Kiwisaver – if you’re young, get engaged! You’ll be glad you did.

29 June 2017

Too many people give too little thought to Kiwisaver and are still in their default fund with the default options!

What does this mean? If you’re young, you could end up with tens of thousands of dollars less than you otherwise would. The difference could even be in the six figures. The video above illustrates this.

UPDATE: A week after I posted this, The NZ Herald reported on Morningstar figures showing “an employed person on the median wage would already have $5,000 less in their KiwiSaver account by being in a conservative fund compared to a growth fund over the last 10 years”. Extrapolate this over another few decades, and consider that as people’s balances continue increase due to their contributions and their employers’ co-contributions, and you can see this scenario playing out in practice.


default funds, Kiwisaver, retirement

About the author 

Sonnie Bailey

In his spare time, Sonnie likes telling people that he’s a former Olympic power walker, a lion tamer, or that he is an orthodontist. He is none of those things. In reality, Sonnie is a financial planner based in Christchurch. Through his business, Fairhaven Wealth (www.fairhavenwealth.co.nz), he provides independent, advice-only, fixed-fee financial planning services. Sonnie is a “recovering lawyer”: he has specialised in trusts and personal client work. He has also worked as a financial services lawyer for many years.

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