When deciding to stick with ANZ or switch KiwiSaver providers, assess your goals, the time of your goal, compare fees and performance among providers, consider ethical investing, and evaluate customer service. Seek advice for personalized recommendations.
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“We have just purchased our first home, and my kiwisaver balance is now down to about 1.5k, so I thought it was a good time to look at some alternative kiwisaver providers. My current kiwisaver is with ANZ. Do you have any tips? Recommendations? Do I move or stay with ANZ?”
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I can certainly provide some general information and considerations to help you decide whether to stay with ANZ or switch to a different KiwiSaver provider.
Assess Your Current Situation: With the purchase of your first home and a reduced KiwiSaver balance of approximately 1.5k, it’s essential to assess your financial objectives and risk tolerance. Understand your short-term and long-term financial goals, as this will guide your decision on whether to stay with ANZ or explore other KiwiSaver providers. For example, if your primary focus is on retirement savings, you have quite a long time until you have access to the money again, apart from few exceptional circumstances. Meaning you can make the long time horizon an asset because the compound interest will be substantial. Does ANZ have a fund suited to your time horizon and investment appetite, is important to consider.
Compare Fees and Performance: A critical factor in choosing a KiwiSaver provider is the cost associated with your investment. ANZ and other providers may have varying fee structures. Carefully compare the fees ANZ charges with those of alternative providers, and consider how these fees may impact your returns over time. Additionally, examine the historical performance of ANZ’s KiwiSaver funds and the performance of funds offered by other providers. Keep in mind that past performance doesn’t guarantee future results, but it can offer insights into how a fund has handled different market conditions.
Consider Ethical and Sustainable Investing: If you strongly prefer ethical or sustainable investing, it’s worth exploring KiwiSaver providers that align with your values. Some providers specialise in socially responsible investments, offering funds prioritising environmental, social, and governance (ESG) factors. Make sure the provider you choose offers investment options that resonate with your ethical principles.
Evaluate Customer Service and Exit Fees: Quality customer service is vital for a smooth KiwiSaver experience. Assess the level of customer support offered by ANZ and potential new providers. By carefully weighing all these factors, you can make an informed choice about whether to remain with ANZ or transfer your KiwiSaver funds to a different provider. If you’re uncertain, consider seeking advice from a financial advisor who can provide personalised recommendations based on your specific financial circumstances and objectives.
Hope this helps.
Regards, Clive Fernandes (Financial Adviser)
Director – National Capital
Disclosure: I am the director of National Capital, a KiwiSaver advice firm. The views expressed in this article are the views of the author. The information provided is of a general nature and is not intended to be personalised financial advice. You may seek appropriate financial advice from a Financial Adviser to suit your individual circumstances or contact National Capital.
