What Is The Best KiwiSaver Provider and Fund for me?

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“Hi everyone, Just looking for some kiwi saver advice. I am originally from Scotland and have been in NZ for over 4 years now (have got residency) and am looking to be here for the foreseeable future (5 years or more). I want to open a kiwi saver account but am just a bit lost on where to start. I am unsure if I’ll be here forever, but would like to put a deposit on a house within the next 5 years so would like to use my kiwi saver to help me to do that. I want to be putting in 10% of my wage as I have not been paying towards a pension etc in those 4 years. Wondering if anyone has any advice on which is the best kiwi saver to go for now and whether I should be getting a high risk or low risk kiwi saver? Any advice us welcome; thanks! 🙂”
(Original question on Reddit)
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It’s great that you’re thinking about opening a KiwiSaver account and saving for your future, including a potential house deposit in New Zealand. To help you begin here are some practical tips you could consider to help you start.

Choose a KiwiSaver provider

There are many KiwiSaver providers in New Zealand, and each offers different investment options and fees. You can compare KiwiSaver providers and funds by researching the providers or using National Capital’s website, where all the information is free. Knowing your different options before committing to one provider is important, so take some time to see which ones align with your goals and values.

Consider your investment goals

Since you plan to use your KiwiSaver savings for a house deposit within the next five years, you could consider a conservative or balanced investment option if you don’t want your balance going up and down so much. These options offer lower risk but lower returns compared to high-risk options. However, if you don’t mind the volatility of the market and want to maximise your KiwiSaver returns, you may consider choosing aggressive or growth fund options, as these will give you better returns but with more risk. While high-risk funds can potentially offer higher returns over the long term, they also come with greater volatility, which may not be suitable for short-term goals like buying a house.

Maximise your contributions

Since you plan to contribute 10% of your wage to KiwiSaver, you’re already on the right track. You can also consider making voluntary contributions to your KiwiSaver account to boost your savings. You may be eligible for government contributions and employer contributions as well. The government will contribute up to $521.43 each year to your KiwiSaver if you contribute at least $1042.86 in the period from 1 July to 30 June. This can be a good way to save for your first home.

Explore first-home benefits

If you plan to use your KiwiSaver savings for a house deposit, you may be eligible for the KiwiSaver HomeStart grant. This grant provides up to $10,000 for first-home buyers who meet certain criteria. You can also withdraw your KiwiSaver savings to put towards your first home purchase.

Seek Financial Advice

It’s always a good idea to consult a financial advisor who can provide personalised advice based on your financial situation and goals. They can help you determine the best KiwiSaver provider and fund option for your specific needs and goals, considering your long-term and short-term goals. So don’t hesitate to get in touch with National Capital, who can guide you in taking your first step in KiwiSaver.

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.