This article was amended in December 2025.
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 2025 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 that 55% of New Zealanders - equivalent to just over two million people - worry about money daily or weekly, and only 44% feel prepared for retirement, 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 more accessible to everyone.
You can use the Milford KiwiSaver Plan Digital Advice tool for personalised fund guidance. You can also speak directly with our KiwiSaver advisers, or access advice on the Milford KiwiSaver Plan through select independent financial advisers across the country.
If you’re interested in Milford’s Investment Funds and want help choosing the right option, it’s easy to get in touch with us online or over the phone.
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 accessible financial advice, is a great place to start.
Disclaimer: Milford Funds Limited is the issuer of the Milford KiwiSaver Plan. Please read the Milford KiwiSaver Plan Product Disclosure Statement at milfordasset.com. Past performance is not a reliable indicator of future performance. Investment involves risk and returns may be negative as well as positive. This article 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 a Financial Adviser. The disclosure statements of all Milford Financial Advisers contain more information and are available for free on request. Visit milfordasset.com/getting-advice to view Milford‘s Financial Advice Provider Disclosure Statement.