How To Grow Your KiwiSaver Faster

For many New Zealanders, KiwiSaver quietly sits in the background for years.

Contributions go in automatically through payroll, statements arrive occasionally, and most people assume things are probably tracking along fine.

Then one day, usually sometime in your 30s, 40s, or 50s, you actually look at the balance and wonder:

“Should this be growing faster than it is?”

That question has become increasingly common as retirement costs rise and more people begin relying on KiwiSaver as a major part of their long-term financial plan.

The good news is that growing KiwiSaver faster often doesn’t require extreme changes. In many cases, a few strategic adjustments made consistently over time can create a meaningful difference later on.

Small Contribution Increases Can Have a Big Long-Term Impact

One of the simplest ways to potentially grow KiwiSaver faster is increasing contribution rates.

Many people stay on the default minimum contribution rate for years without revisiting whether it still suits their situation.

Even increasing contributions slightly can sometimes have a noticeable long-term impact because of compounding investment growth over time.

For example, someone in their mid-30s increasing contributions from 3% to 4% may not feel a major difference in weekly take-home pay, but over 20 to 30 years, the additional contributions and investment growth could add up significantly.

The earlier contribution increases happen, the more time investment returns potentially have to compound.

That doesn’t mean higher contributions are always appropriate for everyone. Cashflow, mortgage repayments, and other financial priorities still matter. But reviewing contribution levels periodically can be worthwhile.

Your Fund Type May Matter More Than You Think

One of the biggest reasons KiwiSaver balances sometimes grow slower than expected is being in the wrong type of fund for your timeframe.

Some people remain in conservative or default funds for years without realising their investments may be positioned more cautiously than necessary for long-term growth.

Generally speaking:

• Conservative funds tend to focus more on stability and lower volatility
• Growth-oriented funds tend to aim for higher long-term returns but may experience larger short-term market fluctuations

For someone decades away from retirement, remaining too conservative may potentially reduce long-term growth opportunities.

For example, a 35-year-old planning to retire at 65 still has a long investment timeframe ahead. Their investment strategy may look very different from someone retiring within the next few years.

This is one area where many people benefit from getting advice or at least reviewing whether their current KiwiSaver settings still align with their goals and timeframe.

Avoid Constantly Switching During Market Volatility

One of the most common mistakes investors make is reacting emotionally during market downturns.

When investment markets fall, it can feel uncomfortable watching balances temporarily decline. Some people move into conservative funds during volatile periods to avoid further losses.

The problem is that switching after markets fall can sometimes lock in losses and reduce the ability to benefit from future recoveries.

KiwiSaver is generally designed as a long-term investment, particularly for younger investors with decades before retirement.

For example, someone in their 30s who changes to a conservative fund every time markets become volatile may potentially miss part of the long-term growth that often comes from staying invested consistently over time.

That doesn’t mean investment risk should be ignored. It simply means investment decisions usually work better when they’re based on long-term strategy rather than short-term fear.

Employer Contributions and Government Contributions Matter

Some people underestimate how valuable employer and government contributions can become over time.

If you’re employed and contributing to KiwiSaver, employer contributions can significantly boost long-term balances over the years.

There’s also the annual government contribution available to eligible members who contribute enough during the year.

Missing out on these contributions can slow long-term growth unnecessarily.

For many people, simply ensuring they’re contributing enough to receive the maximum government contribution is one of the easiest improvements they can make.

Fees Can Make a Difference Over the Long Term

Fees are another area worth reviewing periodically.

Even relatively small differences in fees may compound over long investment timeframes.

That doesn’t necessarily mean the cheapest fund is automatically the best option. Investment strategy, diversification, service, and suitability still matter.

However, many people stay in funds for years without reviewing whether the fees and fund structure still suit their situation.

Over a 20 to 30-year period, even small fee differences may potentially affect overall retirement balances.

KiwiSaver Should Usually Be Part of a Bigger Financial Plan

One mistake people sometimes make is viewing KiwiSaver in isolation.

In reality, KiwiSaver often works best when it’s considered alongside:

• Mortgage repayment strategies
• Emergency savings
• Insurance
• Other investments
• Retirement goals

For example, aggressively increasing KiwiSaver contributions while carrying high-interest debt may not always be the most effective financial strategy depending on the situation.

Likewise, someone approaching retirement may prioritise different investment settings than someone focused on buying their first home.

This is why broader financial planning often matters just as much as choosing the “best” KiwiSaver fund.

Free Tools Can Help You Understand Your Position

One of the best starting points is reviewing where you currently stand.

The Sorted KiwiSaver and retirement calculators can help estimate:

• Future KiwiSaver balances
• Retirement income projections
• Contribution impacts
• Different retirement scenarios

You can explore them here:
https://sorted.org.nz/tools/kiwisaver-calculator/
https://sorted.org.nz/tools/retirement-calculator/

These tools can help people model different contribution levels and retirement timelines to better understand how changes today may affect future outcomes.

For example:

• What difference does increasing contributions by 1% make?
• What happens if retirement is delayed by a few years?
• How might different fund types affect long-term balances?

Even running a few simple scenarios can often provide useful perspective.

Speaking With an Adviser Can Help Avoid Costly Mistakes

While online calculators are useful, many people still feel unsure whether they’re actually making the right decisions.

That’s where speaking with a financial adviser can help.

An adviser may help review:

• Whether your fund type suits your timeframe
• Contribution levels
• Investment risk settings
• Retirement projections
• Broader financial priorities

For many people, the biggest value comes from avoiding mistakes rather than chasing unrealistic investment returns.

The good news is that many advisers offer an initial phone call or first meeting at no cost. Even a short conversation can sometimes help identify opportunities or areas that may need attention.

For someone with 10, 20, or even 30 years until retirement, relatively small improvements made early can potentially make a meaningful difference over time.

Conclusion

Growing your KiwiSaver faster usually isn’t about finding shortcuts or trying to time markets perfectly.

In many cases, it comes down to making steady, informed decisions consistently over time.

Reviewing contribution rates, checking fund settings, understanding fees, and staying focused on long-term goals can all potentially improve retirement outcomes.

And while online tools can be a great starting point, getting personalised advice may help ensure your KiwiSaver strategy actually aligns with your wider financial goals and stage of life.

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Disclaimer

This article provides general information only and does not consider your personal circumstances, objectives, or financial situation. You should consider seeking personalised financial advice before making any decisions.