With a set-and-forget service like KiwiSaver, it can be all too simple to choose a fund, and.... forget about it! But it’s really important to check in periodically and make sure that you’re still in a fund that meets your needs.
Here’s what you should look for:
Fund Type The money you put into KiwiSaver will be invested in line with the type of fund you’ve chosen, which range from the defensive to the aggressive. The different fund profiles dictate the degree of risk you’re prepared the assume. Generally, when you’re close to needing to access your funds, you might prefer a more defensive fund, that is, one making low-risk investments.
Fees Your fund might charge you a fixed membership fee, or a percentage of your account balance. These fees can also increase over time. Take the time to crunch the numbers and make sure you’re not spending any unnecessary money on fees.
Services Different funds provide different optional extras, ranging from member communications, extra advice and help with specific situations, like transferring super from New Zealand. Your fund should list anything extra they offer on their website.
Types of Investment Along with the different investment strategy profiles, some funds take a stance on certain types of investments. These might typically include not investing in tobacco or weapons. If this is important to you, make sure you find a fund with an investment profile that you agree with.
Wondering where to get started with comparing the different fund options? The Government has made your job easier, with the KiwiSaver (Periodic Disclosure) Regulations introduced in July 2013. These regulations mean that each fund has to lodge regular, standardised statements, and they are a great place to start your review process. And we can help simplify the process.
Talk to us about your retirement savings fund and make sure you have the structure in place for your future.