2 Smart Tips to Maximise Your KiwiSaver Account - Milford Asset

2 Smart Tips to Maximise Your KiwiSaver Account

Sarah Mitchell

Head of Marketing and Client Experience

Sarah is the Head of Marketing and Client Experience at Milford, responsible for promoting Milford’s Funds and services and the growth and enhancement our client interactions and experience. The marketing team that Sarah heads supports the various client facing areas of the business and Milford’s sponsorship program.

Since joining Milford in 2010, Sarah has held roles across Client Services, Product and Marketing.

Prior to working with Milford she was employed by Hastings Funds Management in Melbourne, Australia, working within Investor Relations and marketing.

Sarah has a Bachelor of Commerce and a Bachelor of Arts (Psychology) from the University of Auckland.

KiwiSaver is probably not something you think about very often, but your KiwiSaver account is likely to become one of your primary sources of income in the future. So you want to make sure you’re doing everything you can right now to make it grow. Here are two smart tips to help:

1. Choose the right type of fund

If you have a long time until retirement, for example 10+ years, then you should consider investing in a growth oriented fund. This is because over long time periods (e.g. 10+ years) growth funds, which mainly invest in shares and property, should produce better returns than conservative funds, which mainly invest in bonds and cash.

The latest research from Morningstar shows that over the last 10 years the average growth fund has returned 9.9% p.a. while the average conservative fund has returned just 6.2% p.a.

If you’re unsure which fund is right for you, most KiwiSaver providers have a risk profile tool on their website which can help you work this out.

2. Choose an investment specialist

Although KiwiSaver is a savings account, it’s also an investment account and the investment returns achieved by KiwiSaver providers varies. Some have better track records than others. The reason this matters is because over your career, even a small increase in your annual return can make a big difference to your retirement. In many cases, it can mean tens of thousands of dollars extra for your future.

So, when deciding whether you should stay with your current provider or switch to a new one, it’s important to make sure you’ve chosen an expert investor with a proven track record of strong returns.

Is your KiwiSaver account working as hard as it should?

The latest report from independent investment research company Morningstar sheds light on who’s delivering the best returns to their KiwiSaver members.

We’re pleased to report Milford’s members are achieving outstanding results. Milford’s KiwiSaver Active Growth Fund is the best-performing KiwiSaver growth fund in the country over the past 10 years. Plus, our KiwiSaver Balanced Fund and our KiwiSaver Conservative Fund are the best-performing balanced and conservative funds over the past 5 years.

By focusing on the long-term returns achieved after fees have been deducted, Morningstar’s research reveals the true value KiwiSaver providers are adding to their member’s savings.

10-Year KiwiSaver Growth Fund Annual Returns

Data sourced from Morningstar Survey September 2019. Returns are after fees and before tax. Please note past performance is not a guarantee of future performance.

We put our excellent returns down to our world-class investment expertise combined with an insatiable curiosity that keeps us constantly asking how we can do better.

And while investment returns are important, like you we have other things that are important to us. So, when you invest with Milford you can take comfort in knowing you’re also supporting the local community, you’re investing responsibly and you’re getting peace of mind because all Milford employees invest their own retirement savings in Milford’s Funds – right next to yours.

If that sounds like the kind of company you’d like looking after your savings, why not join our award-winning KiwiSaver Plan right now?

Join or switch to Milford in minutes




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 investment or financial advice. Should you require financial advice you should always speak to an Authorised Financial Adviser. Please note past performance is not a guarantee of future performance. Please read the Milford KiwiSaver Plan Product Disclosure Statement (found here) before investing. 

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