By Richard Souster, Financial Adviser – KiwiSaver Specialist

At Aurora Capital, one of the best parts of my job is helping Kiwis feel more confident about their financial futures. Whether you’re just starting your savings journey or reviewing your goals, understanding how your KiwiSaver investment works is key. Here are four of the most common questions I hear — and the answers I share with clients every day.

1. What KiwiSaver fund should I be in?

This is a really common question — and an important one. The best fund for you depends on three key things:

• Your time frame – when do you plan to use the money?
• Your goal – is it for a first home or for your retirement?
• Your comfort with risk – how do you feel about your balance going up and down along the way?

Generally, funds with higher growth potential also come with more short-term ups and downs, so they’re best suited to longer timeframes. If you’re planning to use your KiwiSaver balance within the next few years, a lower-risk fund might be more appropriate. For example:

• If you’re 30 and planning to buy your first home in three years, you might look at a Conservative Fund. These are lower risk, which means less chance of a sudden drop in value right when you need the money.
• If you’re 40 and saving for retirement 25 years from now, a Balanced or Growth Fund could give your money more opportunity to grow over time — even if there are a few bumps along the way.

💬 That’s why it helps to talk to an adviser. A quick conversation can make sure your fund fits your life stage and your goals.

🌿 And no matter which Aurora KiwiSaver Scheme fund you’re in, your money is being invested responsibly — supporting companies that are adapting to tomorrow’s challenges and helping build long-term financial strength.

2. When should I think about changing funds?

Changing funds isn’t something you need to do often — and it’s best not to switch just because your balance has dropped temporarily. One of the most common mistakes we see is changing funds during a market downturn. It can feel like a way to avoid further losses, but in reality, it often means locking in those losses and missing out when the market recovers. So when is the right time to change?

• When your goals change, or the timeframe for needing the money gets shorter or longer — or if your current fund no longer feels right for you.

For example:

• You’ve been in a Growth Fund, but now you’re buying a house in two years. You might want to move to a lower-risk option to protect your balance.
• You’ve just bought your home and now your next goal is retirement — it could be time to move to a fund with more long-term growth potential.
• Your plans have shifted — maybe a house purchase is further away than expected. That could change what kind of fund is right for you now.

💬 No matter the situation, it’s worth checking in with your Adviser. They can help make sure any changes are based on your goals — not on short-term market noise.

3. Should I be contributing more to my KiwiSaver account?

This is a question we hear often — and it’s a smart one to ask.

The minimum contribution for most employed members is 3% of your pay¹, but that doesn’t mean it’s the right amount for you.

If you can afford to contribute more — the other options are 4%, 6%, 8% or 10% — the long-term impact can be significant. That extra step today could mean thousands more in your KiwiSaver account by the time you need it.

And if you’re self-employed or not in paid employment, it’s still worth putting money in regularly. That’s because, for every $1 you put in, the government adds 25 cents up to a maximum of $260.72 each year. That means contributing just over $20 a week to make the most of this great benefit².

💬 Not sure how much you’re contributing, or whether it’s enough for your goals? We can help you work through your options — and make a plan that fits your budget and future.

4. Why does my KiwiSaver balance go up and down?

This is a really common question — and it makes sense that people wonder about it.

Your Aurora KiwiSaver Scheme account is invested in a managed fund, which means your money is combined with that of other members and invested in a mix of things — like shares, bonds, and other investments — selected by professional fund managers.

When you put money in, you’re buying units in your chosen fund.

Think of it like buying bricks in a house that’s being built. Each contribution adds more bricks. Over time, your house (or investment) grows. But even while you’re building, the value of the house can rise or fall depending on the market — just like in real life.

So even though you’re adding to your KiwiSaver account regularly, the value of what you own can go up or down. That’s because the assets your fund is invested in also change in value over time.

📉 If markets dip, your balance might go down — even though you still own the same number of bricks. The upside? Your regular contributions are buying more bricks at lower prices — which can really pay off over the long term.

📈 When markets rise again, the value of your units usually increases too.

🔁 These ups and downs are a normal part of investing. The key is to keep your long-term goal in mind and avoid reacting to short-term changes.

💡 Aurora’s diversified, multi-manager investment approach is designed to help smooth out some of those ups and downs, so your investment journey is more stable — even when markets get bumpy.

5. Want to talk it through?

Whether you’re checking your fund, thinking about topping up, or just want a second opinion, a quick chat with your Adviser can help you feel more confident about your next step.

Talk to your Adviser today or get in touch with the Aurora Client Care Team
0800 242 023
hello@aurora.co.nz

¹ The minimum employee contribution will increase to 3.5% from 1 April 2026.

² To be eligible for the government contribution, you need to:

• be a member of a KiwiSaver scheme; and

• be between the ages of 16 and 65; and

• have total taxable income of $180,000 or less per year; and

• mainly live in New Zealand; and

• not have made a withdrawal for a life-shortening congenital condition.

If you meet the eligibility criteria for part of the KiwiSaver year, your government contribution will be pro-rated.