There’s a bit of an art to switching KiwiSaver providers.
Picking a KiwiSaver provider you trust, and a provider that is working alongside you, is one of many contributing factors to achieving your KiwiSaver goals.
This alignment of interest and trust will ensure you’re not only sleeping well at night but you’re also confident your provider is rowing the boat in the same direction as you.
Finding the right provider can be difficult in a competitive market but making the move to the provider you want to be with seems to be even more difficult. Consumer NZ research in June showed that 14 per cent of KiwiSaver members were looking to switch providers – but only about five per cent actually made the move (over the 12 months to June).
This is a continuing trend we’re seeing at Milford – members looking to switch to the Milford KiwiSaver Plan might delay their move due to market volatility or wait for their KiwiSaver balance to recover with their current provider.
All investment managers invest in similar markets, so the decision to move should be primarily driven by who you’d like to manage your money going forward. Waiting for your balance to recover could take some time and shouldn’t be your main focus. Key factors to consider when picking a provider should include long-term investment performance, fees, service, access to advice, alignment of interest, communications and transparency.
Other things you may want to consider include whether the provider is New Zealand-owned and whether the people managing your money are also shareholders in the business. At Milford, we are an experienced specialist investment manager that is both New Zealand- and staff-owned; we’re here to stay, and we’re motivated to do a good job for our investors.
During the summer break, the barbecue conversations may include how investments have gone throughout the year and, for many people, their largest investment will be KiwiSaver.
So take the opportunity this summer to consider your KiwiSaver provider and be sure you have made make an active choice on who you’d like to manage your money into the future.
Want more investment insights? Check out Milford’s The Investing Place for exclusive masterclass content, news and opinion pieces.
Disclaimer: This article is intended to provide you with general information only. It does not take into account your objectives, financial situation or needs. Milford Funds Limited is the issuer of the Milford KiwiSaver Plan and Milford Investment Funds. Please read the relevant Milford Product Disclosure Statement at milfordasset.com. Before investing you may wish to seek financial advice. For more information about Milford’s financial advice services visit milfordasset.com/getting-advice. Past performance is not a reliable indicator of future performance.