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: