A few things to do now that could leave you with a bigger sum later.

It’s been another rollercoaster year for KiwiSaver in 2025: from US trade tariffs sending global markets into a frenzy, to major policy changes on contribution rates. And as always, whenever there’s any indication balances might take a plunge, the overwhelming advice touted by most experts tends to stay the same: don’t panic, do nothing, just keep calm and carry on. Don’t look.

While it’s not necessarily bad advice, it’s not exactly the best advice either, especially if you’ve never really engaged with your KiwiSaver at all. Adopting a passive, disinterested approach to investing only really works if all your settings are optimised and up-to-date. Otherwise, you’re not only avoiding stress and panic – you’re potentially avoiding adding thousands of dollars to your future retirement as well.

“Although people are taking more interest, there’s been far too much apathy around KiwiSaver,” says Matt Macpherson, general manager of Super and Funds at Sharesies. “You might be 30+ years away from accessing your KiwiSaver, or maybe there’s not much money in your account yet – both things make a great formula for breeding apathy, especially among young people.”

Are you speeding past your KiwiSaver? (Image: Getty)

Combined with more immediate cost of living challenges and relatively low levels of financial literacy overall (a lot of people still don’t realise having KiwiSaver makes them an investor), many New Zealanders are turning a blind eye. However, more recently interest in KiwiSaver has steadily been rising, owing to factors such as increased understanding of investing (especially post-Covid), the option to use part of your funds to purchase your first home, and the growing size of once modest KiwiSaver balances as some of the scheme’s earliest investors approach middle age.

As KiwiSaver enters its 18th year, it could be a good time for many to take the next step. Opting for engagement over apathy, and active participation now could leave many with a bigger sum at retirement. This is a big reason why Sharesies now offers a self-select option as part of the Sharesies KiwiSaver Scheme. Rather than selecting one fund for the whole of your KiwiSaver balance and future contributions to go into, a self-select scheme allows you to pick some or all of the investments that make up your investment plan. Sharesies self-select customers can choose from a list of 145 companies and exchange-traded funds (ETFs) listed on NZ and US exchanges. 

“In most schemes, you choose one fund and everyone gets a small share of the same thing. But we’ve tried to flip that upside down: each customer gets their own portfolio,” Macpherson explains. “Control, connection, and confidence – these are the three things our customers have said they wanted the most.” Being able to select and see where and how your money is getting invested and performing, versus a “set and forget” approach, can be empowering and educational. 

New to the whole “taking-charge-of-your-KiwiSaver” thing and not sure where to start? Here are five simple things you can do now to kick things off.


1. Check that the fund you’re in is right for you

Most KiwiSaver offers broadly fall into one of five types of funds or investment approaches: defensive, conservative, balanced, growth and aggressive. The type of fund you’re in is extremely important as this is what will drive most of your returns. So if you don’t know your fund type, check with your provider. And if you don’t know your fund type or provider, check your Inland Revenue account.

“As of last year, at least 340,000 people remain in default funds which means they haven’t made an active choice about the type of KiwiSaver they’re in,” says Macpherson. “And for a lot of those people, I’d guess there are probably much better options for them, especially if they’re still decades away from retirement.”

To figure out if you’re in the right fund or not, it’s crucial to understand where you are in your life. Are you four decades or four years away from retirement? Do you have any plans in the next few years to use your KiwiSaver for a first home withdrawal? Online tools like Sorted’s investor profiler can be helpful for figuring out the best fit for you, while self-select funds like Sharesies’ KiwiSaver Scheme allow you to pick and choose investments tailored to your specific goals and needs.

Which fund is for you? Image: Getty Images
2. Get comfortable with the ups and down

Some funds (particularly aggressive and growth) are more prone to volatility than others. This volatility, along with the stress and uncertainty it can bring, are why headlines often warn investors not to check their balances during tumultuous events (i.e. Covid-19). But volatility is also normal and expected, with the sharemarket often cycling through ebbs and flows over time.

“Personally, I think that if you want to be a confident investor then you have to get used to a bit of volatility,” says Macpherson. “Panic switching or panic selling [during a dip] isn’t really a good idea, although we’re actually starting to see this happen a lot less, not just from our investors, but across the industry as a whole, which is a positive development.”

KiwiSaver is all about ups and downs (Photo: Getty Images)
3. Understand your fees and provider

Fees are important, but few of us really know how much we pay our providers to manage our investments. In general, actively managed funds charge higher fees as investment managers make active decisions on what investments to buy or sell, while passively managed funds charge lower fees as they simply copy what the index is doing by tracking (buying and selling) the same stocks or funds . There are risks and rewards to both, so it pays to do your research and weigh your options to decide what works for you.

Ultimately, if you decide you’re unhappy with the fees paid to your provider or for any other reason, it’s worth noting that switching is a relatively easy process. “We don’t recommend people switch often, but people should know that it isn’t that difficult,” Macpherson says. “The provider basically does all the work for you. People probably just think it’s more admin than it is but it’s actually easier than something like switching your bank.”


4. Keep up to date on changes to contributions

Since 2013, the minimum KiwiSaver contribution rate for both employees and employers has been 3%. It’s the rate most New Zealanders have stuck to, but as many financial experts have warned, it’s simply not enough to afford most Kiwis a comfortable retirement. As a result, the default contribution rate is set to go up, increasing to 3.5% in April 2026 before rising to 4% by April 2028. 

It’s a positive development, especially since we already know a significant proportion of investors are willing to up their KiwiSaver contribution. In a recent survey by Sharesies which asked over 500 of its customers how they felt about higher contributions, 78% said they were happy to take home a little bit less now in order to have more for their retirement. This suggests that people are beginning to understand how an extra 1% of their salary could make a huge difference by the time they retire, and that what they’re contributing now might not actually be enough.

Unfortunately, contributions aren’t going up across the board: the government also announced it would halve its maximum contribution from $521 to $260. And for those earning more than $180,000 a year? There will be no government contribution at all.

5. Remember what you’re investing for

In today’s world of instant gratification, trying to pay mind to something decades down the track is not easy. Most of us are busy enough as it is, which is why it pays to remember the bigger picture when picking investments and contributing.

“Think of the holidays, the freedom, the comfort that we’ll be able to provide ourselves, and actually take credit for that,” says Macpherson. “Mentally, a lot of people don’t think about KiwiSaver as their money at this stage, but it is their money and they’ve worked hard for it. They deserve to have a dignified retirement.”

Sharesies Investment Management Limited is the issuer of the Sharesies KiwiSaver Scheme. The product disclosure statement (PDS) for the Sharesies KiwiSaver Scheme has been lodged, and may be viewed on the Disclose Register or on our documents page.