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Jeremy Thomas

Jeremy Thomas

Get your free Government money

Posted in Kiwisaver, Savings on

Would you like free money? How about $500, and you barely have to do a thing? This time of year is all about tax. Just the word is enough to give some people the shudders, but resist the urge. Think instead of the free money going begging, and how easy it can be to get hold of your slice of the pie.

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Ryan Edwards

Ryan Edwards

Get Sorted: Why KiwiSaver balances go up... and down

Posted in Kiwisaver, Savings on

Quick question: what's the difference between a savings account and a KiwiSaver account? Short answer: when you put money in, the first always goes up, but the other goes up and down. That's no small thing. And while we personal finance folks like to go on about the magic of compounding for both saving and investment, sometimes we'd be better off pointing out how different the two are. The one caveat to saying that a savings account always goes up is inflation. Savings can actually roll backwards as well, when you bring inflation into the picture. You're adding money, but its real value and how much it can buy gradually becomes less and less. This is why we need investing.

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Sam Gapes

Sam Gapes

Poor choices making KiwiSavers worse off

Posted in Kiwisaver on

The latest KiwiSaver fund updates show that scheme members are probably leaving hundreds of thousands of dollars on the table because of their conservative approach to investing. New Zealanders scour the web looking for the cheapest clothes, airline tickets, hotels and electricity deals but this low-cost approach may backfire when it comes to KiwiSaver because the lowest-fee funds have generally delivered the lowest returns in recent years. This low-fee strategy could be costing investors $100,000 or more on retirement.

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Jeremy Thomas

Jeremy Thomas

Want to have a comfortable retirement? Here's how

Posted in Kiwisaver, Retirement, Savings on

Retirement - whether it's at 65, 67 or some other age entirely - probably seems a long way off. But if you can get on track now, your future self will thank you for it. Here's how to get sorted for retirement in five easy(ish) steps.

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Nicola Hines

Nicola Hines

Women fall further behind in retirement savings race

Posted in Kiwisaver, Retirement, Savings on

New Zealand's retirement savings gender gap just keeps getting bigger, new research shows. ANZ said, on current savings patterns, women were likely to retire with almost $80,000 less in their KiwiSaver accounts than men. General manager of wealth products and marketing Ana-Marie Lockyer said it was disappointing to see women falling further behind in their retirement savings. She said the average balances of women members of ANZ's KiwiSaver scheme, the largest in the country, were 19 per cent lower than men's. Women had an average $13,333 compared to $16,527 for men. A year ago, women were only 15 per cent behind.

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Ryan Edwards

Ryan Edwards

Fee debate welcomed

Posted in Kiwisaver on

The Commission for Financial Capability has welcomed fresh debate on the touchy subject of KiwiSaver fees after a new report suggested there was an "unhealthy focus" on fees - rather than the overall outcome delivered by various schemes. The Australian-based SuperRatings research house says that substantial improvements have been made over the past year in terms of member engagement and servicing, but chief executive Adam Gee says that "the race to the bottom on fees remains particularly concerning."

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Nicola Hines

Nicola Hines

Perils of the passive strategy

Posted in Kiwisaver, Savings on

There has been a huge amount of media commentary on the relative merits of active versus passive investing, particularly in relation to KiwiSaver funds. Most media commentators, including Weekend Herald columnist Mary Holm, argue that passive KiwiSaver funds are better because they are cheaper. Holm maintains that active funds underperform passive managers on an after-fee basis, mainly based on United States research, and she repeatedly encourages individuals to invest through passive funds rather than active funds. But this debate should also include an assessment of fund managers as financial intermediaries. The argument should not be about fees only.

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Henry Tongue

Henry Tongue

SuperRatings Releases 2017 Kiwisaver Ratings

Posted in Kiwisaver on

SuperRatings has now released its formal 2017 ratings, awarding seven schemes its highest Platinum rating. Now in its fourth year of rating the KiwiSaver system, SuperRatings recognises that substantial improvements have been made over the year in terms of member engagement and servicing, albeit the challenging investment environment has resulted in subdued returns for many KiwiSaver members and the race to the bottom on fees remains particularly concerning.

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Sam Goldwater

Sam Goldwater

Members may lose the ‘race to the bottom’ on fees, researcher warns

Posted in Kiwisaver, Savings on

A new analysis has debunked the assumption that low fees inevitably equate with better outcomes for KiwiSaver investors. In fact, the study, released by Australian research house SuperRatings last week, found there was “often an inverse relationship between fees and investment outcomes achieved by members”.

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Ryan Edwards

Ryan Edwards

KiwiSaver relief for quake-affected

Posted in Kiwisaver on

Commerce and Consumer Affairs Minister Paul Goldsmith has announced relief for KiwiSaver members who are suffering financial hardship following the November 14 earthquakes, by making it easier for them to withdraw their funds.

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