Article written by Jason Choy, InvestNow, Senior Portfolio Manager – December 2025

One of the great things about KiwiSaver is how it allows Kiwis to invest in their retirement regularly without having to lift a finger.

But that doesn’t mean it’s a set-and-forget investment tool.

Many people miss out on tens of thousands of dollars by neglecting to engage with their KiwiSaver portfolio. Even otherwise savvy investors often fail to really capitalise on what’s on offer.

The good news? Optimising your KiwiSaver is often really simple – just a few minutes here and there can make a serious difference by the time you reach retirement age.

Here are five of the simplest, most effective ways to make sure your KiwiSaver portfolio is working as hard as possible for you.

1 Check your fund type aligns with your goals

Choosing a KiwiSaver fund isn’t about finding the single “best” one, but the one that’s best for you.

A crucial factor to consider is your KiwiSaver fund’s balance of growth assets (like shares and property) versus income assets (like bonds and cash).

• Growth Assets & Long-Term Performance: As a general principle, funds with a higher allocation to growth assets have historically provided higher returns over the long term (10+ years). This is because they are taking on more risk for the potential of greater reward.
• Understanding Volatility: The trade-off is that these growth-oriented funds can experience more significant ups and downs in the shorter term. If you are many years away from needing your money (e.g., for retirement), you may have more time to ride out this market volatility.
• The Impact of Time: For a young investor with a long time horizon, being in a fund that aligns with a higher risk tolerance could be one of the most valuable financial decisions they make, thanks to the power of long-term compounding.

The following table illustrates how, over a longer period, funds with different risk profiles can deliver different results. Remember however, past performance is not a guarantee of future results, and the performance in any one year can deviate materially for all fund types.

As a KiwiSaver member, ensuring you’re in the ‘right’ fund type might be the best value for money savings decision you can ever make.

2 Make an intentional choice – Don’t blindly accept the default

When you first opt into KiwiSaver, you’ll likely be put in a default fund, without having made an active choice on a fund that best suits your goals and risk profile.

While there’s nothing inherently ‘wrong’ with default options, they are typically designed to be a safe, stable starting point for disengaged members, and likely won’t be tailored to your specific investment needs.

The key takeaway is to ensure your choice is intentional. Have you actively decided that a default fund is the best fit for your individual investment objectives, time horizon, and personal tolerance for risk?

If you haven’t made that conscious choice, it’s time to review. Taking a few minutes to select a fund that truly aligns with your personal circumstances could have a substantial impact on your savings over your lifetime.

3 Review your KiwiSaver settings as your life evolves

Your life is not static, and neither should your KiwiSaver approach. Your “ideal” investment approach will naturally change as your circumstances do.

Some of the most common triggers for a review of your KiwiSaver settings include:

• Age and Risk: As you get older, you may naturally prefer to reduce your investment risk, potentially shifting from growth-focused funds to more conservative options to help protect your nest egg.
• Changing Goals: A young person saving for a first home might choose a conservative fund to protect their deposit. But once that home is purchased, with retirement still decades away, they might intentionally switch to a growth-oriented fund.
• Evolving Values: Your personal preferences may change. You might develop a stronger interest in investing in line with your ethical or environmental values, prompting a move to a more socially responsible investment fund.

The key is to schedule a regular KiwiSaver check-up – at least annually or when a major life event occurs – to ensure your settings still match who you are and what you want to achieve.

Take advantage of the perks

One of the most powerful features of KiwiSaver is the ability to boost your savings with other people’s money.

• Government Contribution: If there’s such a thing as free money, the government’s annual KiwiSaver contribution is probably it. If you contribute the minimum $1,042.86 each year, the government chips in $260.72. Yes, that contribution is half of what it was before it was reduced earlier this year, but if you get it every year between the ages of 20-65, it’s still the easiest $11,732.40 you’ll ever make.
• Employer Contributions: For most Kiwis, this is a critical perk. If you are an employee, your employer must contribute at least 3% of your gross salary or wages. This will increase to 3.5% next year and then 4% in 2028. Combined with your own contributions and the government top-up, the compounding effect over a working lifetime can be enormous.

Actionable Tip: When you get a pay rise or pay off a debt (like a student loan), consider investing that difference (in KiwiSaver or otherwise). You’re saving money you were never used to having, and the long-term benefit can be transformative.

Review performance and fees

All investment funds charge fees, which cover management and administration costs. While you shouldn’t choose a fund on fees alone, understanding their impact is crucial.

• The Impact of Fees: Even a small difference in fees can have a large impact over time. For example, on a $100,000 portfolio, an annual fund fee of 1.00% costs you $1,000 per year. A fee of 0.60% costs $600. That $400 difference, compounded over 20 years, could amount to a significant sum that remains in your pocket rather than being paid in fees.
• Reviewing Performance: It’s also sensible to periodically review your fund’s performance against similar funds and appropriate benchmarks. Is it performing as you would expect given its risk profile? Consistent underperformance might be a reason to consider other options. Remember, switching providers should be a considered decision, not a reactive one to short-term market movements.

Even if it’s only every couple of years, it’s worth seeing how your KiwiSaver fund has compared to others. There is a cost to switching, so be wary of doing it too often, but be mindful that being strategic about fund changes can pay off in the long run.

Your KiwiSaver Action Plan

KiwiSaver is one of the most significant long-term investments most New Zealanders will make. By taking a proactive approach, you can ensure it’s optimised for your future.

Your call to action is simple:

1. Log in to your KiwiSaver account today.
2. Use this 5-point checklist to review your fund type, contribution rate, and fees.
3. Make an intentional choice. Confirm that your current settings are the right ones for you – not just simply a default setting from years ago.

KiwiSaver is an investment like any other, even if it may not feel like it, so it’s worth being intentional about these investment decisions.

For more educational resources to help you make informed investment decisions, explore the wealth of articles and guides on InvestNow, including our 10 investing principles, which can really help to squeeze out the best value out of your KiwiSaver investments.

Disclaimer:

This information is provided by InvestNow Saving and Investment Service Limited (“InvestNow”). The information and any opinions in this publication are based on sources that InvestNow believes are reliable and accurate. InvestNow, its directors, officers and employees make no representations or warranties of any kind as to the accuracy or completeness of the information contained in this publication and disclaim liability for any loss, damage, cost or expense that may arise from any reliance on the information or any opinions, conclusions or recommendations contained in it, whether that loss or damage is caused by any fault or negligence on the part of InvestNow, or otherwise, except for any statutory liability which cannot be excluded. All opinions and market commentary reflect InvestNow’s judgment on the date of this publication and are subject to change without notice. This disclaimer extends to any entity that may distribute this publication. The information in this publication is not intended to be financial advice for the purposes of the Financial Markets Conduct Act 2013, as amended by the Financial Services Legislation Amendment Act 2019. In particular, in preparing this document, InvestNow did not take into account the investment objectives, financial situation and particular needs of any particular person. Professional investment advice from an appropriately qualified adviser is recommended before making any investment. All Investments involve risk. Examples of specific fund performance are for illustrative purposes only and are not intended as a recommendation. Past performance is not a reliable indicator of future results.