Choosing the right KiwiSaver fund for your life stage

KiwiSaver isn’t set-it-and-forget-it. Find out the importance of regularly reviewing your KiwiSaver fund choice, and the best times in life to do it.

3 minute read

Our lives are constantly changing, and it’s important that our KiwiSaver fund choice keeps up with those changes too. For example, you could find that a potentially high-returning growth fund is right for you at one stage – but that you’d be better off in a lower-risk conservative fund at another.

KiwiSaver schemes generally have a range of funds. Each fund is designed to consider risk and return in different ways. Picking the wrong fund might mean you end up with less in your retirement pot than you want, or that you worry about the risks you are taking along the way. Your KiwiSaver fund choice could be the second most important KiwiSaver decision you make – after deciding to join of course.   

Here are a few of the most common times in your life when you might want to think about your KiwiSaver fund choice.

When you’ve just started your first job

Whether your parents initially opened a KiwiSaver account for you as a child, or you’re signing up for the first time, now is a great moment to think about the right KiwiSaver fund for you.

You might be aware that KiwiSaver could help you buy your first home someday. However, that day probably still feels a long way off. Because time is likely on your side, a growth fund could be a great way to grow your balance and help you build that deposit. Just keep in mind the potential risks that come with higher risk funds. The value of these funds can go up or down significantly in a short space of time, weeks or days even.

Once you’ve built up a deposit and are ready to buy your first home, you might want to consider a lower risk option. The BNZ KiwiSaver Scheme has a First Home Buyer Fund for those who plan to withdraw their savings in the next three to five years.

 If you’ve just used KiwiSaver to buy your first home

In the lead-up to withdrawing from your KiwiSaver account for your first home, you may have chosen a lower-risk fund, to help your account weather any volatility. But after you’ve bought your first home, you might consider switching into a growth fund.

With time on your hands to ride out any market ups and downs, the possible rewards of investing in a higher growth fund may well be worth the possible risk, and it could really help to grow your retirement pot.

When you’ve turned 60 and are close to retirement age

Another good time to review your fund is when retirement is just around the corner. For example, if you're in a higher risk fund, you might want to consider moving to one with a lower risk. This will give you a little more certainty around your savings, so you can plan ahead for the retirement lifestyle you want and can afford.

Just like our lives go through periods of change, so do our investments. That’s why it’s important to review your KiwiSaver fund choice regularly. You might want to consider using our KiwiSaver calculator to see what impact changing your fund, or contribution rate, could have on what savings you could have at retirement, or to put towards buying your first home.

Every year try to put aside some time to take stock of where you’re at in life, what you want in the future, and how much risk you’re willing to take. Then you can make sure your KiwiSaver approach is all lined up, and ready to help you reach your financial goals.

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BNZ Investment Services Limited, a wholly owned subsidiary of Harbour Asset Management Limited, is the Issuer and Manager of the BNZ KiwiSaver Scheme. Download a copy of the BNZ KiwiSaver Scheme Product Disclosure Statement PDF 1.1MB, or pick up a copy from a BNZ branch.

Investments in the BNZ KiwiSaver Scheme are not bank deposits or other liabilities of Bank of New Zealand (BNZ) or any other member of the National Australia Bank Limited group. They are subject to investment risk, including possible delays in repayment. You could get back less than the total contributed. No person (including the New Zealand Government) guarantees (either fully or in part) the performance or returns of the BNZ KiwiSaver Scheme or the repayment of amounts contributed. National Australia Bank Limited, the ultimate owner of BNZ, is not a registered bank in New Zealand but a licensed bank in Australia and is not authorised to offer the products and services mentioned on this webpage to customers in New Zealand.

BNZ Investment Services Limited (BNZISL) uses the BNZ brand under licence from Bank of New Zealand, whose ultimate parent company is National Australia Bank Limited. No member of the FirstCape group (including BNZISL) is a member of the NAB group of companies (NAB Group). No member of the NAB Group (including Bank of New Zealand) guarantees, or supports, the performance of any member of FirstCape group’s obligations to any party.

This article is solely for information purposes and is not intended to be financial advice. If you need help, please contact BNZ or your financial adviser. Neither BNZ nor any person involved in this article accepts any liability for any loss or damage whatsoever which may directly or indirectly result from any information, representation, or omission, whether negligent or otherwise, contained in this publication.