Longer-term investing: the things you need to think about

Whether saving for retirement or other long-term investments, you need clear goals and a solid plan. Find out how to get started.

3 minute read

Growth takes time - and lots of it. So when considering long-term investing options, like the BNZ KiwiSaver Scheme or other managed fund investments like YouWealth, there are a range of important factors to keep in mind. Like your goals, what your investment needs to do for you, and what you need to do for it.  If those goals are longer-term – like saving for retirement – then the sooner you start investing, the better.

Define your goal

As with all investments, it helps to have a clear idea of what you want to achieve. If you’re saving for retirement, have a think about what sort of retirement lifestyle you’d like to have. Once you’ve painted a picture, do some research to find out what funding that lifestyle might cost, using a tool like sorted.org.nz.

Once you’ve got a rough dollar-value attached to your dream lifestyle, you can work out how hard both you and your investment will need to work to fund it. Our BNZ KiwiSaver Scheme calculator and YouWealth calculator can help you with that. 

Then determine how long you’re looking to invest for

Think about when you’ll want to use your invested money. If you’re willing to put your money away for a long-term period – say, 20 years or more – then your needs will likely be a bit different to a shorter-term investment. For a start, time is on your side. But even so, it’s vital to make the right choices now, so that you achieve the outcome you were hoping for.

Figure out the level of risk you’re comfortable with

Just like life, investments come with an element of risk. But also like life, there are ways you can reduce those risks. And if you go a step further and choose to embrace them, they should pay off over the recommended term of your investment.

Both the BNZ KiwiSaver Scheme and YouWealth managed funds offer a number of options, each with different levels of risk and potential return. With the exception of the BNZ KiwiSaver Scheme Cash Fund which is invested 100% in income assets, and the BNZ KiwiSaver Scheme High Growth Fund which is invested 100% in growth assets, these funds have different mixes of lower-risk/potentially lower-return ‘Income’ assets, like bonds, and higher-risk/potentially higher-return ‘Growth’ assets, such as shares.

For longer-term investments, it’s more common to start out with a fund that has a higher allocation to growth assets – then, as retirement gets closer, to switch to a lower-risk fund. Keep in mind that if you have 20-plus years until you call on your investment, you’ll likely have more time to ride out (and recover from) any potential market ups and downs. Whatever path you choose to take, make sure you’re aware of - and comfortable with - the level of risk involved.

How much should you invest?

How much you invest will depend on your life stage, and what you feel comfortable putting away. With YouWealth, you have the flexibility to choose exactly how often and how much you contribute. 

With KiwiSaver, the default contribution rate for those earning a salary or wage is 3.5%* - but you can choose to contribute 4%, 6%, 8% or even 10% of your pay, and voluntary contributions are also an option. If you're self-employed, or not currently working, you can choose how much you contribute.

While 3.5%* probably sounds temptingly affordable, there’s a chance it may not be enough to help you achieve your financial goals. Our BNZ KiwiSaver Scheme retirement calculator can help you see how much making small changes to what you contribute now, might make a big difference to your KiwiSaver balance when you retire.

Lastly, try not to just set it and forget it

It’s important to regularly review how much you’re contributing towards your investment, and to check your fund choice as well. Consider whether you can make extra contributions - if you change jobs or score a promotion, which could be the perfect time to think about your payments.

Regular contributions don’t just keep nudging your balance northwards. Over 20-plus years, they’ll also be hard at work buying bonds and shares in varying market conditions. When the value of those assets drops, regular contributions means you can buy them at a reduced cost, and then reap the rewards when the market rises again. That’s one of the benefits of long-term investing coupled with a regular investment; you have the potential to benefit from both the ups and downs in markets. 

Both the market and your investment will inevitably change over time. So it’s important to set a yearly reminder to check in on your investment, and make sure you’re still in the right type of fund. It's also a chance to check your contribution rate and think about whether that needs changing.

When it comes to longer-term investing, the sooner you get started, the better off you’ll be in the long run. Put in time to make a plan today, and your future self will thank you for it.


*The default minimum contribution rate for employees and employers has increased from 3%. This change is happening in two stages. The first increase from 3% to 3.5% took effect from 1 April 2026. The second increase from 3.5% to 4% will be effective from 1 April 2028. KiwiSaver members will be able to apply to IRD for a temporary rate reduction to keep their contributions at the current rate of 3%. Temporary rate reductions will be for a maximum period of 12 months, but members will be able to re-apply to IRD for further rate reductions. During a temporary rate reduction, employers may also contribute at the reduced rate of 3%.

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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 Bank of New Zealand 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 article.

BNZ Investment Services Limited, a wholly owned subsidiary of Harbour Asset Management Limited, is the Issuer and Manager of the BNZ KiwiSaver Scheme and YouWealth. Download a copy of the Product Disclosure Statements:

• BNZ KiwiSaver Scheme Product Disclosure Statement (PDF 1.1MB)
• YouWealth Product Disclosure Statement (PDF 1.4MB)

Investments in the BNZ KiwiSaver Scheme and YouWealth 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 YouWealth, 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.