KiwiSaver: Retirement savings for New Zealanders
KiwiSaver is a retirement savings plan for New Zealanders. It offers flexible contributions, diverse investment options, and government incentives to help grow your savings.
What is KiwiSaver?
KiwiSaver is a voluntary, work-based savings scheme that helps New Zealanders prepare for retirement. You can contribute to KiwiSaver through automatic deductions from your paycheck or by making direct payments to your selected provider. This gives you control and flexibility over your savings.
Independent providers manage KiwiSaver schemes, offering investment options to match different goals and risk levels. You can select your provider or be automatically enrolled when starting a new job, provided you meet the eligibility criteria.
Selecting the right KiwiSaver provider and investment strategy can significantly impact your financial future. That’s where unbiased broker advice comes in. As an impartial financial advisor, I compare top providers and options across the market. This ensures you find the best fit for your needs while saving time and avoiding unnecessary complexity.
KiwiSaver, established by the New Zealand Government, is available to all New Zealand citizens and permanent residents living or usually living in New Zealand.
It complements New Zealand Superannuation, allowing you to access both once you reach the retirement age of 65. KiwiSaver provides an additional savings option to help secure your financial future while benefiting from government and employer contributions. Together, KiwiSaver and Superannuation offer a more robust foundation for retirement.
Automatic Enrollment:
You will be automatically enrolled in KiwiSaver if you:
- Meet the eligibility requirements.
- Start a new job.
- Are aged between 18 and 65.
Which KiwiSaver investment strategy is right for you?
Choosing the ideal KiwiSaver strategy is crucial for maximizing your savings, whether you’re buying your first home or planning for retirement. The right choice can significantly impact your financial future.
At LifeCovered, we recognize that every investor has unique goals, timelines, and risk preferences. That’s why we offer tailored investment strategies to match your needs, giving you the flexibility to build your wealth your way.
Conservative
Risk Level: Low
Investment Mix
Cash, term deposits, and bonds
Key Features
- Stable but lower growth potential
- Ideal for short-term goals
- Minimal risk exposure
Balanced
Risk Level: Medium
Investment Mix
Mix of growth and conservative assets
Key Features
- Moderate growth with some fluctuation
- Suitable for 5-10 year timeframe
- Balanced risk-reward profile
Growth
Risk Level: High
Investment Mix
Shares and property, smaller bond allocation
Key Features
- Higher potential returns
- Best for long-term investment (10+ years)
- Higher volatility tolerance required
Aggressive
Risk Level: Very High
Investment Mix
Almost entirely in shares
Key Features
- Maximum growth potential
- Ideal for younger investors
- Highest risk tolerance needed
Default
Risk Level: Low to Medium
Investment Mix
Balanced mix of cash and growth assets
Key Features
- Moderate returns with limited risk
- Good starting point for new investors
- Auto-enrollment default option
Specialized
Risk Level: Varies
Investment Mix
Focused on ethical or niche strategies
Key Features
- Value-driven investment approach
- Focus on specific sectors or themes
- Risk varies by strategy
FAQ's
What is the best KiwiSaver fund type for retirement planning?
The best KiwiSaver fund for retirement planning depends on your time until Retirement and your risk tolerance:
1. Long Time Until Retirement (10+ Years)
- Best Fund Type: Growth or Aggressive Funds
- Why? These funds focus on growth assets like shares and property, offering higher long-term returns. They suit younger investors who can handle short-term market ups and downs.
2. Medium Time Until Retirement (5–10 Years)
- Best Fund Type: Balanced Fund
- Why? Balanced funds combine growth and conservative assets, providing moderate returns with lower risk. They work well for mid-career investors preparing for Retirement.
3. Near Retirement (0–5 Years)
- Best Fund Type: Conservative or Defensive Funds
- Why? These funds prioritize stability by investing in low-risk assets like bonds and cash. They help protect your savings from market fluctuations as retirement approaches.
KiwiSaver Advice
The best KiwiSaver fund depends on your goals, risk tolerance, and time frame. Avoid switching funds based on past performance. Instead, choose a fund that aligns with your long-term objectives and investment strategy.
What is the difference between superannuation and KiwiSaver?
Superannuation and KiwiSaver differ in their purpose, funding, and structure. Superannuation is a government-funded pension providing a basic income for New Zealanders aged 65 and over. It is funded through taxation and does not rely on personal savings or investments.
KiwiSaver, on the other hand, is a voluntary retirement savings scheme supported by contributions from individuals, employers, and the government. It offers investment options and allows early withdrawals for specific needs, such as purchasing a first home.
While superannuation ensures a universal retirement income, KiwiSaver supplements retirement savings through personal contributions and investment growth, offering greater financial security.
Important Information About Our KiwiSaver Services
General Advice Notice
Book a free consultation with one of our expert advisers to discuss your unique situation. While our website provides helpful information, nothing beats personalised guidance tailored to your specific needs and circumstances. Our LifeCovered advisers take the time to understand your situation and find the right coverage for you – at no cost.
Please note that while our website information is helpful, it is general in nature and should not be taken as personal advice.
Our Advisers and Services
LifeCovered advisers are licensed by the Financial Markets Authority to provide financial advice for:
- KiwiSaver
- Life insurance
- Health insurance
- Trauma Insurance
- Mortgage & Rent Insurance
- Disability & Income Protection Insurance
Please visit our Public Disclosure page for more details about our licensing and services.
How much does our advice cost?
LifeCovered does not charge any fees for our service.
We provide unbiased advice by looking at all your insurance options across different providers – and our service is completely free. We’re paid through commissions by the insurance companies, who share a portion of their margin with us as your financial adviser. You’ll pay exactly the same premium whether you use our expert advice or go directly to the insurer. That means you get professional, impartial guidance to help you make informed decisions at no extra cost.
Your Privacy
Wondering how we protect your privacy?
Your privacy is just as important as helping you protect what matters most. You can trust us to keep your personal information safe and secure. Unlike some companies, we never sell your contact details to insurance brokers or share them with anyone else. Your details are used for one purpose only – helping you find the right insurance coverage.
Insurance Coverage and Policies
- Built-in and optional benefits
- Stand-down periods
- Exclusions
- Specific terms and conditions
- Premium loadings not detailed on our website
- Additional premiums for optional benefits
Important Disclaimers
Please be aware that:
- Insurance providers may modify policy details at any time
- The information on our website is not definitive or binding
- If there are differences between our website’s policy descriptions and the insurer’s official policy document at the time of approval, the insurer’s version will prevail
For complete details about any insurance product, please refer to the specific policy document provided by the insurance company.