KiwiSaver: Finding the Right Fit Without the Headaches

With 39 KiwiSaver providers and over 280 funds to choose from, picking the right one can feel like searching for the perfect pair of shoes—but without a sizing guide. Many Kiwis stick with the bank or default fund they were originally put into and never review their options, potentially missing out on better returns or paying unnecessary fees. This is where advice comes in.

Why Expert Guidance is Key
Professional advice cuts through the confusion, helping you identify the best fund based on your risk tolerance, long-term goals, and even your values. This ensures your KiwiSaver isn’t just ‘okay’— it’s optimised to grow your savings while we handle all the admin behind the scenes, making the process seamless and hassle-free.

The Process: Simple and Effective

1. Complete a Quick Online Form: This form captures essential details like your current fund, risk profile, and financial goals. Takes less than 5 minutes!

2. Analysis & Report: I analyse your existing fund against the KiwiSaver market. This step may suggest sticking with your current setup or making a switch if there’s a better option.

3. Personalised Recommendations: You’ll get clear comparisons and receive advice to ensure your fund is on the right path, with a focus on returns, fees, and provider quality.

4. Implementation & Support: I’ll guide you through any changes and provide ongoing support via biannual reviews, ensuring your KiwiSaver keeps up with your evolving goals.

Why It’s Worth It
Advice ensures your KiwiSaver works for you. By evaluating your options, you can avoid poor returns, providers or funds that don’t fit your goals.

The result? You maximize growth, minimise unnecessary costs, and gain confidence knowing your savings are set up for success—whether it’s a first home, retirement, or long-term investment. Ultimately, expert guidance means more value, better returns, and a clear plan for your financial future.

So, if you’re stuck in the bank fund you were automatically enrolled in or haven’t reviewed your KiwiSaver in a while, let me help you find the best path to a solid financial future.

Taken from Financial Advice NZ Better Behaviours report: Research on the value of financial advice 

Scott Crocker

Who am I?

Hey there! I'm Scott, a proud Husband, Dad, Brother and Son.

I am committed to delivering the highest level of Financial Advice service for my clients. My approach to Financial Advice is built on having a genuine care for my clients which has allowed me to build strong relationships based on trust and transparency.

“The Crew”

Why Financial Advice?

Because I have the opportunity to make a positive impact every day by helping people navigate the complex world of Insurance & Investments.

As a Financial Adviser my purpose is clear: I'm here to help my clients understand the fine print and simplify everything in a friendly and approachable manner. My client’s satisfaction means everything to me, and I genuinely value the friendships and long-lasting support I'm able to offer.

I'm proud to serve a wide range of people from Taranaki and across NZ, from Kiwi businesspeople and established rural businesses to families wanting to protect themselves and their loved ones.

To see what my clients have to say – Click Here.

As a registered Financial Adviser, with a bachelor’s degree from Otago University and a NZ Certificate in Financial Services & Investments, I specialise in the following areas of advice:

·         Personal insurance

·         KiwiSaver Advice

·         ACC CoverPlus and Levy advice

·         Business and rural risk protection

How I Operate:

My business works alongside Abacus Group who have been operating in the financial services industry and Taranaki region for over 30 years. I like to think I bring a different generational perspective and approach to the team. Here I have a fantastic support team and dedicated claim specialists who ensure the best possible outcomes for my clients.

Recognition:

Believe it or not, I love the Financial Advice profession and the difference we make in people’s lives. It was great to be acknowledged for this hard work with the national award for best emerging Adviser (5 years in business) from Financial Advice New Zealand. This award was based on overall service, client feedback and client outcomes:

·         Financial Advice New Zealand – Rising Star Award

The award recognised the brightest talent in the NZ Financial Advice Industry. The winner being someone who demonstrates they provide the highest quality financial advice, deliver an exceptional client experience, and show commitment to their professional and personal development.

 Contact

I would love to connect, call or email me here:

• Mobile: 027 636 1599

• Email: scott@abacusgroup.co.nz

Important Information

Staying the Course

Why advice is key when navigating KiwiSaver in turbulent markets.

By Scott Crocker

In times of economic uncertainty, it's natural to worry about the impact on your KiwiSaver investments. After all, your retirement savings are at stake, and the last thing you want is to lose them during tough times.

While it's tempting to panic and make impulsive decisions, it's important to stay calm and seek professional advice. A KiwiSaver advisor can help you understand the impact of economic downturns on your investments and guide you through the steps you can take to protect them.

Here are some reasons why seeking professional advice is crucial when managing your KiwiSaver during tough times:

1. Understanding the Impact: Economic downturns can have a significant impact on your KiwiSaver investments. A professional advisor can help you understand the impact of market fluctuations and economic conditions on your investments.

2. Reviewing and protecting Your Investments: A KiwiSaver advisor can help you take steps to protect your investments during tough times. This may include adjusting your investment strategy or making changes to your KiwiSaver fund.

3. Making Informed Decisions: It's easy to make impulsive decisions during tough times, but a professional advisor can help you make informed decisions based on your individual circumstances and investment goals.

4. Planning for the Future: KiwiSaver is a long-term investment, and it's important to have a plan in place for managing your investments during both good times and bad. A KiwiSaver advisor can help you develop a comprehensive plan that takes into account your goals, risk tolerance, and time horizon.

In conclusion, managing your KiwiSaver during tough times can be stressful, but seeking professional advice can make all the difference. By working with a KiwiSaver advisor, you can better understand the impact of economic downturns on your investments and take steps to protect your savings for the long term.

5 Hacks to maximise your KiwiSaver contributions

By Scott Crocker

KiwiSaver is a great way to save for your retirement, but many people are unsure how to maximize their contributions. Here are the top five hacks for getting the most out of your KiwiSaver account:

1. Take advantage of your employer's contributions If you're employed, your employer is required to contribute to your KiwiSaver account. By contributing at least the minimum amount required by your employer, you'll receive a matching contribution, effectively doubling your savings.

2. Consider contributing more than the minimum While the minimum contribution rate for KiwiSaver is 3%, you can choose to contribute up to 10% of your gross (before tax) pay. By contributing more, you'll increase your retirement savings and potentially receive higher returns.

3. Choose a growth fund If you're comfortable with taking on more risk, consider choosing a growth fund for your KiwiSaver investments. Growth funds typically invest more heavily in shares and other growth assets, which can result in higher returns over the long term.

4. Consolidate your KiwiSaver accounts If you have multiple KiwiSaver accounts, consider consolidating them into a single account. This can help you avoid paying multiple account fees and make it easier to keep track of your investments.

5. Make additional contributions You can make additional contributions to your KiwiSaver account at any time, which can help you increase your retirement savings even further. Consider setting up a regular contribution or making a lump sum payment whenever you have extra money available.

By following these five hacks, you can maximize your KiwiSaver contributions and achieve your retirement savings goals. Remember to review your investment options regularly and make changes as needed to ensure you're getting the most out of your KiwiSaver account.

KiwiSaver fund roulette

Finding the right fund for your Investment needs

By Scott Crocker

Choosing the right KiwiSaver fund is an important decision that can have a significant impact on your retirement savings. With so many different types of KiwiSaver funds available, it can be overwhelming to decide which one is best for you. Here's a quick guide to understanding the different types of KiwiSaver funds and choosing the right one for your needs.

1. Growth funds: Growth funds are designed for investors with a long-term investment horizon, such as those who are many years away from retirement. These funds are typically invested in higher-risk assets, such as shares and property, with the potential for higher returns over the long term.

2. Balanced funds: Balanced funds are a middle ground between growth and conservative funds, with a mix of higher-risk and lower-risk assets. These funds may be suitable for investors with a medium to long-term investment horizon who are looking for a balance of growth and stability.

3. Conservative funds: Conservative funds are designed for investors who have a shorter investment horizon or who are more risk-averse. These funds typically invest in lower-risk assets such as fixed interest and cash, with lower potential returns but also lower risk.

4. Cash funds: Cash funds are the most conservative KiwiSaver funds, investing primarily in cash and short-term fixed interest investments. These funds are designed for investors who want to preserve their capital and are not looking for high returns.

When choosing a KiwiSaver fund, it's important to consider your investment goals, risk tolerance, and time horizon. If you have a long-term investment horizon and are comfortable with higher risk, a growth fund may be a good option. If you have a shorter investment horizon or are more risk-averse, a conservative or cash fund may be a better fit.

In conclusion, choosing the right KiwiSaver fund is a key factor in achieving your retirement savings goals. By understanding the different types of funds and selecting the one that best fits your needs, you can ensure that your KiwiSaver investments are working for you.

First Home withdrawal scheme

Eligibility & Process explained

By Scott Crocker

The first time you buy a home is a big financial decision, and KiwiSaver can help. KiwiSaver's first-home withdrawal scheme helps first-time home buyers get into a home by letting them withdraw money from their accounts to put towards a deposit.

The KiwiSaver scheme offers a first-home withdrawal program that can help first-time buyers achieve their dream of homeownership.

1. KiwiSaver's first-home withdrawal program allows first-time homebuyers to withdraw funds from their accounts to put towards a deposit.

2. Eligibility criteria include being a member of KiwiSaver for at least three years, purchasing your first home, and intending to live in the property for at least six months.

3. The maximum amount that can be withdrawn is your total KiwiSaver savings (excluding any government contributions and any amount transferred from an Australian complying superannuation fund) and the amount required for the purchase of the property.

In conclusion, the KiwiSaver first-home withdrawal program is a valuable resource for first-time buyers looking to purchase their own homes. By meeting the eligibility criteria and following the process for withdrawing funds from your KiwiSaver account, you can make the most of this opportunity and take one step closer to achieving your dream of homeownership.

KiwiSaver Switching

Will you lose your gains or gain some losses?

By Scott Crocker

It's easy to join a KiwiSaver scheme, but moving from one provider to another can be a bit more complicated. One of the most common concerns for investors is whether they will lose the gains made in their previous fund by moving.

 Firstly, it's important to note that there is always some degree of risk involved when switching KiwiSaver providers. This is because each provider has its own investment strategy and fees, which can affect your returns. Therefore, before making the switch, it's important to consider why you want to move.

Some common reasons are:

1. Poor performance: If a KiwiSaver scheme is consistently underperforming compared to other providers, investors may choose to move to a better-performing scheme.

2. Change in investment goals: If an investor's personal circumstances change, such as a change in risk tolerance or investment goals, they may need to switch to a KiwiSaver scheme with a more suitable investment strategy.

3. Dissatisfaction with provider: If an investor is dissatisfied with the customer service or communication from their current provider, they may choose to switch to a provider that better meets their needs.

4. Ethical Reasons: concerns about the environmental or social impact of the companies in which their current provider invests. They may want to switch to a provider that offers ethical investment options, such as those that focus on renewable energy, sustainable agriculture, or fair labour practices.

 Switching providers can also have its benefits.

For example, if you're not happy with the performance of your current provider, moving to a provider with a better track record could result in higher returns over time. Similarly, if you've experienced changes in your personal circumstances, such as a change in your risk tolerance or investment goals, moving to a provider with a more suitable investment strategy could help you achieve your financial objectives.

 So, what's the bottom line?

Moving KiwiSaver providers is not without risk. However, if you do your research, get advice and choose a provider with a good track record and investment strategy that aligns with your goals, the potential benefits often outweigh the risks. As always, it's a good idea to seek advice from a financial advisor before making any significant changes to your KiwiSaver investments.

KiwiSaver

The 5 most frequently asked questions.

By Scott Crocker

KiwiSaver is a popular retirement savings scheme in New Zealand, but many people still have questions about how it works. Here are the answers to the top five questions New Zealanders have about KiwiSaver:

 How does KiwiSaver work?

KiwiSaver is a voluntary savings scheme designed to help New Zealanders save for their retirement. It works by deducting a portion of your pre-tax income and investing it in a KiwiSaver fund of your choice. You can choose to contribute either 3%, 4%, 6%, 8%, or 10% of your gross (before tax) pay to your KiwiSaver account.

 What are the benefits of joining KiwiSaver?

By joining KiwiSaver, you'll benefit from your employer's contributions (if you're eligible), government contributions (if you're eligible), and potential investment returns. KiwiSaver can also help you save for a first home, as well as provide financial security in retirement.

 How much should I contribute to my KiwiSaver account?

The amount you should contribute to your KiwiSaver account depends on your individual circumstances and retirement goals. A general rule of thumb is to aim for a contribution rate that allows you to save 10-15% of your income for retirement.

 What are the investment options available in KiwiSaver?

There are a range of investment options available in KiwiSaver, including conservative, balanced, growth, and aggressive funds. Conservative funds are generally low-risk, low-return options, while aggressive funds are high-risk, high-return options. Your investment choice will depend on your individual risk tolerance and investment goals.

 When can I access my KiwiSaver funds?

You can access your KiwiSaver funds when you reach the age of 65 or meet certain eligibility criteria, such as purchasing your first home. In some cases, you may be able to access your funds early due to significant financial hardship or serious illness.

 In conclusion, KiwiSaver is a valuable savings scheme that can help New Zealanders save for their retirement. By understanding how it works, the benefits of joining, how much to contribute, the investment options available, and when you can access your funds, you can make informed decisions about your KiwiSaver savings and achieve your retirement goals.

Navigating KiwiSaver

Unpacking the good, the bad & the complicated

By Scott Crocker

Investing your money is an important decision, and with so many options available, it can be overwhelming to choose the right one. One of the most popular investment options in New Zealand is KiwiSaver. How does KiwiSaver compare to other investment options? Let's explore the advantages and disadvantages of KiwiSaver compared to other investment options.

Advantages of KiwiSaver:

1. Employer Contributions: One of the unique features of KiwiSaver is the employer contribution. Your employer is required to contribute a minimum of 3% of your salary to your KiwiSaver account, which can significantly boost your retirement savings.

2. Government Contributions: You may be eligible for a government contribution of up to $521 per year. This is an excellent way to grow your KiwiSaver balance and reach your retirement goals faster.

3. Low Fees: KiwiSaver fees are typically lower than other investment options, which means more of your money goes towards growing your retirement savings.

4. Diversification: KiwiSaver funds are diversified across a range of investments, including shares, property, and bonds. This diversification reduces the risk of investment losses.

Disadvantages of KiwiSaver:

1. Limited Access: Unlike other investment options, KiwiSaver funds are generally inaccessible until retirement age (currently 65 years old). This means that if you need the money before retirement age, you will have limited options.

2. Limited Investment Options: While KiwiSaver funds are diversified, they are limited to the funds offered by your provider. This may not align with your investment goals or risk tolerance.

Overall, KiwiSaver is a great investment option for many New Zealanders. The advantages of employer and government contributions, low fees, and diversification make it an attractive choice for retirement savings. However, it's important to weigh the advantages and disadvantages of KiwiSaver compared to other investment options to determine what is best for your personal circumstances. Consult with a financial advisor to help you make an informed decision

KiwiSaver - Why after fee returns matter

Pay attention: “after fee returns.”

By Scott Crocker

Kiwisaver is a great way to save for retirement, but it's important to understand the impact of fees on your returns. While many people focus on the fund fee charged by their KiwiSaver provider, it's actually the after fee returns that are more important. Here are the top five reasons why:

1. After fee returns show the real returns on your investment: The after fee returns on your KiwiSaver account represent the actual returns you will receive after fees have been deducted. This is important because the fund fee charged by your provider can be misleading, and may not accurately reflect the actual returns on your investment.

2. Fund fees can be high, but after fee returns can still be positive: Some KiwiSaver providers charge high fund fees, which can make it seem like your returns will be lower. However, even with high fees, some funds can still generate positive after fee returns, meaning you will still make money on your investment.

3. Fund fees can eat into your returns over time: Even if the fund fee charged by your provider seems small, it can add up over time and eat into your returns. By focusing on after fee returns, you can ensure that you are getting the best possible returns on your investment.

4. After fee returns help you compare funds: When comparing different KiwiSaver funds, it's important to look at the after fee returns rather than just the fund fee charged. This will give you a more accurate picture of how each fund is performing, and will help you make an informed decision about which fund to invest in.

5. After fee returns are a better indicator of long-term performance: When it comes to investing for retirement, it's important to focus on the long-term performance of your KiwiSaver fund. After fee returns are a better indicator of long-term performance than the fund fee charged, as they take into account the impact of fees over time.

In conclusion, while fund fees are an important consideration when choosing a KiwiSaver fund, it's the after fee returns that are ultimately more important. By focusing on after fee returns, you can ensure that you are getting the best possible returns on your investment, and are on track to achieve your retirement savings goals.

The benefits of ethical KiwiSaver investing

Doing good while doing well.

By Scott Crocker

In recent years, there has been a growing interest in ethical and sustainable investing among KiwiSaver investors. Ethical investing involves investing in companies that align with your personal values and beliefs, such as companies that prioritize environmental sustainability or social justice.

One of the most popular ways to invest ethically in New Zealand is through KiwiSaver. Many KiwiSaver providers now offer ethical investment options, which allow investors to invest in companies that meet certain ethical criteria.

There are a variety of ethical investment options available to KiwiSaver investors, including:

1. Ethical funds: These funds invest in companies that meet specific ethical criteria, such as companies that prioritize environmental sustainability or social justice.

2. Impact investing: This involves investing in companies that have a positive social or environmental impact, such as renewable energy or clean technology companies.

3. ESG investing: ESG stands for environmental, social, and governance factors, and involves investing in companies that have strong ESG practices.

Investing ethically through KiwiSaver not only allows investors to align their investments with their values, but it can also have a positive impact on the world. By investing in companies that prioritize sustainability and social justice, investors can contribute to a more sustainable and equitable future.

It's important to note that ethical investing may not always result in the highest returns, as companies that prioritize sustainability may not always be the most profitable. However, for many investors, the social and environmental impact of their investments is just as important as financial returns.

In conclusion, ethical investing is a growing trend among KiwiSaver investors who want to align their investments with their values. With a variety of ethical investment options available, KiwiSaver investors have the opportunity to make a positive impact on the world while also saving for their retirement.

Why a KiwiSaver Government default scheme is a smart choice

By Scott Crocker

Choosing a government-approved default scheme, like those offered by KiwiSaver providers, can be a smart idea for anyone who wants to save for retirement.

By choosing a KiwiSaver default provider, investors can be confident that their funds are being managed by a reputable provider, with a track record of delivering strong investment returns.

There are 3 main benefits:

Government Oversight: KiwiSaver default providers are closely monitored by the New Zealand government, which means that investors can have confidence that their funds are being managed by reputable providers. The government sets standards for default providers, such as minimum levels of diversification, which helps to protect investors from poor investment decisions.

Low Fees: KiwiSaver default providers are required to offer their services at a low cost to consumers. This means that the fees charged by default providers are often lower than those charged by other providers, making it more cost-effective to save for retirement.

Diversified Investments: KiwiSaver default providers are required to offer a diversified investment portfolio to their customers. This means that the funds are invested in a range of asset classes, such as shares, property, and fixed interest. By diversifying investments, investors can reduce the risk of losing money if one investment does not perform well.

Government approved KiwiSaver providers:

KiwiSaver fees: what, when, why & how?

By Scott Crocker

KiwiSaver providers are financial institutions that manage KiwiSaver accounts on behalf of their clients. These providers typically charge fees for their services, which can impact the growth of your retirement savings.

Here are the types of fees that KiwiSaver providers may charge:

1. Membership Fees: Some KiwiSaver providers charge a membership fee for managing your account. This fee is usually a fixed amount and is charged annually.

2. Administration Fees: KiwiSaver providers may also charge an administration fee, which covers the costs associated with managing your account. This fee can be a fixed amount or a percentage of your account balance.

3. Investment Management Fees: KiwiSaver providers invest your money in different investment options such as growth funds, conservative funds, etc. and they charge an investment management fee for managing these investments. This fee can be a percentage of your account balance.

4. Performance Fees: KiwiSaver providers may charge a performance fee if they exceed a certain level of performance. This fee is usually charged as a percentage of your investment returns.

5. Switching Fees: If you want to change your KiwiSaver provider, you may be charged a switching fee. This fee covers the administrative costs associated with transferring your account to a new provider.

It is important to understand the fees charged by KiwiSaver providers and to compare them before choosing a provider. The fees can have a significant impact on the growth of your retirement savings over time. Make sure to read the provider's Product Disclosure Statement (PDS) carefully to understand the fees and any other charges associated with your KiwiSaver account.

The math behind the money

Why after fee returns are key to KiwiSaver success

By Scott Crocker

Choosing the right KiwiSaver fund can have a significant impact on your retirement savings. While fees are an important consideration, "after fee returns" are equally crucial. In this article, we'll take a look at the importance of after fee returns and why you should pay attention to them when choosing a KiwiSaver fund.

1.       After fee returns represent the actual returns you will receive after fees have been deducted.

2.       A fund with a lower fee may still have lower after fee returns due to their investment strategy or performance.

3.       Past performance is not a guarantee of future returns and it's important to consider other factors such as the fund's investment strategy and risk profile.

Example:

Let's say you're thinking of investing in two different KiwiSaver funds - Fund A and Fund B.

Fund A charges a fee of 0.5%, while Fund B charges 1%.

After all fees are deducted, Fund A will give you a return of 7% and Fund B will give you a return of 12%.

Although Fund A has a lower fee, Fund B will still return more money in the long run because its return after fee’s is much higher – a net increase of 3.5%

While fees are a necessary consideration when choosing a KiwiSaver fund, after fee returns are equally important. It's essential to consider both factors when making an informed decision about where to invest your money. By paying attention to after fee returns and other relevant factors, you can ensure that you are on track to achieve your retirement savings goals.