KiwiSaver has become a big part of many New Zealanders’ financial lives.

Is yours appropriately positioned for your circumstances and goals?

When it comes to getting the most out of KiwiSaver, here are three questions that may be more important than “What’s my balance?”

Am I in the right fund type?

Getting your fund type right is important.

The most appropriate fund for you will depend on your investing time horizon, your goals and your risk tolerance.

In general, if you have a long time until you plan to access your money, you may be able to take more risk. For example, by investing in a growth or an aggressive fund type within your KiwiSaver plan.

The value of higher risk investment funds fluctuates more when markets are volatile but can potentially deliver larger returns over time than more conservative investments.

If you’re planning to use your money soon, such as for a first home withdrawal, it’s important to consider whether your current fund type is still appropriate for your objectives. Fund types with lower volatility, such as conservative or cash funds, may help reduce the impact of short-term market movements on your balance, but they might not offer the same long-term return potential. Your SHARE financial adviser can help you assess your timeframe and goals, and guide you about the right fund for your circumstances.

How will I use my KiwiSaver plan – first home, retirement or both?

Knowing what you plan to use your KiwiSaver investment for, will help you get your strategy right. If you’re planning to use your funds to help you into a first home in a few years’ time, for example, you might have a different investment strategy compared to someone who is putting money aside for retirement many years away.

Knowing what you’re aiming for also helps you work out whether you are on track. If you know roughly what end goal you’re aiming for, you can work backwards from there to check you’re contributing enough to get there.

Am I making the most of contributions (my own, employer, and government)?

Your goals will help guide you as to what contributions are likely to be necessary.

It also makes sense to contribute at least enough to get the full benefit of the other contributions available to you.

The default contribution rate is moving from 3 percent for employees and 3 percent for employers, to 4 percent equivalent contribution rates.

However, if your employer offers to match a higher contribution, it usually makes sense for you to do this if you can – otherwise you’re just leaving money on the table.

It’s also a good idea to check you’re contributing at least $1,042.86 a year to get the full Government member tax credit. For the year ending June 30, 2025, the Government will pay 50c into your KiwiSaver plan for every $1 you contribute, up to a maximum of $521.43; from 2026, the Government contribution drops to 25c per $1 contributed, or a total of about $260.

Performance matters

When it comes to KiwiSaver, your fund performance matters but clarity and alignment are key.

It’s important to have a clear view of your goal and the strategies you are using to get there.

Markets will move around but if you take a long-term view and have investments that align with your risk profile, this volatility should not be a problem.

We’re here to help

As advisers, we’re here to help you make the most of your KiwiSaver investment and to help you achieve your financial goals.

We can help you by looking at your goals and financial strategy and assessing how your fund choice and contribution rate fit with those.

Knowing you have a clear plan can help you feel a lot more confident about your investment decisions.

Time for a check-in?

If you’d like to discuss your KiwiSaver plan, get in touch with the SHARE team. We’re here to answer any questions you may have and can help you work through the options available to you.

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.