KiwiSaver is one of those things that’s easy to set up and easy to forget about. You pick a fund, contributions start coming out of your pay, and life moves on. But the fund that suited you at 25 may not be the right fit at 45 – or 60. Taking a little time to check in on your KiwiSaver investment could make a meaningful difference to where you land.
Christian KiwiSaver Scheme offers three funds – the Growth Fund, the Balanced Fund, and the Income Fund – each designed for different stages of life and different comfort levels with risk.
Here are 10 questions to help you think through where you sit.
1. When do you plan to retire?
How long your money has to grow can be one of the most important factors in choosing a fund. If retirement is still 20 or 30 years away or you plan on keeping your money invested for many years past retirement, you have time to ride out the natural ups and downs of investment markets. If your timeframe is shorter, with less time to recover from any dips in your KiwiSaver savings, this might shift your thinking.
2. How would you feel if your KiwiSaver balance dropped in the short term?
Some funds invest more heavily in growth assets like shares, which can move up and down with markets. If seeing a temporary dip in your KiwiSaver account balance would cause you significant stress or prompt you to act hastily, that’s worth factoring in. A more cautious fund might mean more modest outcomes over time, but give you greater comfort.
3. Are you planning to buy your first home in the next few years?
If you’re eyeing up a first home purchase in the near future, you may be looking to access your KiwiSaver savings sooner than retirement. That alters your timeframe and the level of risk you may be able to take.
4. Has your financial situation changed recently?
A new job, a relationship change, a growing family, a redundancy – life changes can shift your financial priorities. It’s worth revisiting your fund choice whenever something changes in your circumstances.
5. Do you understand what your current fund actually invests in?
It’s surprisingly common to be in a fund without knowing much about how it works or what it holds. Christian KiwiSaver Scheme invests across a diversified range of assets – including shares, fixed interest, private equity, smart energy, forestry, cash, and mortgages – with an ethical screening process applied to selected investments in line with our Ethical Investment Policy. Knowing what your money is doing is a reasonable starting point.
6. What are your long-term savings goals – and how ambitious are they?
Are you hoping for steady, modest growth over time? Or do you have bigger goals that require your KiwiSaver investment to work harder? There’s no right or wrong answer, but your goals should inform your fund choice. The Growth Fund targets medium to high returns over a long timeframe, while the Income Fund takes a more cautious approach that prioritises preserving what you have.
7. Are you comfortable with some uncertainty in exchange for potential long-term growth?
The Growth Fund invests in assets that can increase in value over time but may fluctuate in the short term. This fund asks you to look past short-term changes and stay focused on the long game, in exchange for the potential for a larger reward. Whereas the Balanced Fund provides more modest growth, with fewer ups and downs, and the Income Fund aims to preserve capital.
8. How long will you need the money to last?
As retirement approaches, many people look to reduce their exposure to investment risk. One factor people often forget however, is that they may still have 20 to 30 or even more years of life to live. While a more conservative fund might be an option for some, everyone needs to consider their goals and make sure their money doesn’t run out.
9. Do you want a mix of both growth and income?
You don’t have to choose between one extreme and the other. The Balanced Fund sits between the Growth and Income funds, spreading investments across both growth and income assets. It aims to reduce the impact of market ups and downs while still working towards long-term growth. With Christian KiwiSaver Scheme, you can also split your KiwiSaver investment across more than one fund if that better reflects your situation.
10. When did you last check your fund?
If you can’t remember – that’s your answer. KiwiSaver is a long-term investment, and it doesn’t need constant attention. But a periodic check-in, particularly after major life events or as you get older, is a reasonable thing to do.
Not sure where to start? Our Risk Profile Calculator can help you think through your risk tolerance, and there’s more detail on each of our three funds on the Our Funds page.
The above information is for information purposes only and is not financial advice. Past returns are not a guarantee of future returns. We recommend you seek advice from a licensed financial advice provider when making decisions about your investments.
📩 Christian KiwiSaver Scheme, The Retire Fund, and The New Zealand Anglican Church Pension Fund are managed and issued by The New Zealand Anglican Church Pension Board (trading as Anglican Financial Care). The Product Disclosure Statements can be found here:https://angfincare.nz/news-and-knowhow/forms-and-documents/