Compound growth and smart choices make all the difference.

KiwiSaver is one of the best and most popular ways New Zealanders can save for their future, but it can be difficult to know if you’re getting the most out of it. To help, here are two essential tips.

1. Think of it as an investment

Many of us think of KiwiSaver as a savings account, but it’s really an investment account. One of the key benefits of an investment account is the ability to earn compound returns. Compound returns are where you earn a return on top of the return you have already earned. For example, a 10 per cent return on $10 = $1 of returns. Your original $10 plus the $1 of returns mean you now have $11 in total. If you earn a 10 per cent return on $11, it is not just $1 of returns, it is $1.10. The reason it is larger is because you are earning a 10 per cent return on $11 rather than $10. The magic of compound returns means you can turn a small amount of money into a large amount of money, when it’s left to grow and compound over time.

Even a small increase in returns can make a surprisingly large impact over time. For example, if your KiwiSaver provider achieves even slightly higher annual investment returns than average over your working life, this may well add thousands of dollars to the amount you’ll have at retirement.

So, it’s worth considering choosing a KiwiSaver provider with a track record of delivering strong returns on its funds over the long term. Although past performance is not a guarantee of the future, it does give an indication of how skilled your provider is at investing your money.

But where do you go to compare KiwiSaver funds? There are a number of online comparison tools and performance surveys. One good one is the independent survey conducted by research house Morningstar - see Morningstar’s September 2024 KiwiSaver survey. The report found Milford achieved the best long-term performance in the Growth, Conservative and Balanced categories over the past decade.

2. Get good advice

Research from the Financial Services Council shows 75 per cent of people feel their overall wellbeing is linked to their financial wellbeing, yet most of us don’t seek financial advice.* We often get advice on other things in life, but the reality is financial advice has not been that accessible. That’s changing though. Financial advice is evolving and technology is making it much more accessible to everyone.

For example, at Milford we offer online digital advice on the Milford KiwiSaver Plan and select Milford Investment Funds. This gives our clients access to goals-based personalised advice in a matter of minutes - at no extra cost.

Having this type of advice at your fingertips can help you identify your goals, whether that is buying your first home or retiring happily, and helps ensure you’re on track by being in the right fund and contributing the appropriate amount.

We all want peace of mind when it comes to our money. Choosing a KiwiSaver provider you can partner with, who offers investment expertise and easy access to specialist financial advice is a great place to start.

Discover Milford’s KiwiSaver Plan

Want more investment insights? Check out Milford’s The Investing Place for exclusive masterclass content, news and opinion pieces.

To learn more about investing with Milford visit here

Disclaimer: This is intended to provide general information only. It does not take into account your investment needs or personal circumstances. It is not intended to be viewed as financial advice. Before making any financial decisions, you may wish to seek financial advice. See our Financial Advice Disclosure Statement at milfordasset.com/getting-advice for more information about our financial advice service. The disclosure statements of all Milford Financial Advisers contain more information and are available on request free of charge.

Milford Funds Limited is the issuer of the Milford KiwiSaver Plan and the Milford Investment Funds. Please read the relevant Milford Product Disclosure Statement at milfordasset.com. Past performance is not a reliable indicator of future performance.

*Source: Money and You – Research – Financial Services Council – August 2020.