Insure New Zealand Ltd

KiwiSaver - are you in the right fund?


Article provided by Insure New Zealand Limited

Markhams Auckland Client

Did you know that a slightly improved performance on your KiwiSaver account can mean thousands of dollars difference to the end result at retirement.

For example, if you started on a salary of $35,000 with a three percent increase in salary each year and joined KiwiSaver at age 23, then:

  • Assuming a four percent return, you would have $306,405 in your KiwiSaver at age 65
  • With the same salary but a return of six percent, you would have $490,248. This equates to an $183,843 difference.

Silly question but which would you prefer?

On 1 October 2010, the majority of KiwiSaver funds were three years old. Three weeks later, the majority of KiwiSaver funds were assigned a ‘star rating’ by research houses – with 5 stars being the best. Based on performance over the last three years the top 15 percent of KiwiSaver funds receive a 5-star rating, while the next 20 percent receive a 4-star rating. Ideally you want to be invested in a 5 or 4 star fund. What ‘star rating’ is your fund?

Drawing on over four decades of experience, purchased research from two sources, your investment profile, and savings time frame, Life-Time Financial Group can easily compare KiwiSaver funds and recommend the ideal solution for your needs.

Below is an example of how various balanced funds compare in the market. As you can see, there is significant difference after only three years and four months. As at January 2011, the difference in returns between these three ‘balanced’ type funds is quite considerable and this research could mean a substantial amount more in your retirement fund.

Consumers enrolled in KiwiSaver from the beginning are now discovering they have a reasonable amount saved and wish to learn if they are invested in the most appropriate KiwiSaver plan. If you would like an audit on your current KiwiSaver Scheme, then please contact: Shai, Phillip or Gary from Life-Time Financial Group on (09) 418 5000.

www.life-timefinancialgroup.co.nz

Insure New Zealand

Published Spring 2011.




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