver fund. Here are some of the details:
To apply for a savings suspension, you can;
The level of sustainability and societal impact of an investment can be measured using the Environmental, Social, and Governance (ESG) metrics. Many KiwiSaver plans include an ESG section in their website or product disclosure statement.
When researching KiwiSaver funds, it is important to do more than simply look for the word ethical in the website or fund name. National Capital looks into what organisations and industries a KiwiSaver fund invests in and what the process and policies are for the fund’s selection process.
Click here to read an example of how National Capital researches the ethical aspects of KiwiSaver funds.
The process of transferring your KiwiSaver funds to another KiwiSaver provider usually takes around 10 business days. In this process, your funds should not be out of the market for more than 3 business days, this can sometimes take longer if there are delays in the processing from the IRD or your current provider.
No, merely continuing to make investments from overseas into a KiwiSaver account would not be enough to make you a tax resident (assuming you do not have a permanent place of abode in New Zealand).
Non-tax residents are only taxed on their New Zealand sourced income. To be a non-tax resident of New Zealand, a person must be absent from New Zealand for at least 325 days in any rolling 12-month period and also not have a permanent house or home in New Zealand.
Everyone’s retirement situation is different, many Kiwis continue to work past the age of 65. Once you turn 65, you have access to your KiwiSaver savings but you don’t have to withdraw them all at once. You can make partial withdrawals, set up regular withdrawals, and even continue contributing to your KiwiSaver account.
If you’ve decided to withdraw your KiwiSaver savings, you will need to contact your KiwiSaver provider and complete their withdrawal form.
Yes, you can.
Complete the KiwiSaver HealthCheck. National Capital will then provide you with recommendations on what KiwiSaver scheme will suit your needs. If you are happy to proceed then you will be sent the required documentation to start a KiwiSaver account.
No, you don’t have to be employed to start a KiwiSaver account.
Yes, as long as you are making your own contributions.
The maximum that the Government can contribute is $521.43. In order to receive this, you need to put at least $1,042.86 into your KiwiSaver, between the 1st July to 30th June each year.
Advisors and clients should have a discussion on which funds (Conservative, Balanced, Growth, etc) are best suited for their goals and their tolerance to volatility. We can then let the providers know how to split the existing balance in your KiwiSaver accounts (eg. 20% into a Balanced fund and 80% into a Growth fund).
However, it is not necessary to split your contributions in the same proportion as your existing balance. You can distribute them however you need to. Keep in mind that when you contribute money into your KiwiSaver account, your contributions and your employer’s contributions get pooled together – and the total can then be distributed towards one or more funds.
Always contact your financial advisor to see if changing your contributions ratios is best for you.
The “best KiwiSaver fund” for first home buyers will depend on how much you have in your KiwiSaver account and when you want to withdraw it. There is no one perfect solution for all.
Complete our online KiwiSaver HealthCheck so we can analyse your situation and create some personalised KiwiSaver advice.
If you are wanting to withdraw your KiwiSaver funds to help with the purchase of your first home, you may need to consider factors such as the deposit amount needed, the flexibility of the time frame you want to buy your first home, and your tolerance to volatility. If your chosen fund type is too aggressive, your KiwiSaver balance could drop just as you’re about to reach your goal.
National Capital can give you personalised advice on what KiwiSaver fund suits you and your goals best. Start by filling out our KiwiSaver HealthCheck.
You are able to withdraw all or part of your KiwiSaver savings to help buy your first home. However, at least $1,000 must remain in your KiwiSaver account.
You can use KiwiSaver to buy your first home if:
You cannot use KiwiSaver to buy your first home if:
You can withdraw as much as you like, but you will need to leave at least $1,000 in your KiwiSaver account afterwards.
You cannot withdraw any Australian superannuation savings.
*Only member tax credits that have already been paid into your KiwiSaver account can be withdrawn.
Contact your KiwiSaver provider or complying fund provider.
Your KiwiSaver is a locked-in investment, meaning it may take longer to release your funds. It can take more than 10 days to process a KiwiSaver first home withdrawal application, so check with your fund provider in advance.
Funds are usually paid to your solicitor who will then forward it onto the vendor on the settlement date.
Yes, you can use your KiwiSaver account to purchase a section/land without a house. There is no timeframe for when a house must be built.
You will not be eligible to use the First Home Grant to buy a house to place on land that you do not own. You can instead buy the family land (with some help from the grant) and then withdraw money from your KiwiSaver account to buy the house to be put on your purchased land.
No, if you have lived in your house for more than six months, there should not be any hidden fees in relation to your KiwiSaver withdrawal (or First Home Grant, if you used that).
The property is owned by the trust, which you could think of as a separate entity designed to include and protect a number of assets. This entity (trust) is the owner of the home. So as long as the house is still in the trust and not removed from it to be put directly in your name, technically you do not own the property. While the beneficiaries can receive benefits from the trust, so long as the trust is the main proprietor, the beneficiary status does not interfere with your financial situation in terms of ownership.
You must not be a nominated trustee of the trust either because that could potentially mean that you have control of the trust and a vested interest in the property, therefore, causing complications that could exclude you from being able to withdraw your KiwiSaver money.
So, you must not have a direct vested interest in the house in order to be able to claim that you own no property, i.e. it must not be under your name.
This, alongside the assumption that your financial situation is equivalent to that of a first home buyer should potentially be enough to let you qualify for the withdrawal of your KiwiSaver funds for the purchase of your first home.
When applying to withdraw your KiwiSaver funds to put towards your First Home deposit, whether you are a contractor or an employee, the following criteria must be met:
You cannot use KiwiSaver to buy your first home if:
What can I withdraw?
You are eligible for KiwiSaver’s First Home Grant if:
Your property is eligible for KiwiSaver’s First Home Grant if:
| Region | House price cap for older/exisiting properties | House price cap for new properties |
| Auckland, Queenstown Lakes District | $600,000 | $650,000 |
|
Hamilton City, Tauranga City, Western Bay of Plenty District, Kapiti Coast District, Porirua City, Upper Hutt City, Hutt City, Wellington City, Nelson City, Tasman District, Waimakariri District, Christchurch City, Selwyn District |
$500,000 | $550,000 |
| Rest of New Zealand | $400,000 | $500,000 |
If you are purchasing an existing/older home, the First Home Grant is $1,000 for each year of contribution (with a maximum of $5,000)
If you are purchasing a new home, a property bought off the plans or land to build a new home on, the First Home Grant is $2,000 for each year of contribution to the scheme (with a maximum of $10,000).
If the house you are buying received its building code compliance certificate less than 12 months before the date of the First Home Grant application, then it is considered a ‘new home’.
If you are buying a property with other people, you can each qualify for the grant. A maximum of $20,000 per dwelling applies.
If you are eligible for the KiwiSaver first home grant, submit your application to Kāinga Ora no later than 4 weeks (20 working days) before settlement/payment date.
If you have owned property or land before (but no longer have interest/share in the property) and your financial position is considered the same as a first home buyer, you may still be eligible for KiwiSaver’s first home withdrawal and the First Home Grant.
You may be eligible for KiwiSaver’s first-home withdrawal or first home grant as ‘previous homeowner’ if:
| Region | Asset cap per region |
|
Auckland, Queenstown Lakes District |
$120,000 |
|
Hamilton City, Tauranga City, Western Bay of Plenty District, Kapiti Coast District, Porirua City, Upper Hutt City, Hutt City, Wellington City, Nelson City, Tasman District, Waimakariri District, Christchurch City, Selwyn District |
$100,000 |
| Rest of New Zealand | $80,000 |
What are considered realisable assets?
The eligibility criteria to receive KiwiSaver’s First Home Grant stays the same even if you are self-employed or a non-earner.
To be eligible for KiwiSaver’s First Home Grant you must:
How regular do voluntary contributions have to be to still be eligible?
Is the 3% of the minimum wage based on a certain number of hours per week?
If contributions don’t have to be consecutive, is there a certain amount of contributions that have to be made prior to applying for the First Home Grant?
