KiwiSaver: Set and Forget, or Time to Get Personal?
Is your KiwiSaver strategy truly working for you, or has it become a neglected "set and forget" account? As KiwiSaver balances continue to grow, becoming the second-largest asset for many New Zealanders after their homes, it's crucial to consider whether a more personalised advised approach could benefit your financial future.
Why taking control matters
KiwiSaver is no longer just a simple savings tool. With total assets under management now more than $100 billion NZD, it has become a cornerstone of retirement planning. However, many people still treat it as a passive investment, missing opportunities to optimize their returns or align their fund choices with their financial goals. Here’s why taking control is essential:
Growing Balances: As your KiwiSaver balance grows, so does the impact of your investment decisions. Small adjustments today can lead to significant gains in the future.
Life Changes: Your financial needs and goals evolve over time. Whether you’re buying a first home, changing jobs, or approaching retirement, your KiwiSaver strategy should adapt to reflect these changes.
Market Volatility: Economic conditions fluctuate, and having access to professional advice can help mitigate risks and ensure you stay on track.
The role of personalised advice
Personalised financial advice goes beyond generic recommendations. It considers an individual's unique circumstances, such as income levels, debt obligations, retirement goals, and risk tolerance. A Financial Adviser will help with the following:
Tailor Recommendations: Advisers can provide guidance on contribution levels, fund selection, and risk assessment based on your specific financial situation and goals.
Avoiding mistakes: Fear-driven decisions, triggered by fluctuations in KiwiSaver balances, can disrupt long-term plans and lead to poor retirement outcomes. A financial adviser can offer guidance, support, and deeper expertise, helping you develop better financial habits.
Performance Monitoring: While chasing short-term returns is discouraged, regular performance reviews are essential. An adviser can help interpret performance data in the context of broader market trends.
Holistic Planning: KiwiSaver should be viewed as part of your overall financial strategy. An adviser can integrate it with other investments, insurance needs, and estate planning.
While KiwiSaver's "set and forget" nature has made it accessible to many New Zealanders, the growing balances and increasing complexity of the scheme call for a more personalised advice approach. Regular check-ups with a qualified financial adviser can help ensure your KiwiSaver is working as hard as you are, maximizing your potential for a comfortable retirement.
Remember, KiwiSaver is more than just a savings account – it's a powerful investment tool that deserves your attention and care. By treating it with the importance it deserves, you're taking a crucial step towards securing your financial future.
Disclaimer
Bradley Nuttall Otago Limited believes the information in this article is correct, and it has reasonable grounds for any opinion or recommendation found within this article on the date of publication. However, no liability is accepted for any loss or damage incurred by any person as a result of any error in any information, opinion or recommendation in this article.
Nothing in this article is, or should be taken as, an offer, invitation or recommendation to buy, sell or retain any investment in or make any deposit with any person.
The information contained in this article is general in nature. It may not be relevant to individual circumstances. Before making any investment, insurance or other financial decisions, you should consult a professional financial adviser.
This article is for the use of persons in New Zealand only.
The views and opinions expressed in this article are those of the author and are not necessarily those of Bradley Nuttall Otago Limited