 By Paul de Klerk Investment Specialist (FSP110367) Need to speak to Paul for personalized guidance? Click here.  The Australian Labor Party, having won the 2025 federal election, has proposed a policy to tax unrealized capital gains on superannuation accounts with balances exceeding $3 million, set to take effect from July 1, 2025. This policy, part of the Treasury Laws Amendment (Better Targeted Superannuation Concessions) Bill 2023, doubles the tax rate on earnings from 15% to 30% for the portion of superannuation balances above $3 million. Critically, it includes unrealized capital gains—gains in asset value that have not been realized through a sale—in the taxable earnings calculation. Here’s a breakdown of the policy and its scope: Key Features of the Policy 1. Tax on Unrealized Gains: • Unrealized capital gains occur when an asset’s value increases but the asset remains unsold. Under this policy, the increase in value of assets held in superannuation accounts over $3 million is taxed annually, regardless of whether the assets are sold. • Earnings are calculated as the difference between the superannuation balance at the end of the financial year and the start, adjusted for contributions and withdrawals. This includes both realized and unrealized gains, taxed at 15% for the additional 15% rate (total 30%) on the portion above $3 million. • Losses can be carried forward to offset future tax liabilities, but there’s no refund for taxes paid on gains if the asset’s value later falls. 2. Threshold and Impact: • The $3 million threshold is not indexed to inflation, meaning more accounts will exceed it over time as asset values rise. Estimates suggest it initially affects about 80,000 accounts (0.5% of superannuation accounts), but over time, it could impact over 500,000 Australians, including 204,000 under 30, as balances grow. • The Greens have pushed for a lower $2 million threshold, which could affect 1.8 million Australians long-term if adopted in a hung parliament, though Prime Minister Anthony Albanese has ruled out lowering the threshold. 3. Revenue Projections: • The Parliamentary Budget Office estimates the tax will raise $300 million in its first year, growing to $2.4 billion by year four and nearly $7 billion annually within a decade. Application to Asset Classes: The policy applies to all assets held within superannuation accounts above the $3 million threshold, including: • Property: Real estate, such as commercial properties, residential rentals, or farms, held in self-managed super funds (SMSFs) is included. Farmers are particularly concerned as land values can exceed $3 million, and illiquid assets may force sales to cover tax bills. • Equities: Listed shares (e.g., ASX stocks) and unlisted shares in private companies are subject to the tax on their unrealized value increases. • Other Investments: Assets like infrastructure, venture capital, debt securities, and loans held in super funds are also included. However, less than 3% of high-balance funds are invested in volatile or illiquid assets like venture capital, according to Assistant Treasurer Stephen Jones. • Defined Benefit Schemes: Public sector pensions (e.g., judges, politicians) with notional cash values above $3 million are included, addressing fairness concerns. The tax does not currently extend beyond superannuation to other asset classes like personal real estate (e.g., family homes), family trusts, or non-super investments. However, critics, including investor groups and business leaders, fear it sets a precedent for broader application, especially given the Greens’ influence and the lack of indexation. Some speculate it could eventually target family homes or other assets, though Labor has not confirmed such plans. Criticisms and Concerns • Unfairness: Taxing unrealized gains is seen as a departure from traditional tax principles, where capital gains tax (CGT) is only levied upon sale. Critics argue it taxes “paper gains” that may never materialize if asset values fall. • Economic Impact: Business leaders like Geoff Wilson and Brian McNamee warn it could deter investment in startups and small businesses, as SMSFs are a key capital source. Up to $25 billion may be withdrawn from SMSFs to avoid the tax, potentially inflating property prices or reducing venture capital. • Administrative Complexity: Valuing illiquid assets like farms or unlisted shares annually is challenging and costly for the Australian Taxation Office and super funds. • Liquidity Issues: Holders of illiquid assets (e.g., farms) may need to sell to pay tax bills, disrupting long-term investment strategies. • Precedent Setting: The policy is labeled a “Trojan horse” by critics who fear it could expand to other assets or lower thresholds, especially if Labor relies on Greens’ support. Defence from Labor • Fairness: Treasurer Jim Chalmers and Albanese argue the policy targets only the wealthiest 0.5% of superannuation account holders, reducing overly generous tax concessions while preserving concessions for most. • Pre-existing Taxes: Assistant Treasurer Stephen Jones claims unrealized gains are already taxed in Australia (e.g., land tax, APRA-regulated funds), though critics dispute the scale and equivalence. • Revenue for Public Good: The tax aims to fund public services by capturing revenue from high-wealth individuals, with minimal impact on “middle Australia.” Political Context • The policy has been contentious, with the Coalition, led by Peter Dutton, branding it a “quasi-inheritance tax” and a broken promise from Albanese’s 2022 campaign claim of no super changes. • The Senate blocked the bill in 2024, and its passage depends on the new parliament’s composition. Labor needs Greens and crossbench support, which may pressure concessions like a lower threshold. • Public sentiment on X reflects outrage, with users calling it “criminal” and “outrageous,” fearing it taxes unsold assets and could expand beyond super. Does It Apply to All Asset Classes? No, the tax is currently limited to assets within superannuation accounts exceeding $3 million, covering property, equities, and other investments held in these funds. It does not apply to assets outside superannuation, such as personal homes, non-super investments, or family trusts. However, the lack of indexation and potential Greens influence raise concerns about future expansion to other asset classes, though no concrete proposals exist. Critical Perspective The policy challenges established tax norms by taxing potential wealth rather than realized income, raising philosophical questions about fairness and economic incentives. While Labor frames it as a targeted measure for the ultra-wealthy, the lack of indexation and precedent-setting nature fuel skepticism about its long-term scope. Historical attempts to tax unrealized gains (e.g., Norway, US proposals) have led to capital flight or policy reversals, suggesting risks Australia may face. Conversely, supporters argue superannuation tax concessions disproportionately benefit the rich, and this corrects an imbalance without affecting most Australians. The policy’s success hinges on implementation details and political negotiations, which remain uncertain post-election. So, at least for now, perhaps it’s best to keep your Kiwisaver invested in New Zealand before transferring it to Australia?  PAUL DE KLERK
Paul de Klerk (FSP110367) is a Kiwisaver and investment specialist working for the Financial Advice Provider known as De Klerk Business Services Ltd (FSP1105978). Nothing in this article should be considered as personal financial advice. If you need personalised investment advice, speak to Paul for free at www.pauldeklerk.co.nz/contact. For a disclosure statement visit www.pauldeklerk.co.nz/disclosure  By Paul de Klerk Invesment Specialist (FSP110367) Need to speak to Paul for personlized guidance? Click here.  As of 1 April 2025, new income thresholds for calculating the Prescribed Investor Rate (PIR) tax on your KiwiSaver and other Portfolio Investment Entity (PIE) investments have come into effect in New Zealand. These changes, announced in Budget 2024, align with personal income tax adjustments made on 31 July 2024, and could impact how much tax you pay on your investment returns. Here’s a quick guide to what’s changed, what it means for you, and why now is the perfect time to double-check your PIR. What’s Changed? The PIR is the tax rate applied to your KiwiSaver investment income, and it’s based on your taxable income over the previous two tax years. The new income thresholds, effective 1 April 2025, are:
These updated thresholds mean some investors may now qualify for a lower PIR, potentially reducing the tax deducted from their KiwiSaver returns. For example, if your taxable income is $50,000 and your total income is below $78,100, your PIR could drop from 28% to 17.5%, saving you money. What Does This Mean for You? A lower PIR means less tax is deducted from your investment earnings, leaving more money to grow in your KiwiSaver account. However, choosing the correct PIR is crucial:
Inland Revenue may notify your KiwiSaver provider if they believe your PIR is incorrect, but it’s your responsibility to ensure it’s accurate. Action You Should Take Now To make sure you’re on the right PIR and not over- or under-paying tax, follow these steps:
Need Help? If you’re unsure about your income details or how to calculate your PIR, reach out to me for assistance with updating your PIR or understanding your KiwiSaver account. Conclusion The new PIR thresholds are an opportunity to potentially lower your tax rate and boost your KiwiSaver savings. By taking a few minutes to double-check your PIR, you can ensure you’re paying the right amount of tax and maximizing your investment growth. Log in to your account today or get in touch with me to confirm your PIR is correct.  PAUL DE KLERK
Paul de Klerk (FSP110367) is a Kiwisaver and investment specialist working for the Financial Advice Provider known as De Klerk Business Services Ltd (FSP1105978). Nothing in this article should be considered as personal financial advice. If you need personalised investment advice, speak to Paul for free at www.pauldeklerk.co.nz/contact. For a disclosure statement visit www.pauldeklerk.co.nz/disclosure  By Paul de Klerk Investment Specialist (FSP110367) Need to speak to Paul for personalized guidance? Click here.  New Zealand’s KiwiSaver scheme, a cornerstone of retirement savings for 3.3 million Kiwis with $121 billion invested, is under scrutiny as Finance Minister Nicola Willis considers increasing contribution rates. This potential policy shift, hinted at in recent statements, aims to bolster retirement security amid economic recovery and global uncertainties. This article is my detailed report and analysis of this development, its implications for KiwiSaver accounts, and the broader economic context. Reference Article: NZ Herald - Nicola Willis Mulls Upping Kiwisaver Contributions As Treasury Rings Alarm Bells Over Cost of Aging Population BACKGROUND: The Current KiwiSaver Framework KiwiSaver, launched in 2007, operates on a voluntary basis with a default employee contribution rate of 3% of gross income, matched by a minimum 3% employer contribution (unless offset by a total remuneration agreement). Employees can opt for higher rates—4%, 6%, 8%, or 10%—but most stick to the default. This structure has built a significant savings pool, yet it lags behind international benchmarks like Australia’s superannuation system, where employer contributions are set at 11.5% (rising to 12% by July 2025) and total assets exceed 150% of GDP, compared to New Zealand’s 40%. Willis has expressed a desire to see KiwiSaver balances grow, telling the NZ Herald, “I do want to see New Zealanders’ KiwiSaver balances increasing over time, so they have more financial security in their retirement.” She is currently seeking advice and has not yet taken formal proposals to Cabinet, but the push for higher contributions aligns with calls from providers many Kiwisaver providers who advocate for a combined 10% rate to close the retirement savings gap. Recent Developments Prompting Change This news provides context for Willis’ considerations: Economic Recovery and Market Volatility: New Zealand emerged from a recession in late 2024, with GDP growing 0.7% in the December quarter, per StatsNZ. However, global market turbulence—exacerbated by a 10% drop in the S&P 500 from its yearly highs and President Trumps tarriffs about to be levied on 2 April—has rattled investor confidence. Some KiwiSaver members have shifted to conservative funds, highlighting the need for robust, long-term savings strategies. Treasury Warnings: Treasury has flagged “chronic” pressures on government finances from an ageing population and the rising cost of NZ Super. Increasing KiwiSaver contributions could reduce future reliance on state pensions, a point Willis has acknowledged: “Not everyone will own their own home at retirement.” Provider Advocacy: Many Kiwisaver providers see this as a timely adjustment, given KiwiSaver’s 18-year history and the need to future-proof the system. Potential Policy Options: While Willis has not detailed specific plans, several options emerge from her statements and industry commentary:
Impact on KiwiSaver Accounts: Short-Term Effects:
Long-Term Benefits:
Risk Profile Adjustments: Younger investors in growth funds might benefit most from increased contributions during market dips, while those nearing retirement may prefer conservative options, amplifying the need for tailored advice. Economic and Political Considerations:
Critical Analysis: Willis’ push reflects a pragmatic response to demographic and fiscal realities, but it’s not without trade-offs. Australia’s higher contribution model succeeds partly due to compulsory participation and stronger wage growth—conditions New Zealand lacks. Critics might argue that forcing higher contributions in a fragile economy risks stifling consumption, a key GDP driver. Conversely, delaying action could entrench retirement inequality, especially for non-homeowners. My Recommendations for KiwiSaver Members:
Conclusion: Finance Minister Nicola Willis’ potential decision to increase KiwiSaver contribution rates is a bold step toward securing New Zealanders’ financial future. While it promises larger retirement nest eggs and reduced state dependency, it demands careful calibration to avoid overburdening workers and employers. As she weighs advice and navigates Cabinet, the outcome will shape KiwiSaver’s role in an evolving economic landscape. For now, staying informed and proactive is your best strategy—let’s unlock KiwiSaver’s full potential together.  PAUL DE KLERKPaul de Klerk (FSP110367) is a Kiwisaver and investment specialist working for the Financial Advice Provider known as De Klerk Business Services Ltd (FSP1105978). Nothing in this article should be considered as personal financial advice. If you need personalised investment advice, speak to Paul for free at www.pauldeklerk.co.nz/contact. For a disclosure statement visit www.pauldeklerk.co.nz/disclosure
 By Paul de Klerk Investment Specialist (FSP110367) Need to speak to Paul for personalized guidance? Click here.  When it comes to saving for retirement, understanding where your money goes and how it grows is vital. As a KiwiSaver member, you contribute regularly to your fund, trusting it will build enough wealth to support you in your golden years. But have you ever wondered about the forces shaping your investments? Let’s explore the difference between Main Street and Wall Street and why this distinction matters for your KiwiSaver journey. Main Street vs. Wall Street Main Street refers to the everyday economy that we all live and work in. It’s where people earn wages, shop for goods, and run businesses. It represents the real-life financial experiences of individuals, families, and communities Wall Street, on the other hand, symbolizes the financial markets. This is where stocks, bonds, and other assets are traded, and where KiwiSaver providers invest your contributions. Wall Street operates on a global scale, influenced by economic trends, corporate performance, and investor sentiment. While these two concepts are interconnected, they often move in different directions. Understanding how this dynamic works can help you make better decisions about your KiwiSaver investments. Why This Matters for KiwiSaver Members Your KiwiSaver contributions don’t just sit in a bank account. They are actively invested in a mix of assets like shares, bonds, property, and cash. These investments are shaped by Wall Street—a world that can seem far removed from your everyday financial reality on Main Street. Here’s how understanding this relationship can benefit you:
Practical Tips for KiwiSaver Members To bridge the gap between Main Street and Wall Street, consider these actionable steps:
Empower Your Retirement Savings By understanding the interplay between Main Street and Wall Street, you’ll gain a clearer perspective on your KiwiSaver investments. This knowledge allows you to make strategic decisions, stay focused on long-term growth, and avoid pitfalls driven by short-term market changes. Remember, your KiwiSaver is more than just a savings account—it’s a powerful tool to secure your future. Use it wisely and stay informed for a better retirement outcome.  PAUL DE KLERK
Paul de Klerk (FSP110367) is a Kiwisaver and investment specialist working for the Financial Advice Provider known as De Klerk Business Services Ltd (FSP1105978). Nothing in this article should be considered as personal financial advice. If you need personalised investment advice, speak to Paul for free at www.pauldeklerk.co.nz/contact. For a disclosure statement visit www.pauldeklerk.co.nz/disclosure
By Paul de Klerk
Investment Adviser (FSP110367)
As 2025 approaches, financial experts have provided insights that may influence KiwiSaver investments. I also have my own opinions about what my clients should be considering as we enter 2025:
Economic Outlook: • Positive Prospects: After a challenging 2024, the New Zealand economy is expected to improve in 2025, with lower inflation and interest rates supporting growth. I'm sure this would be welcomed because the cost-of-living crisis has been hard for many people to navigate in 2024. • Interest Rates: The Reserve Bank of New Zealand has been reducing the Official Cash Rate (OCR) to stimulate the economy, with projections suggesting it could reach 3% in 2025. I personally share this view. Better times should be ahead for New Zealanders in 2025 compared to 2024. Investment Markets: • Share Markets: Analysts anticipate continued growth in both New Zealand and international share markets, driven by economic recovery and corporate earnings. However, increased volatility is expected, particularly in the U.S. This is not a bad thing for Growth Funds (volatility can be your friend when properly understood and responded to). However, those who are more conservative in nature may need more personalised guidance to navigate 2025. Feel free to reach out to me any time for this guidance. • Fixed Income: With declining interest rates, fixed-income investments may offer an attractive solution for those nearing retirement age now. Fixed-income assets are a key component of KiwiSaver conservative and balanced funds, benefiting investors seeking capital preservation or lower volatility. Property Market: • Housing: The property market is projected to recover modestly, with house prices increasing by around 5% in 2025. This trend could benefit KiwiSaver funds with real estate exposure. Considerations for KiwiSaver Investors to prepare now for 2025: • Review Fund Allocation: Ensure your KiwiSaver fund aligns with your risk tolerance and retirement goals. Feel free to make a free, no obligation Zoom call consultation with me to discuss your risk tolerance and next steps to achieve your Kiwisaver goals. Click here: https://pauldeklerk.trafft.com/services/kiwisaver-advice-meeting • Stay Informed: Keep abreast of economic developments and market trends that may impact your investments. I sent out a monthly "Unlocking KiwiSaver" newsletter in an effort to keep my clients informed. If you want to receive my newsletter, please fill in the form below.
For free guidance on choosing the best KiwiSaver strategy for your needs, contact me (Paul de Klerk) at www.pauldeklerk.co.nz.
Your KiwiSaver is more than just a savings account—it’s your gateway to a secure future. Stay informed, stay proactive, and keep unlocking its potential! 
PAUL DE KLERK
Paul de Klerk (FSP110367) is a Kiwisaver and investment specialist working for the Financial Advice Provider known as De Klerk Business Services Ltd (FSP1105978). Nothing in this article should be considered as personal financial advice. If you need personalised investment advice, speak to Paul for free at www.pauldeklerk.co.nz/contact. For a disclosure statement visit www.pauldeklerk.co.nz/disclosure By Paul de Klerk Investment Specialist (FSP110367) In the investment world the saying goes that words talk, but numbers scream. And they are sure screaming when it comes to the latest Kiwisaver performance reports: BENCHMARKS: S&P500 +23.40% NASDAQ100 +22.50% See screenshots below for reference sources. How does your Kiwisaver provider growth fund compare? 1. NZ Funds +28.59 % 2. AMP +23.99 % 3. Generate +23.92 % 4. PIE Funds +23.10 % 5. Simplicity +22.09 % 6. BNZ +21.73 % 7. ASB +21.45 % 8. Milford +20.64 % 9. Westpac +20.51 % 10. Fisher Funds +20.30 % 11. SuperLife +19.46 % 12. Mercer +17.81 % 13. ANZ +16.44 % Providers who have not reported results ending 30 November 2024: - Booster +17.65 % (last reported 30/09/2024) - Aurora +17.90% (as at 30/09/2024)  Some points to note:
  
By Paul de Klerk
Investment Specialist (FSP110367)
Tax emigration from South Africa can be overwhelming. With so much conflicting information out there, it’s easy to get confused. That’s why we’re here to clarify the process and highlight the key advantages of tax emigration, helping you make informed decisions.
Let’s explore some of the significant benefits of completing tax emigration. 1. Unlock Early Access to Your Retirement Savings One of the biggest advantages of tax emigration is the ability to cash out your retirement annuities and transfer the funds to your new country. Even if you’re under 55, you can surrender your annuities and receive the money in cash, giving you flexibility in how you use it. Whether it’s for settling into life in your new home country, putting down a deposit on a home, or other personal plans, the choice is yours. However, current regulations require you to have been a tax resident in another country for three years before you can access these funds, so timing is essential. 2. Easily Access Inheritance Funds in South Africa Another compelling reason to consider tax emigration is to streamline access to inheritance funds. If you don’t have a South African green ID book, opening a local bank account from overseas becomes nearly impossible. By completing tax emigration, you can set up a non-resident account to receive inheritance payouts. Executors or banks often demand proof of tax emigration before releasing funds. 3. Say Goodbye to SARS for Good Filing South African tax returns from abroad can be tedious. With tax emigration, you sever all ties with SARS, making your financial obligations in South Africa a thing of the past. Once the process is finalized, you’ll only need to file one last tax return, and then you’re free. 4. Protect Your Retirement Savings From Devaluation The rand’s value against major currencies, such as the Australian dollar, has declined significantly over the years. A decade ago, the rand was much stronger; today, it’s a shadow of its former value. By cashing in your assets now, you can safeguard their value and make the most of favorable exchange rates instead of waiting and risking further devaluation. 5. Shield Yourself From Future South African Tax on Foreign Income South Africa’s expat tax rules mean that if your annual earnings exceed R1.25 million, SARS might come after you for additional tax—especially if your foreign tax rate is lower than South Africa’s. This includes more than just your salary. Allowances like housing, travel, and other perks could push you over the exemption threshold. Tax emigration ensures that SARS cannot tax your foreign income, giving you peace of mind about your finances. Need to speak to someone about your own situation? If tax emigration is the solution you’re looking for, reach out to me for a free call. We work on a no funds, no fees basis and offer free quotes. Complete the easy form below and I will reach out to you asap with personalized guidance: NOTE: Nothing in this article is to be considered personal financial advice. For personal guidance, please reach out to me any time for a one-on-one consultation. 
PAUL DE KLERK
Investment Specialist (FSP110367)
By Paul de Klerk
Investment Specialist (FSP110367)
In this Webinar I discuss what you need to know about Tax Emigration from the South African Revenue Service (SARS).
There are 5 key benefits to Tax Emigration to be aware of. If you need to speak to me about your own personal situation, please reach out to me for a personal one-on-one Zoom call. It's free and without obligation. 
Paul de Klerk
Investment Adviser (FSP110367) NOTE: Nothing in this Webinar presentation should be considered personal advice. For personal guidance please reach out to me. All calls and consultations are free. By Paul de Klerk Investment Specialist
 Next week wednesday at 2pm the Reserve Bank of New Zealand (RBNZ) is scheduled to announce its last interest rate decision for 2024. While there are mixed expectations, the majority of bank, including ANZ, ASB, BNZ and Westpac, anticipate a significant 0.5% rate cut. Personally, I feel that a rate cut is inevitable. But with declining inflationary pressures with the Consumer Price Index (CPI) trending toward the RBNZ's target of around 2%, I am also expecting an aggressive 0.5% rate cut. But a case can be made that a more cautious 0.25% is possible. While this interest rate cut is part of the RBNZ's broader strategy to stimulate the economy, such changes can directly affect your KiwiSaver investments. Wise Kiwisaver investors are therefor reviewing their Kiwisaver structures right now in consideration of the changing economic environment. How could these interest rate cuts influence different aspects of your retirement savings? Impact on Fixed Interest and Cash Allocations: KiwiSaver funds typically hold a mix of asset classes, including cash and fixed interest investments like government or corporate bonds. These assets are closely tied to interest rate movements:
Boost for Equity Investments: Lower interest rates can have a positive knock-on effect for shares (equities), which are a key component of balanced and growth KiwiSaver funds:
This could lead to stronger performance in KiwiSaver funds with higher exposure to equities, though short-term market volatility should be expected. Currency Impacts: A decrease in the OCR can lead to a depreciation of the New Zealand dollar (NZD):
What Should You Do Right Now? Check your KiwiSaver fund type: Conservative funds may experience slower growth during a period of declining interest rates, while balanced or growth funds could benefit from rising equity prices. Assess your risk tolerance and time horizon to ensure your fund matches your financial goals. If you have never done this, I suggest you contact me for free guidance at www.pauldeklerk.co.nz/contact Evaluate the performance of your growth fund: The last 12 months has seen one of the best market performance we have ever witnessed. In light of this growth, it would be wise to evaluated your Kiwisaver providers performance to see how they have grown during this time. Click here to read my own report showing the best performing Kiwisaver growth funds over the last 12 months. Closing Thoughts An OCR cut of 0.25% or 0.5% has far-reaching effects, from softer cash returns to stronger equities and potential currency gains. By understanding these dynamics, you can make informed decisions to optimize your KiwiSaver savings. For free guidance on choosing the best KiwiSaver strategy for your needs, contact me (Paul de Klerk) at www.pauldeklerk.co.nz. Your KiwiSaver is more than just a savings account—it’s your gateway to a secure future. Stay informed, stay proactive, and keep unlocking its potential!  PAUL DE KLERK
Paul de Klerk (FSP110367) is a Kiwisaver and investment specialist working for the Financial Advice Provider known as De Klerk Business Services Ltd (FSP1105978). Nothing in this article should be considered as personal financial advice. If you need personalised investment advice, speak to Paul for free at www.pauldeklerk.co.nz/contact. For a disclosure statement visit www.pauldeklerk.co.nz/disclosure
By Paul de Klerk
Investment Specialist (FSP110367)
In the investment world the saying goes that words talk, but numbers scream. And they are sure screaming when it comes to the latest Kiwisaver performance reports:
BENCHMARKS: S&P500 +29.60% NASDAQ100 +28.15% See screenshots below for reference sources.
How does your Kiwisaver provider growth fund compare?
1. NZ Funds +34.05 %
2. PIE Funds +25.70 % 3. Generate +25.30 % 4. BNZ +24.58 % 5. Simplicity +24.14 % 6. ASB +23.59 % 7. Westpac +23.52 % 8. SuperLife +22.13 % 9. Fisher Funds +22.00 % 10. Milford +21.66 % 11. ANZ +21.48 % 12. AMP +20.21 % (last reported 30/09/2024) 13. Mercer +18.20 % (end 30/09/2024 & after tax reported) 14. Booster +17.65 % (last reported 30/09/2024) 
Some points to note:
By Paul de Klerk
Investment Specialist
In New Zealand, one of the most important steps you can take in planning for the future is making a legal Will. This is especially critical if you are a KiwiSaver member.
Here's what you need to know: Protecting Your Loved Ones A will is a legal document that outlines how you want your assets to be distributed after your death. Without a will, New Zealand's intestacy laws will determine how your estate is divided. This may not align with your wishes, potentially causing confusion and distress for your loved ones during an already difficult time. For KiwiSaver members, a will ensures that any savings or funds in your KiwiSaver account are directed to the people or causes you intend. KiwiSaver can form a significant portion of a person’s retirement savings or family wealth, and without a clear directive, it may not be distributed in accordance with your desires. KiwiSaver Account Ownership and Beneficiaries One key reason KiwiSaver members need a legal Will is the specific rules around how the funds in a KiwiSaver account are distributed after death. Even if you are married or have a de-facto partner, your KiwiSaver may not automatically pass to your partner because KiwiSaver cannot be jointly owned, like a banking account or a family home can be. Upon your death, your KiwiSaver provider will follow the instructions in your Will about where the monies should go. However, if you don’t have a Will, or if your Will is unclear, this can lead to complications. In such cases, the funds might not go to the person you would have preferred, and it may take longer to resolve. By clearly specifying your desired beneficiary(ies) in your Will, you avoid potential delays, disputes, and confusion about who should receive your KiwiSaver balance. Furthermore, a valid will can help ensure that your nominated beneficiaries are able to access the funds as quickly as possible, which can be particularly important if your KiwiSaver account represents a substantial portion of your wealth. Provide for Children and Dependent Family Members If you have children or other dependent family members, a Will provides an important opportunity to make provisions for their future. This is especially crucial if your KiwiSaver balance is substantial and could be used to provide ongoing support to those who rely on you financially. Without a Will, your family may face challenges in receiving your KiwiSaver funds or any other assets. For example, if you pass away intestate (without a Will), the division of your estate is dictated by New Zealand's intestacy laws, which may not take into account the specific needs of your children or dependents. A clear, legally valid Will allows you to designate your KiwiSaver balance (and other assets) to help provide for those you care about. Avoiding Delays and Legal Complications In the event of your death, the administration of your estate (what happens to your belongings, property, and savings) requires a legal process called "probate." If you die without a valid Will, the process of distributing your estate can take longer (much longer!) and may involve complications, disputes, and additional legal costs. This process is often more complicated for families when assets like KiwiSaver are involved. A clear, legally recognized will can help simplify the probate process. Your Will will serve as a guide for the executor (the person you designate to manage your estate), making their job easier and faster. When it comes to your KiwiSaver account, this is crucial, as your account balance may be substantial and could be tied up in the probate process for an extended period. Updating Your Will as Your Circumstances Change Life is always evolving. Whether it’s through changes in family circumstances (such as the birth of children or grandchildren), changes in your relationship status (marriage, divorce, etc.), or changes in financial status (like accumulating more savings in your KiwiSaver account), your Will needs to be updated regularly to reflect these changes. A key element to consider is the fact that KiwiSaver balances can grow significantly over time, meaning your Will may need to be amended to ensure that any new beneficiaries (or changes to existing ones) are properly accounted for. If you haven’t updated your will to reflect changes in your life, your KiwiSaver funds could end up being distributed in ways that don’t reflect your current wishes. The Peace of Mind That Comes with Having a Plan Finally, one of the most important reasons to have a Will—especially if you're a KiwiSaver member—is the peace of mind it brings. Having a legally binding document that clearly outlines how you want your assets, including your KiwiSaver savings, to be handled after your death can alleviate much of the stress and uncertainty for your family. It gives you control over your financial legacy and ensures that those you leave behind are taken care of in the way you intended. Conclusion: Don’t Leave Your KiwiSaver Balance to Chance KiwiSaver is an important asset for most New Zealanders, and it deserves the same careful consideration as any other asset when it comes to estate planning. Having a legal Will that specifically addresses your KiwiSaver account and the distribution of your funds can help ensure that your wishes are carried out and your loved ones are provided for. Whether you're just starting out in your KiwiSaver journey or have a growing account balance, taking the time to create or update your Will is an essential step in securing your financial legacy. By making sure your Will is up to date, clear, and legally valid, you give yourself—and those you care about—the best chance of avoiding unnecessary complications after you're gone. Don’t leave it to chance. Protect your future and your family's future by creating a legal Will today. 
PAUL DE KLERK
Paul de Klerk (FSP110367) is a Kiwisaver and investment specialist working for the Financial Advice Provider known as De Klerk Business Services Ltd (FSP1105978). Nothing in this article should be considered as personal financial advice. If you need personalised investment advice, speak to Paul for free at www.pauldeklerk.co.nz/contact. For a disclosure statement visit www.pauldeklerk.co.nz/disclosure
By Paul de Klerk Investment Specialist
Much has been said in the media about the importance of bringing down Kiwisaver management fees in the last few years. They lay out a good case that fees can erode the future value of your retirement funds and eat away at it's overall performance. Which is true.
But why do Kiwisaver providers charge these management fees? The obvious answer is to meet the costs of running the fund such as salaries, administrative costs, expenses and so on. However, management fees also carry with it an expectation that good investment decisions will be made on the Kiwisaver members behalf. Members expect to receive as much growth as is reasonably possible without undue risks, within the context of the goals of the Fund. This is especially true for growth funds. It is therefore reasonable to ask one question: "How has my Kiwisaver performed against passive index funds this year?" In other words, is my Kiwisaver provider delivering the goods for the fees they are charging as investment professionals? Consider that the U.S.A's S&P500 and Nasdaq100 have both returned over 33% before tax growth for 12 months to October 2024. This is one of the best growth markets we have ever seen! At the very least one would expect Kiwisaver providers to have met this performance in their growth funds. It is critical that Kiwisaver providers don't miss out on bull runs like these because they don't come around very often. A Kiwisaver provider who underperforms in these markets can dramatically impact how much money is availabe to you at retirement. But the truth is, Kiwisaver providers have not come even close to achieving 33% performance in their growth funds. All Kiwisaver providers are dramatically off the pace - except for ONE. Outside of this one provider, the next best growth fund performer is sitting at 25% after tax return for 12 months since October 2023. To me, this raises very serious questions. And I seem to be the only one asking! "Is Kiwisaver in crisis?" If not, why are they so grossly underperforming a normal passive index fund from Vanguard or iShares that one could easily buy? If there was ever a time to review your Kiwisaver provider, it is now in the midst of a fantastic growth market. If your Kiwisaver is not performing against the wider market, I suggest that you seriously reconsider the value of your provider. As an investment adviser and Kiwisaver specialist, I can help you with free guidance and provide you with more information to keep you better informed. If you want to receive my free TOP 10 Kiwisaver Growth Funds report (including reference sources), enter your details below and I'll send it to your inbox. Or contact me at www.pauldeklerk.co.nz/contact 
PAUL DE KLERK
Paul de Klerk (FSP110367) is a Kiwisaver and investment specialist working for the Financial Advice Provider known as De Klerk Business Services Ltd (FSP1105978). Nothing in this article should be considered as personal financial advice. Speak to an investment adviser before making financial decisions. If you need personalised investment advice, speak to Paul for free at www.pauldeklerk.co.nz/contact. For a disclosure statement visit www.pauldeklerk.co.nz/disclosure By Paul de Klerk Investment Specialist
 March 2020 saw a tidal wave of switches from growth funds to conservative funds when share markets around the world tumbled from the uncertainty. I'm happy to say that none of my growth fund clients switched. In fact, a large number increased their savings rate in recognition that their Kiwisaver is a long-term investment and the market was experiencing a firesale. This strategy worked out well. Because since then we have witnessed one of the best growth periods in history. For the past 12 months to October 2024, the S&P500 has grown over 34% while the Nasdaq-100 has grown over 55%. I also predicted in October 2023 that inflation would not only decrease, but it would plummet to within the Reserve Banks target range by October 2024. This has now been achieved and many see this as a catalyst for interest rates to continue to decrease. Decreasing interest rates typically mean good news for well allocated growth funds as markets rise on the back of cheaper money. The fact that so many Kiwisaver members have not switched back to Growth funds highlights the lack of education in New Zealand when it comes to retirement planning. This is why getting proper guidance from a Kiwisaver specialists is so important. The secret does not solely lie in being properly allocated to the right fund, but also making the right decisions over time as markets move and emotions run high. Being in the wrong fund will cost alot of money in the long term. But as the saying goes: "Ignorance is bliss". In other words, most people who are losing this money don't even realise that it's happening. The economic cost to their retirement future can be severe. As you go through life, your investment goals are likely to adjust. I suggest that you regularly think about your goals and consider your risk capacity versus your risk tolerance. If you're unsure how to do this, feel free to reach out to me and I will help you for free. Click here to contact Paul for free Kiwisaver guidance.  Paul de Klerk
www.pauldeklerk.co.nz Paul de Klerk (FSP110367) is an investment specialist working for the Financial Advice Provider known as De Klerk Business Services Ltd (FSP1005978). The information in this article should be considered as opinion of the author and not personal financial advice. For personal advice, reach out to Paul at www.pauldeklerk.co.nz. For a disclosure statement visit www.pauldeklerk.co.nz/disclosure
In the investment world the saying goes that words talk, but numbers scream. And they are sure screaming when it comes to the latest Kiwisaver performance reports:
BENCHMARKS: S&P500 +33.57% (before tax) NASDAQ100 +33.52% (before tax). See screenshots below for reference sources. How does your Kiwisaver provider growth fund compare to these benchmarks? 1. NZ Funds +32.25 % 2. PIE Funds +25.00 % 3. Generate +24.65 % 4. Simplicity +23.32 % 5. Milford +23.22 % 6. AMP +21.45 % 7. BNZ +21.03 % 8. Westpac +20.92 % 9. SuperLife +19.62 % 10. Fisher Funds +18.40 % 11. Booster +17.65 % 12. ASB +18.14 % 13. ANZ +16.19 % 14. Mercer +13.66 % (end 31/08/2024 & after tax reported) 
Some points to note:
By Paul de Klerk KiwiSaver and Investment Specialist  Newly released figures by Stats NZ shows that New Zealand economic activity (Gross Domestic Product - GDP) fell by 0.2% for the quarter ending June 2024. This is the third time that GDP has declined since the first quarter of 2023. Meanwhile, other countries have grown their GDP, including Australia who posted a 0.2% increase. Canada rose 0.5%, the UK posted a 0.6% rise and the United States showed 0.7% GDP growth. Why is the change in GDP important to keep an eye on as KiwiSaver investors? GDP is one of the three most watched statistics produced every three months. It is reported every quarter. Last month the Reserve Bank forecast a 0.5% drop in economic activity in the June quarter so a 0.2% decline is actually an improvement over their forecast. Note that a recession is commonly defined as two consecutive quarters of negative GDP growth. For right now, this is what I suggest that my clients focus on: The media in New Zealand are inclined to report any slip into the negative (and often overblow things in my opinion). I expect the media to continue this trend especially with New Zealand now facing a potential third recession in less than two years. I have previously discussed the varied and generally negative NZ centric information that KiwiSaver members receive (especially via the media). This invariably can negatively influence their decisions about their KiwiSaver investment. The danger is to make long-term decisions based on a short-term environment which can be extremely detrimental to the long term performance of your KiwiSaver. So to help you make better decisions and to "Be Better Informed", consider the following guidelines: WHAT HAPPENED THIS YEAR SO FAR:
OUTLOOK GOING FORWARDS:
SUMMARY: Remember that markets are forward-looking and will price in a more positive environment (even while the economic data is still disappointing). Do not panic by negative media commentary and reporting. Economic growth does not need to be booming for markets to be strong. Even in periods of modest economic growth (real rate of 0 to 1.5%) shares enjoy a positive year approximately 80% of the time and for growth in the region of 1.5 to 3.0% share markets are positive 90% of the time. The most "dangerous" position for a KiwiSaver to be in is what I call the "Lone Ranger" member. Someone who has nobody they trust to turn to for guidance before making pivotal and long-term investment decisions. Don't be a lone ranger. Contact me any time for guidance about your KiwiSaver and investment planning. I am free and very easy to reach.  Paul de Klerk (FSP110367) is a specialist investment adviser working for the Financial Advice Provider known as De Klerk Business Services Ltd (FSP1005978). For a disclosure statement visit www.pauldeklerk.co.nz/disclosure
In the investment world the saying goes that words talk, but numbers scream. And they are sure screaming when it comes to the latest Kiwisaver performance reports:
1. NZ Funds +20.37 %
2. PIE Funds +17.90 % 3. Generate +16.85 % 4. Simplicity +16.20 % 5. BNZ +15.92 % 6. Milford +14.90 % 7. AMP +14.58 % 8. ASB +14.30 % 9. Fisher Funds +13.60 % 10. Westpac +13.01 % (31/7/2024 report) 11. SuperLife +11.81 % 12. Mercer +12.32 % 13. ANZ +10.30 % 14. Booster +10.08 % (30/6/2024 report) Need free Kiwisaver guidance? 
Some points to note:
By Paul de Klerk KiwiSaver and Investment Specialist In this Webinar I discuss the principles I employed to earn almost 400% performance growth from my KiwiSaver from March 2020 to August 2024.  Paul de Klerk (FSP110367) is a specialist investment adviser working for the Financial Advice Provider known as De Klerk Business Services Ltd (FSP1005978). For a disclosure statement visit www.pauldeklerk.co.nz/disclosure
By Paul de Klerk KiwiSaver and Investment Specialist  Even in the face of doom and gloom forecasts from popular economists who predicted "higher for longer" interest rates, I predicted back in February that interest rates were likely to start falling by latest September 2024. And not just fall, but fall rapidly. And today ANZ has announced that they are slashing their short-term mortgage interest rates by as much as 0.40%. This should be good for the economy and the markets in which KiwiSaver funds are invested in. New Zealand is in desperate need of some good news and this certainly qualifies. But a word of caution: When markets start to turn bullish and interest rates start to drop, very often a sense of complacency enters as KiwiSaver accounts start growing faster. But the risk is that many KiwiSaver investors can be missing out on better growth prospects because they are not monitoring the wider KiwiSaver provider market. For example: Let's say your growth fund is sitting on 10% of annual growth at the moment. Does that sound good? Positive growth is positive growth after all. However, if you consider the current top 10 growth fund performers, even 10% annual growth is well off the pace. Three KiwiSaver Funds are currently returning over 15% annual growth. Be better informed and continue to monitor the performance of your KiwiSaver fund against what other providers are achieving in the last 12 months. The message is this: Do not neglect to review your KiwiSaver performance when times turn positive and markets become bullish. We all have a limited amount of time until we reach retirement. Time in which we may have been able to get even better growth towards a better retirement. As the saying goes: "time is money". So use it wisely.  Paul de Klerk (FSP110367) is a specialist investment adviser working for the Financial Advice Provider known as De Klerk Business Services Ltd (FSP1005978). For a disclosure statement visit www.pauldeklerk.co.nz/disclosure
By Paul de Klerk KiwiSaver and Investment Specialist In this Webinar we discuss what to do when your KiwiSaver account is falling and you are becoming concerned.  Paul de Klerk (FSP110367) is a specialist investment adviser working for the Financial Advice Provider known as De Klerk Business Services Ltd (FSP1005978). For a disclosure statement visit www.pauldeklerk.co.nz/disclosure
By Paul de Klerk KiwiSaver and Investment Specialist 
BREAKING: The U.S. Federal Reserve is about to launch a $50 billion Treasury buyback program. See schedule here.
- $8.5 billion in August - $31.5 billion in September - $10 billion in October. This can have implications for certain KiwiSaver funds that members should be aware of. When the U.S. Federal Reserve increases treasury buybacks, it can imply several things about the markets and the broader economy: Liquidity Provision: By buying back treasuries, the Fed injects liquidity into the financial system. This can help lower interest rates and make borrowing cheaper, stimulating economic activity. It often aims to support economic growth during periods of economic slowdown or uncertainty. Market Stabilization: Increased buybacks can signal the Fed's intention to stabilize the financial markets. This can be especially important during times of financial stress or volatility (such as what we observed in the Japan markets last week Friday). By buying treasuries, the Fed supports prices and helps maintain orderly market conditions. Monetary Easing: Treasury buybacks are a form of monetary easing. This can indicate the Fed is shifting towards a more accommodative monetary policy stance, potentially in response to weak economic data, low inflation, or other signs of economic distress. Interest Rates: Buybacks can put downward pressure on longer-term interest rates. This can help reduce borrowing costs for consumers and businesses, encouraging spending and investment. Signal of Economic Concerns: While buybacks can support markets, they may also signal that the Fed is concerned about economic conditions. This could include worries about slow growth, high unemployment, or other economic challenges. Impact on Dollar Value: Increased buybacks can affect the value of the U.S. dollar. Injecting more dollars into the economy can weaken the currency, which can have implications for international trade and investment flows. Overall, the specific implications will depend on the broader economic context and the Fed's communications about its policy intentions. Market participants closely watch such actions and interpret them in light of other economic indicators and Fed statements. Good KiwiSaver active fund managers will be keeping a very close eye on these developments and making appropriate moves so that their KiwiSaver members can benefit as much as possible. My own analysis of the situation is that the U.S. is now moving to a quantitative easing posture (ie: print baby, print!) and more liquidity is injecting into the economy. This is expected to cause asset prices to rise - especially appropriately allocated KiwiSaver funds. This would be a very appropriate time to review your KiwiSaver fund settings and consider your risk tolerance and risk capacity in response to these developments. 
Paul de Klerk
Note: Nothing in this article is intended as personal financial advice or a recommendation to buy/hold/sell. Speak to your investment adviser before making any financial decisions. If you do not have an investment adviser, contact me any time for personalized guidance. For a disclosure statement click here.
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