Do you understand KiwiSaver... and do you take action with new knowledge
- Cameron Steele
- 6 days ago
- 4 min read
Do you understand KiwiSaver... and do you take action with new knowledge?
Try this very simple test with me.
I often ask people to rate their knowledge of KiwiSaver from 1 to 10.
The most common answers i get are either 3, 4 and 2.. in that order
I then I ask “how much action have you taken to improve your KiwiSaver - again from 1 to 10?”
The answers are usually much the same.
Give this a go - plot your answers on the first graph below.
Chances are you’re somewhere on the left side
Bottom left quadrant means you don’t know what you don’t know
Top left quadrant means you’ve made changes without really understanding them - maybe you just followed a friend.
My job is to get you to the top-right, usually in 30 to 40 minutes.
My advice sessions are free and there is no obligation to change anything if you don’t want to.
Top-right means You do understand why and how you are going to be proactive in improving your future
Now plot your answers on the next graph below with the colours.
95% of people I meet move to the Green quadrant, and take action.
Once you Do Know, and Do Care... planning for your future becomes less of a bore and opens your eyes to a whole new world of possibilities. That's not an exaduration.
It feels great to know you are in control!
Unfortunately, 5% say they will "wait until the election is over", or they "get a new job", or "my balance is higher" or some other “reason” not to make a decision.
And while that 5% frustrates me, I feel very proud to have actively helped 95% of the people I meet improve their financial literacy and their financial future.
Frequently Asked Questions
Why do many New Zealanders avoid taking action with their KiwiSaver?
Many Kiwis know KiwiSaver is important, but still delay making decisions because they feel overwhelmed, unsure where to start, or worried about making the wrong choice. Financial decisions can feel complex, especially when markets are volatile or providers use confusing terminology.
How often should I review my KiwiSaver?
Most people should review their KiwiSaver at least once per year, and also after major life events such as changing jobs, buying a house, getting married, or approaching retirement. Your fund choice and contribution rate should evolve as your goals and circumstances change.
What happens if I stay in the wrong KiwiSaver fund?
Being in the wrong KiwiSaver fund for your risk profile or timeframe can potentially cost you tens or even hundreds of thousands of dollars over the long term. Some people are too conservative and miss growth opportunities, while others take more risk than they are comfortable with.
Is understanding KiwiSaver enough on its own?
Knowledge is important, but action is what creates better outcomes. Many people understand the basics of KiwiSaver but never adjust their contributions, review their provider, or switch funds when appropriate. Small actions today can make a significant difference over time.
Why do people procrastinate with KiwiSaver decisions?
People often procrastinate because retirement feels far away, financial information can seem intimidating, and KiwiSaver balances are not part of daily life. Behavioural finance research shows humans naturally avoid decisions that feel uncertain or emotionally uncomfortable.
Can getting KiwiSaver advice improve outcomes?
Good KiwiSaver advice can help people better understand risk, choose suitable funds, avoid emotional decisions during market downturns, and stay focused on long-term goals. Advice can also help identify whether someone may be contributing too little or taking unnecessary risk.
What are the most important KiwiSaver decisions?
Some of the most important KiwiSaver decisions include:
Choosing the right fund type
Selecting an appropriate provider
Setting contribution rates
Understanding your investment timeframe
Reviewing your strategy regularly
Avoiding panic during market volatility
Why is taking action early so important in KiwiSaver?
Time is one of the most powerful factors in investing because of compound growth. Small improvements made early - such as increasing contributions or moving to a more suitable fund - can have a major impact over decades.
Should I get a KiwiSaver review even if my balance is small?
Yes. The earlier someone starts making informed KiwiSaver decisions, the more time those improvements have to compound. Even small balances today can become significant retirement savings in the future.
How can Solid Steele KiwiSaver Advice help?
Solid Steele KiwiSaver Advice helps New Zealanders understand their KiwiSaver in plain English and make informed decisions with confidence. This may include reviewing fund choices, discussing risk levels, and helping clients build a strategy aligned with their goals.
Meeting with me means I can discuss these specifics with you and answer any further questions you have. My services cost you nothing - I'm similar to a mortgage broker.
Comments