Investing time now key to an enjoyable retirement

Grandfather putting lifejacket on grandson

GrownUps accepts no responsibility for decisions made by Members or any other persons as a result of using or relying on any information on the GrownUps website. GrownUps does not give any financial advice or make any recommendation of any product or service.

With Christmas over, your holiday break hopefully provided the chance for some well-deserved rest and relaxation. It’s an ideal time to review your retirement investment strategy.

Don’t have one? You’re not alone.  While many New Zealanders now have KiwiSaver, most don’t know how much their account will be worth when they retire; let alone how much they’ll really need.

Grandfather putting lifejacket on grandsonAccording to Glenys Wilson, financial adviser with investment specialist and KiwiSaver provider Mercer, many Kiwis don’t know what to do once they’ve set a realistic retirement target.

“Creating an investment portfolio is much like learning any other skill. If you understand the basics, break things down into small, manageable parts and get advice when you need to, it’s something almost everyone should be able to do,” she says.

Wilson recommends investing some time over the holidays looking at how you might grow your money.

Understand your investment options

While KiwiSaver is the primary investment vehicle for many New Zealanders, there are other ways to invest that don’t require your funds to be locked away until 65.

From cash, bonds, property and shares, all investment types fall somewhere along the risk-versus-reward spectrum. It’s essential to understand that investments proposing higher returns will almost inevitably carry the higher risk of their value will going up and down over time.

Reduce your risk with knowledge

Risk isn’t bad if it’s well managed – and understood. Knowing how particular investment vehicles tend to perform over time, can give you the confidence you might need to withstand the highs and lows of any market.

However, the amount of time you’ll be investing your money for and your personal tolerance to risk should be two of the key factors which help you to decide where to put your money.

Make sure it’s easy to manage your investment

While some people choose to take a DIY approach to investing – like becoming a landlord or buying and selling shares directly, few of us have the time, expertise or even the will to do so.

If you’ve got additional savings or have come into extra money but want to be able to access it before retirement, a managed fund could provide you with exposure to different investments types – depending on which fund, or funds, you choose to invest in.

A key advantage of a managed fund should be knowing you’ve got a team of experts professionally managing your money according to a set criteria. Mercer’s FlexiSaver for example, offers seven investment fund options with over 100 staff worldwide dedicated to researching these options.

Get advice when you need it

The last word on any investment strategy? Don’t be afraid to get advice when you need to. It’s your future after all.

Find out more about Mercer KiwiSaver scheme and Mercer FexiSaver, or call the Mercer Helpline team on 0508 637 237, 9am to 7pm on all business days.


This product is issued by Mercer (N.Z.) Limited. For information about this product, please refer to the product disclosure statement which is available free of charge here. This information has been prepared by Mercer (N.Z.) Limited. Past performance should not be relied upon as an indicator of future performance. The information contained on this page is intended for general guidance only and is not personalised to you. It does not take into account your particular financial situation or goals. Before making any investment decision, you should refer to the product disclosure statement or consult an appropriately authorised adviser. © 2017 Mercer (N.Z.) Limited