KiwiSaver
"Kiwisaver is a life changer for a whole generation."
The advent of KiwiSaver means a whole generation will have retirement funds who would be highly likely to retire with little or no savings.
It has also proved to be an enabler and pathway into home ownership.
It's important to choose who looks after your money
We work with a NZ owned KiwiSaver specialist provider, Generate KiwiSaver. They have a particular focus on performance.
Make the effort. get the right type of fund for you. Use this easy questionaire to help you decide.
Make sure you use the correct tax rate. See here for guidance.
What difference does it make who I go with?
Quite a lot!
Different returns acheived can make a huge difference to you.
For instance a 35 year old on $50,000 per year contributing 6%, plus his employer's 3%
Let's say he has $20,000 in KiwiSaver by now.
An average net return only one percent higher over the next 30 years would mean $101,694 more to retire on
Some funds are index trackers, They simply invest in a cross section of the market.
Generate KiwiSaver aims to beat the market and uses an active investment strategy to acheive that outcome. See.here to learn more.
And see here and here for their results
- Number 1
- Performing KiwiSaver Fund in the Morningstar 'NZ Multi-Sector' Moderate Category for the year to 30 September 2018. (Generate Conservative Fund)
- Number 2
- Performing KiwiSaver Fund in the Morningstar 'NZ Multi-Sector' Aggressive Category for the year to 30 September 2018. (Generate Focused Growth Fund)
- Number 3
- Performing KiwiSaver Fund in the Morningstar 'NZ Multi-Sector' Growth Category for the year to 30 September 2018. (Generate Growth Fund)
What about fees?
It's all about returns to you.
After fees and after taxes (make sure you have the correct Prescribed Investor Rate)
There's really not much point in chasing 1% lower fee if the return is 2% lower, is there?
Do keep track of your fund's fees but more importantly do keep track of their total return after fees and taxes.
Disclaimer.
Past returns do not predict future returns
What about my Aussie Super?
If you have Australian super you wish to transfer simply tick the box when you join and they'll get started on it.
Please note that the Australian Government insists that Australian Super funds transferred to KiwiSaver can not be used for 1st home withdrawal.