Comparing KiwiSaver Providers: Tips for Finding the Right Fit
It’s no secret that financial matters can be stressful. Finances are very important to ensure you have a good quality of life, enough savings for your future goals, a comfortable retirement and so on. Luckily, you don’t have to manage your finances alone, and there are ways you can smartly save up to secure a great future for yourself.
Enter KiwiSaver, a well-known voluntary retirement savings programme that’s been running since 2007. KiwiSaver offers a secure pathway for Kiwis to save up for their golden years.
However, using KiwiSaver isn’t as easy as picking a plan and suddenly having a big retirement fund. You’ll need to select the right provider for your situation, which isn’t exactly easy considering everyone’s circumstances and goals are different.
No worries, we’re here to help. Continue reading to learn more about KiwiSaver and what you should do before you pick your provider.
What Is KiwiSaver?
Before we look into what you should do before choosing a provider, you should first understand what exactly KiwiSaver is.
In essence, KiwiSaver is a government initiative aimed at helping New Zealanders save for retirement. A shocking number of New Zealanders are unprepared for their retirement, so KiwiSaver is a way to help people save up for their future in a way that’s easier to manage and understand.
KiwiSaver offers a range of investment options, allowing Kiwis to tailor their investment strategy based on their risk tolerance and individual financial goals. Your contributions to KiwiSaver will be deducted from your wages, making it an easy and convenient way for you to save without much hassle or stress on your part.
Tips For Finding The Right KiwiSaver Provider
One immediate thing that you may realise when getting started with KiwiSaver is just how many options there are. While having plenty of choices is a good thing, it’s really a double-edged sword - you can pick one that’s right for you, but finding that ideal choice can be a struggle when you have so many to consider.
Think about these tips when picking your provider:
Define Your Financial Goals. Before you do anything, take some time to think about your situation and clearly define your goals. Ask yourself, ‘What do I want from KiwiSaver?’ Understanding your personal objectives will help you select a provider that aligns with your needs.
This is an absolutely crucial step because everyone’s financial circumstances and goals are unique. You need a plan that’s right for you, so you’ll need to take a highly personalised approach to your KiwiSaver search.
Consider Any Fees. When comparing KiwiSaver providers, always keep an eye on any fees associated with their funds. Remember that while some fees may seem small and inconsequential at first, they can have a significant impact on your long-term returns.
Understand Your Risk Profile. Your risk profile will play a very important role in determining which KiwiSaver provider is best for you. Basically every financial endeavour comes with some level of risk, but some are far riskier than others. Not everyone can handle high-risk options, and you’ll want to find an option you’re comfortable with.
Plans with lower returns are often less volatile and therefore less risky. Still, riskier funds may have the potential to provide you with higher returns at the cost of being less predictable. Carefully consider your risk profile, stay cautious and thoroughly think through your options.
Compare Available Fund Types. KiwiSaver’s funds come in various types, each with risks and opportunities. You need to find one that matches your risk tolerance and is compatible with your finances.
Work With An Experienced NZ Financial Adviser. If you’re not well-versed in financial terms, all of this may seem way too complex for you to be comfortable with. Naturally, this can make your entire KiwiSaver ordeal much more frustrating, time-consuming and stressful than it needs to be.
This is why we at Future Wealth are here to help. We understand how complicated finances can be, especially for those who aren’t used to investing or creating thorough financial management plans, and we want to assist you. Working with our financial advisers can allow you to understand your situation and your options more clearly, helping you to find a KiwiSaver provider that you’re happy with.
Securing Your Financial Future
KiwiSaver is a great tool that helps countless New Zealanders build up funds for their personal goals, but to use this tool to its full potential, you need to take the right steps and make the ideal choice for your life. While that may sound difficult, we at Future Wealth are here to assist you. Rather than offering you generic advice, we’ll work together to examine your current finances, your goals and any other relevant factors so we truly find the right provider for you.
If you’re ready to get started, or if you have any questions for us, please feel free to call us on 027 308 3765 or use our contact page.
Together, we can find a KiwiSaver provider that aligns with your goals.