The start of a new year is the perfect time to make a few financial resolutions. If you’re serious about growing your KiwiSaver balance, setting some smart goals now can pay off big time in the years ahead. The good news is, making the right changes doesn’t have to be complicated. Let’s dive into five resolutions that can help you maximise your KiwiSaver returns in 2025.

1. Take a Good Look at Your KiwiSaver Investment Strategy

Do you know who your KiwiSaver provider is? What sort of fund are you in? Will the fund you’re in allow you to build a healthy retirement fund? Or are you barely keeping up with inflation?

KiwiSaver is a long game so if you’ve got a decent amount of time before you retire, it‘s worth considering a higher-growth option.

Over the past 10 years, high-growth funds in New Zealand have returned on average 9.1% annually after fees before tax as per the most recent Morningstar KiwiSaver Survey September 2024. Compare that with conservative funds, which have delivered 4.3% annually after fees before tax. It’s a clear how a higher growth allocation can drive higher returns over the long term particularly as compound returns have a greater effect.

Check your investment mix - if you’re at least a decade away from retirement, a growth or high-growth fund might be the most suitable. If you're unsure, or want to see what sort of difference a change in funds could make to your overall retirement balance it’s worth chatting with us to ensure your portfolio is aligned with your long-term goals. Take our KiwiSaver Quiz to get started!

KiwiSaver Quiz

2. Increase Your Contributions - Even Just a Little

If you’re only contributing the minimum 3% of your salary, you’re leaving money on the table. Increasing your contributions (even by just 1-2%) can make a big difference over time, especially if you’re aiming to grow your KiwiSaver balance.

If you contribute just 1% more, you could see a noticeable increase in your balance over the years. For instance, if you’re earning $60,000 a year and you boost your contributions by 2%, you’d add an extra $1,200 to your account annually. Compound that over 20 years, and that’s a solid chunk towards retirement spending!

Consider increasing your contributions in 2025. If you can’t commit to a big jump, start small and gradually increase as you get more comfortable.

3. Get the Full Government Contribution (It's Free Money!)

One of the easiest ways to boost your KiwiSaver balance in 2025 is to take full advantage of the Government Contribution. If you contribute at least $1,042.86 in a year, the Government will match your contribution with an additional $521.43, giving you a 50% return on your money!

To qualify for the full amount, you need to contribute $1,042.86 over the course of the year. You may already qualify for the full government contribution if your annual salary is $34,762 or more and you make employee contributions of at least 3% or $26,072 or more and you make employee contributions of at least 4%.

If you are self-employed to meet the annual $1,042.86 contribution requirement by June 30th, aim to contribute about $87 per month, or around $20 per week. Consider setting up automatic contributions to make sure you don’t miss out. It’s worth checking with your financial adviser or KiwiSaver provider to ensure you’ll have enough come the cut off date in June.

4. Get Advice - The importance of advice

Financial advice can help you navigate key financial decisions, ensuring better long-term outcomes, greater financial security, and peace of mind.

Advised New Zealanders are twice as likely to feel prepared for retirement compared to those who do not seek advice. In fact, 80.8% of advised Kiwis have confidence they will enjoy a comfortable retirement, thanks to professional advice. 88.1% of advised Kiwis believe they’ve achieved better investment outcomes, with returns that are more aligned with their personal financial goals. In contrast, unadvised individuals often miss key opportunities or take on unnecessary risks.

A financial adviser can help you get the most out of your KiwiSaver by ensuring your funds are optimized for growth, tailored to your risk profile, and aligned with your long-term goals. 82.3% of advised clients reported better KiwiSaver outcomes, highlighting the importance of expert guidance.

Financial planning goes beyond financial outcomes too as it also enhances overall well-being. When asked which aspects of life have improved from receiving financial advice (aside from finances) clients of financial planning advisers benefit from better quality family life and improved mental health. This illustrates the full scope of value that financial advice offers with a wide range of improvements in a client's life.

Information taken from the Financial Advice NZ report ‘Trust in Advice’ that you can see summarised in this blog here.

5. Stay on Top of Your KiwiSaver Performance

While KiwiSaver is a long-term investment, it’s still important to check in regularly and make sure your fund is performing as expected. Sometimes adjustments are needed to ensure your fund is still aligned with your goals.

Set a reminder to review your KiwiSaver at least once a year - or if you’re already a Compound Wealth client, we will do an annual review of your KiwiSaver strategy. Check your provider’s performance, compare it to the market, and consider rebalancing if your investment strategy no longer fits your risk tolerance or retirement timeline. If you’re unsure it’s definitely worth reaching out to a KiwiSaver expert to point you in the right direction.

Our Thoughts

Maximising your KiwiSaver returns in 2025 doesn’t require a major overhaul, but it does require attention and action. By reviewing your investment strategy, increasing your contributions, getting the full Government Contribution, getting advice, and tracking your fund’s performance, you’re setting yourself up for better returns in the long run.

Start 2025 with these five resolutions, and watch your KiwiSaver balance grow. The small changes you make today could have a significant impact on your future retirement.

KiwiSaver Quiz

Compound Wealth are based in Mount Maunganui, Tauranga and offer KiwiSaver, Investment & Retirement Financial Advice to clients all over New Zealand.

Blog