If you’re heading for retirement and starting to worry that you won’t be able to afford the lifestyle you want once you get there, then you want a KiwiSaver provider who’ll help make planning for your retirement easy. But how do you choose the right one for you?
To help you out, we’ve listed 5 key questions we think it’s worth asking when choosing a KiwiSaver provider, especially:
1.How does it perform?
Talking of performance, it plays a big part in the amount of money you could hit retirement with. When looking at different providers’ performance, make sure you compare apples with apples by assessing the same fund types (so, for example, balanced funds with balanced funds). This will give you a clearer picture of how each provider’s performance measures up against its competitors.
Remember though - investing for retirement is a marathon and not a sprint. Short-term returns can be all over the place, so the best bet is to check how a fund has performed over the long-term.
Even then, past performance is no indication of future performance and last year’s top-performing fund could be next year’s biggest loser.
We know you work hard to build your savings so it’s critical that they are intact for your retirement. Our in-house investment management team has an active, global investing strategy. Enhancing your wealth is important, but preserving member wealth is one of our guiding philosophies.
2. How’s the service?
Different KiwiSaver providers offer different levels of service. You need to decide the level of service that suits you best. Do you want a provider that gives you minimal visibility and control over your investment, or one who offers you the tools, info and expertise you need to help shape your retirement?
At Kiwi Wealth, we make sure our members get access to the support they need to make informed decisions about their KiwiSaver account. Members can contact our in-house customer service team for help or use our innovative online service - Future You – to help them get their heads around how their KiwiSaver account may help in their retirement.
All members of the Kiwi Wealth KiwiSaver Scheme (aged 18-65, and who haven’t made an Australian super transfer) can use Future You, which lets you pick a financial goal for your retirement, track how you’re progressing towards it and make changes to your account and see, on-the-spot, the effect these may have on your KiwiSaver balance.
This digital service is backed by our team of expert financial advisers, who are on hand to help you shape your retirement planning, with KiwiSaver and beyond.
3. What’s the investment strategy?
Does your investment manager take an active or passive approach? Are they a global investor or do they concentrate on NZ and Australia? Kiwi Wealth takes a global, highly diversified and responsible investment approach.
Is there a full range of fund types that will match your changing needs over time? Are the differences between the funds explained clearly?
Is your provider a responsible investor? How much does that matter to you? At Kiwi Wealth, we incorporate environmental, social and governance issues into our investment analysis and decision-making.
4. What are the fees, and why?
Fees can make a big difference to how much you have in your KiwiSaver account, so it’s important you understand exactly what it is you’re paying for. Cheaper isn’t necessarily always better – a provider might charge more for a higher level of service or a more active investment strategy.
Look for a clear explanation of what you’re paying fees for, and whether you think value for money is on offer.
At Kiwi Wealth, we’ve always shown our members exactly how much we charge them, in dollars and cents. There are no hidden fees or charges.
This is all part of the comprehensive and transparent reporting our members get, which shows them, in detail, what’s in their KiwiSaver account, where it’s invested and how it’s performing.
5. Who are these people?
There are a wide range of KiwiSaver providers, from insurance companies and banks to boutique investment houses. Some have in-house teams who manage their KiwiSaver scheme’s investments, others outsource to specialist firms. Make sure you know who’s involved in your investments, and that it feels right to you. You should be able to find this information in the product disclosure statement or website for your KiwiSaver scheme.
The Kiwi Wealth KiwiSaver Scheme has been around since the start of KiwiSaver 10 years ago and we think we’ve only gotten better with age. We’re 100% New Zealand owned and operated and every cent we make stays right here in New Zealand. We’re Kiwis committed to making Kiwis better off.
More than 170,000 members with over $3 billion funds under management trust the Kiwi Wealth KiwiSaver Scheme to help look after their retirement. With Kiwi Wealth, you can plan the retirement you want, get the tools you need, and with our expertise your KiwiSaver account could make a big difference to your retirement lifestyle.
The information provided, or any opinions expressed in this article, are of a general nature only and should not be construed, or relied on, as a recommendation to invest in a particular financial product or class of financial products. You should seek financial advice specific to your circumstances from an Authorised Financial Adviser before making any investment decisions.
A disclosure statement required under the Financial Advisers Act 2008 is available, free of charge, from your GMI Wealth Adviser or on request by calling 0800 427 384.
Kiwi Wealth Limited is the Issuer and Manager of the Kiwi Wealth KiwiSaver Scheme (the Scheme) and is a related company of Kiwibank Limited. Kiwibank is a distributor but is not an issuer of the Scheme. The Product Disclosure Statement for the Scheme is available from kiwiwealth.co.nz.