If you’ve joined KiwiSaver and you’re making regular contributions, you may think retirement is taken care of and there’s not much more to do. Have you considered, though, whether your KiwiSaver settings are still aligned with your goals?

KiwiSaver can be a useful tool for building retirement savings and may also help with a first-home purchase. Reviewing your settings regularly can help ensure they continue to reflect where you are heading.

Why KiwiSaver isn’t “set and forget”

A lot of the work of KiwiSaver happens behind the scenes. Your contribution is deducted from your pay before it arrives in your account, and your fund manager manages the underlying investments. While the automation is one of the reasons the scheme is so successful, it isn’t something you should “set and forget”. Things like your risk profile and appropriate contribution level may change over the course of your investing life.

Changing your outcome

There are several factors that can make a significant difference to your KiwiSaver balance over time.

Your contribution rate: How much you contribute can affect your KiwiSaver balance over time. The appropriate rate will depend on your affordability, goals and whether other saving or investment options may also be useful. If you are eligible, your employer will generally contribute too, although tax is deducted from employer contributions.

Sorted’s KiwiSaver calculator can help illustrate how factors such as contribution rates, fund choice and timeframes may affect a projected balance. These figures are estimates only. Depending on your goals and need for access to the money, it may also be appropriate to consider saving or investing outside of a KiwiSaver account.

Your risk level: The type of fund you’re in also makes a difference. Growth and aggressive funds hold more growth assets and are designed for greater long-term growth, but they can experience larger short-term rises and falls.

Your SHARE adviser can help you determine what might be an appropriate level of risk for your investments. Your retirement timeframe, tolerance for market movements, capacity for loss and any planned first-home withdrawal, are likely to be important factors. The longer you have to invest, the more time you may have to ride out market movements.

Fees and value: Fees reduce investment returns and can add up over time. However, a higher fee does not necessarily mean a higher return. Fees should be considered alongside the fund’s risk level, long-term performance after fees, services and any advice provided.

Things change

The settings that were right for you at 25 may not be appropriate if you’re 45, 55 or closer to retirement. Early in your investing life, you may be primarily saving for a first home, whereas later you may be more focused on your retirement years. The right KiwiSaver settings will also depend on the rest of your financial life. We can help you to determine how your overall financial picture fits together.

As your income, goals or other investments change, you may need to adjust your approach.

Sometimes, we’ll also see the KiwiSaver settings change. From 1 April 2026, the default contribution rate lifted to 3.5 percent and are scheduled to increase this to 4% from 1 April 2028. Employees who need to contribute less may be eligible to apply for a temporary reduction to 3%.

We’re here to help

Your SHARE investment adviser can help you review whether your KiwiSaver contribution rate, fund choice and other settings remain appropriate for your goals, circumstances and timeframe. Before making changes, it is worth seeking personalised advice and considering how your KiwiSaver investment fits alongside your wider financial plan.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.