Finsol KiwiSaver Providers vs. Bank KiwiSaver Providers

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Even if KiwiSaver is not considered an essential part of your retirement plan, it's important to be aligned with the right provider and select a fund with an appropriate allocation of growth assets. If you're 50 or younger, playing it too conservatively now will have a significant negative impact on your retirement balance.

What creates some ongoing concern for us is the sheer number of Kiwis who have KiwiSaver accounts with their bank. Generally, this is due to convenience, as opposed to them actively making an investment decision that will benefit them when they're 65.

Bank providers are known for their poor service and advice. Many of them run a set-and-forget model to the detriment of their customers. Unfortunately, bank KiwiSaver returns are nothing to get excited about, either.

So, how do the top three bank KiwiSaver providers by market share compare with our three leading providers? Let's compare the returns of each of the providers mentioned conservative, balanced, and growth funds over a 1, 3, and 10-year period. Data has been extracted from the recent Morningstar KiwiSaver report.

Returns shown are before fees and taxes.
Returns shown are before fees and taxes.
Returns shown are before fees and taxes.

As you would have observed, on average, the non-bank KiwiSaver providers performed better over the short, mid, and long-term for all three fund options, with the only exception being BNZ’s balanced fund, which performed better over the 1-year period, when compared with ANZ, ASB, Booster, Milford, and Pathfinder balanced fund. What was also apparent was Milford’s consistently excellent returns across all three funds from the last decade. Pathfinder, New Zealand's leading ethical KiwiSaver provider, has done a stellar job of navigating market volatility over the previous three years.

In summary, our quality non-bank providers have consistently out performed all of the main bank KiwiSaver providers.

If you feel you could be doing more with your KiwiSaver and would like a detailed recommendation at no cost, send us a few details via a Finsol KiwiSaver profiler form, and we'll respond to you with some personalised advice in no more than a few days. This will include your recommended provider and fund, as well as retirement projection, and key information to help ensure you're investing with confidence.

This article is for informational purposes only and should not be considered as financial advice. It is always recommended to consult with a qualified financial professional before making any financial decisions based on your individual circumstances and as with any investment, past performance is no guarantee of future results.


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