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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 Comments are closed.
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