Dec 13, 2017 9:56:47 AM

How is your KiwiSaver performing?

Topics: Kiwisaver, LVR, new zealand property, new zealand real estate, first home buyer, mortgage adviser 0

Tracking your KiwiSaver’s performance is an important part of managing your investment. With a range of providers and funds to choose from, even the smallest difference in annual earnings can quickly add up to a significant amount. To get the most out of your fund, it’s important you review your KiwiSaver at least every year.

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Don’t know, don’t care

Into its tenth year of operation and more than 75 per cent of New Zealand’s working population are already enrolled in KiwiSaver. While many smart savers are actively tracking their KiwiSaver’s performance, too many don’t know where their funds are invested or don’t care.

Research undertaken by Westpac in October 2017 shows that out of the 1000 KiwiSaver members interviewed, just 44 per cent wanted to know where their KiwiSaver funds were invested, 16 per cent did not want to know, and 40 per cent did not care. Those figures could change though, as being able to track and compare KiwiSaver funds becomes a little easier. 

An online tracking tool

KiwiSaver Tracker is an interactive tool that lets you access and compare basic fund information using an online platform. Released by the Financial Markets Authority, the tracker uses information that KiwiSaver providers share with investors through their quarterly fund updates, along with information from the Companies Office’s Disclose Register.

This information is automatically incorporated every three months to provide a real-time snapshot of risk profile, returns and fees for each fund. Savers are able to track how hard their fund is working and compare it to other funds. More information about the FMA KiwiSaver Tracker can be found on the FMA website.

Tracking your investment

As you move through life, your investment needs change so it’s important you keep track of how your KiwiSaver fund is performing and make any necessary adjustments over time.

As a young investor, you may choose to invest in a riskier, share-based growth fund with a view to long-term growth, while closer to retirement age a more conservative, stable fund makes good financial sense.

With the start of a new year fast approaching, it’s a good time to take a closer look at your KiwiSaver investment and set some plans in place. Get in touch with a Mortgage Express adviser to review your KiwiSaver and help you decide which fund best fits your needs.

References:

https://www.tvnz.co.nz/one-news/new-zealand/kiwisaver-customers-should-keep-closer-eye-their-investments-says-watchdog

https://www.stuff.co.nz/business/money/99042544/online-tool-launches-showing-the-bite-fees-take-from-kiwisaver-returns

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11945842

http://www.nzherald.co.nz/personal-finance/news/article.cfm?c_id=12&objectid=11951218


Disclaimer:

While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken by Mortgage Express Limited for any errors or omissions. This publication does not constitute personalised financial advice. It may not be relevant to individual circumstances. Nothing in this publication 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. You should seek professional advice before taking any action in relation to the matters dealt within this publication.

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