Did you actively choose your KiwiSaver fund, or are you still in the default one? 🤔 For many, this "autopilot" approach could mean missing out on hundreds of thousands by retirement.



DEFAULT FUNDS – OFTEN NOT THE BEST FIT



Default funds (usually 'Balanced') might not suit your goals, age, or risk tolerance. Making an active choice is key to maximising your future balance.



HOW TO CHOOSE? KEY FACTORS:



1️⃣ NET RETURNS (AFTER FEES): Look at long-term (5-10 yrs) returns after all fees. Higher net returns compound massively. Hypothetical example: Over 30 years, the difference could be $240k+ (see table/image!).

2️⃣ FUND TYPE & RISK: Younger investors may benefit from Growth or Aggressive funds. Closer to 65? It might be time to shift to something more conservative.

3️⃣ OTHER FACTORS: Consider app usability, reviews, and whether the fund aligns with your values (e.g. avoiding fossil fuels, weapons, tobacco).



KIWISAVER'S REAL ADVANTAGES:



✅ Govt Boost: Contribute $1,042.86+, get $521.43 free! That's like an instant +50% return on your contribution!

✅ 3% employer contribution on top of your pay

✅ First Home Help: Use savings for first home deposit (conditions apply).

✅ Discipline: Automatic saving & investing.

✅ Tax Benefits: Lower PIR tax rate; simple PIE structure.

✅ Savings Protection: Locked in until 65 (mostly) protects retirement funds.

✅ NZ Super Safe: Doesn't affect your NZ Super entitlement.



POTENTIAL DOWNSIDES:



❌ Locked In: Main access at 65 (exceptions exist).

❌ Contributions: Min 3% can be tough on low incomes.

❌ Limited Choice: Fewer options than direct investing.

❌ Rule Changes: Future governments could alter rules.



WHAT TO DO NEXT?



➡️ Check your KiwiSaver NOW! Know your provider, fund type, and its long-term after-fee returns.



➡️ Unsure? Book a complimentary initial chat with me to discuss your situation [https://calendly.com/maxim-sherstobitov/consultation?utm\_source=Reddit](https://calendly.com/maxim-sherstobitov/consultation?utm_source=Reddit)

DISCLAIMER: This is general info, not tailored advice. Investments carry risks; past performance isn’t a future guarantee. Consult a Financial Adviser.

Why the “Wrong” KiwiSaver Fund Could Cost You Big!