How to Choose the Best KiwiSaver Provider in New Zealand: Key Factors to Consider
Saving for your future is a fundamental responsibility, and starting to save now can help you reach your primary financial objectives. KiwiSaver is a savings programme that’s helped countless Kiwis save up for goals like creating a retirement nest egg, saving up for a home and so on. For best results, you’ll need to find the best KiwiSaver provider for you.
Who Are KiwiSaver Providers?
KiwiSaver is a voluntary saving scheme, and KiwiSaver providers are entities like banks and investment companies that offer investment funds. There are various funds available, and you can change your selected fund at any time.
You can pick your fund from a provider’s scheme to begin working towards your savings goals. If your employer enrolled you into a fund, then you aren’t limited to their scheme and can change if you’d like to.
How Do You Choose The Best KiwiSaver Provider, Scheme And Fund For You?
Many factors go into which fund is best for you. It’s essential to understand that while KiwiSaver streamlines the savings process, you still need to put active effort into your savings to maximise your results. Finding the right KiwiSaver fund is a fantastic start, and you should continue to save your money even after you’ve chosen a great fund.
How do you choose? Here are just a few ways you can make a good choice:
Understand Your Options. There are different types of funds with varying levels of risk and rewards. While some are steady and offer reasonable results, others are high-risk but have the potential for much higher results.
KiwiSaver funds are separated into five categories, from least risky to most risky:
Defensive.
Conservative.
Balanced.
Growth.
Aggressive.
Which fund type suits you the best will depend on what level of risk you’re comfortable with and how long you’d like to invest.
Understand Your Personal Risk Tolerance. It’s very important that you understand your risk comfort levels before you choose from the best KiwiSaver providers.
‘Risk’ indicates the potential fluctuations in your fund's performance and value. High-risk funds can change greatly, with the value sharply rising or dropping over time. On the other hand, low-risk funds are much more steady and predictable. Higher-risk funds are more likely to have higher returns, but the high-risk means that there’s also a chance that their values can drop quickly. Lower-risk funds don’t have as much of an opportunity for high returns, but they’re predictable and safer.
How comfortable are you with fluctuations? If unpredictable fluctuations make you distressed, you should choose a lower-risk fund.
Check Fund Fees. All funds charge fees, including membership fees and management fees. These numbers usually correlate to your investment’s value. Fees are calculated and deducted every day.
Naturally, fees will eat into your overall savings, so it’s vital to be smart about how much you’re willing to pay for the fun you want to choose. Always compare fees when looking at the best KiwiSaver providers.
Evaluate Fund Performance. When comparing performance, always only compare funds of the same category. For instance, if you want to choose a balanced fund, then only compare it to other balanced funds. Look into the fund’s performance and see how steadily it’s grown. We can predict how well a fund will do in the future by checking its history.
Think About User Experience. User experience is very important, as the more streamlined and intuitive your experience, the easier it will be to save money and check on your fund’s performance. Check how you can view your KiwiSaver balance and review how you can change your fund or scheme.
Evaluate Customer Service. What kind of customer service do the best KiwiSaver providers offer? Are they readily available to help you if you need assistance? Saving money is important, so it’s vital that you have help when you need it.
Consider Brand Values. Aside from schemes and funds, think about the providers themselves. Do you like them as a brand? Do you have an issue with any of their business practices? Finally, do you think the brand will last for a long time?
Choosing The Best KiwiSaver Provider, Scheme And Fund For You
We know that navigating the complex world of savings and investments can be confusing, and we also know how important your savings are to you. So, we at Future Wealth are here and ready to help. Our financial specialists have assisted many clients just like you in finding the right funds for them, and we look forward to helping you as well.
Professional help can take much of the stress out of saving, guiding you towards the right path while empowering you to make a decision you’re happy with. If you’re ready to get started, please call us on 027 628 8010, send us a message or book your free chat online.
Future Wealth: Let’s discover the best way to improve your future.