KiwiSaver - what do you know?

Around 1.3 million New Zealanders are signed up to KiwiSaver. But do they know enough about the scheme or fund they’re investing in?

In a recent research study, more than half of all KiwiSaver members surveyed said they didn’t know much, or knew hardly anything, about the scheme they were in. And nearly half thought their investments had a government guarantee.

So what are the key things you need to know about your KiwiSaver scheme?

First, it’s important to know that there is no government guarantee on KiwiSaver schemes.

Registered KiwiSaver schemes are, however, overseen by the Government Actuary, who is responsible for making sure KiwiSaver providers follow the rules.

The six ‘default’ providers – who will invest your savings if you don’t choose a provider yourself – have to meet extra reporting requirements and are monitored more closely than other KiwiSaver providers.

This means it’s important to know who runs your KiwiSaver scheme. Is it one of the default providers? Is it a company you have confidence in?

You also need to know how much risk you are prepared to take with your savings, so you can choose the right type of fund. Each KiwiSaver fund has a different level of risk, because each has a different balance of investments, between for example fixed interest, property or shares.

It’s a good idea to review the KiwiSaver fund and scheme you’re in from time to time to make sure they still meet your needs – say once a year or following a major change in your life. Sorted's free calculators can help you do this.

Use the Investment recommender to see what types of investments might suit you. Is there a match with your current KiwiSaver fund?

You can also use the KiwiSaver fees calculator to see what fees are charged by KiwiSaver providers for different funds and schemes.