Money, Jeremy Tauri: Question your Kiwisaver investment

Jeremy Tauri is an associate at Plus Chartered Accountants.

If you're a KiwiSaver member, you have probably had a statement arrive in your email inbox or physical letterbox this week.

Provided you've opened it (and you should), you might see a few extra numbers on there this year.

Last year, KiwiSaver providers were told they must disclose their fees in dollar terms, not just as a percentage of a member's balance.

This year, they must also give an indication of what income an investor could expect to generate from their balance at retirement, given their current account settings.

For some people, that could be a surprise – and a negative one, if they haven't been contributing a lot or are in a fund with low returns.

If you're worried about what your KiwiSaver looks like, there are a few things you can do.

The FMA recommends asking yourself these questions each year:

– Am I happy with the amount of money I'll have in my KiwiSaver at 65?

– Can I afford to contribute more?

– Am I getting good value from my KiwiSaver provider – do their fees seem reasonable?

– Am I in the right KiwiSaver fund?

If you want to boost the final balance you are set to achieve, you can increase your contributions, or consider a different sort of fund.

A higher-growth fund is a good option if you have a few years until you need the money.

If you are making this sort of move, though, remember that riskier funds move around more when markets wobble.

Don't put yourself into a situation where you'll panic at the first sign of a market fall and shift to a more conservative fund.

KiwiSaver is a great tool for retirement but it's a long-term investment and you need to have the settings right to maximise your results.

Get in touch with your provider or a KiwiSaver adviser if it's time to give your account a check-up.

Jeremy Tauri is an associate at Plus Chartered Accountants.