Lifestages KiwiSaver SchemeLIFESTAGES AUTO OPTION AGE 35 - 44
Vs Category Average: 5.4%
Vs Category Average: 1.19%
Claire's current KiwiSaver Balance : $40,000
Claire is 30 years old and is looking to buy her first home within the next few years. She earns $70,000 per year and needs $75,000 from her KiwiSaver account to pay towards a first home deposit. She is contributing 10% from her salary and her employer contributes 3%.
To check if this fund is appropriate for her, we first need to calculate how long it will take Claire to reach her deposit goal and then compare that to how her current KiwiSaver fund invests her money.
How the LIFESTAGES AUTO OPTION AGE 35 - 44 invests Claire's money
This fund is a Growth Fund. While in therory, Claire should be able to reach her goal within 3-4 years with a Growth fund, it is not appropriate for her.
The expected volatility from a Growth fund means that her KiwiSaver balance could drop just as she is about to reach her goal. She could end up foregoing her first home dream by being too aggressive.
As in Claire’s example above, it depends on a combination of factors such as how long it will take you to reach your goal, your current contribution rates, and the flexibility of your time frame.
National Capital can help you calculate this and give you advice on which KiwiSaver fund is most suited for your personal circumstances.
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This page does not contain ﬁnancial advice, only information. Past performance is not necessarily indicative of future performance. If you want personal ﬁnancial advice on which KiwiSaver fund is suitable for you, please visit www.nationalcapital.co.nz. Provided figures as on 31st Mar 2020.