How To Find An Ethical KiwiSaver Scheme
When I started a ‘proper’ job in 2016, I had to sign a lot of forms. Name, address, emergency contact details, tax information, blah blah, KiwiSaver, tick tick. Frankly, I had no idea what I was ticking when that form asked me who I wanted my KiwiSaver to be with. I knew KiwiSaver was a sort of savings scheme, but I didn’t care to ask any questions or look deeper. I ticked it and continued on with life.
On my payslip, I’d see a ‘KiwiSaver contribution’ sum, but that was never what I paid attention to. I wasn’t even inquisitive enough to ask what the total was. Call me an ignorant 20-year-old, but KiwiSaver didn’t mean a thing to me and no one stopped to talk to me about it.
Then in early 2020, I started to learn more about savings and investments. KiwiSaver finally became real to me.
What is KiwiSaver?
KiwiSaver is a voluntary savings scheme for retirement and first homeownership. If you join, you and your employer must put a certain amount of money per paycheck into your scheme. You cannot touch this until you turn 65 years old (with some exceptions like hardship, health reasons or moving overseas). The minimum amount you and your employer must contribute is 3% of your before-tax pay, but more can be contributed if chosen. Over 3 million people in Aotearoa New Zealand have KiwiSaver, and I would bet millions of people don’t know exactly where their savings are going!
What KiwiSaver scheme do I choose?
Remember how I ticked the default option when I got my first job and chose to sign up with KiwiSaver? I wish I hadn’t. The default scheme is exactly that; a default. A default that doesn’t take your age and stage into consideration, that doesn’t match your values with your scheme decisions, and cannot personally talk to you so you feel confident about where your money (and I’m talking thousands of dollars) is going. That’s where BetterSaver comes in. Gosh, I wish they existed back then!
BetterSaver gives digital KiwiSaver advice that is expert and completely tailored to your situation.
BetterSaver supports kiwis with financial advice and is on a mission to help people like me, improve their financial literacy. As someone who has gone from a KiwiSaver rookie to well-informed-but-definitely-not-an-expert, I can tell you now that understanding your KiwiSaver is incredibly important and empowering.
BetterSaver provides advice on how your KiwiSaver can work best for you with sustainability in mind:
Sustainable financially (assessing your economic situation and needs)
Sustainable for the planet (connecting you with more ethical funds that match your values)
We all know the saying ‘vote with your wallet’. As a sustainable living educator and ethical fashion enthusiast, I mention this saying at least weekly! But sometimes this ends with the tangible things around you. The more I learn about investments, the more I realise this saying should start with KiwiSaver!
In 2020, when I realised what KiwiSaver actually was, I switched my funds from my default bank fund to Pathfinder. The relief that my money was no longer in a default KiwiSaver scheme supporting things like oil drilling, gambling, and weapons, was huge. But since following BetterSaver on social media and continuing to learn more about what Pathfinder does, I’ve realised it's not about simply diverting your money away from the bad things, but acknowledging the power we have to do so much good in choosing an ethical KiwiSaver scheme.
Why do I trust BetterSaver?
Firstly, when you use BetterSaver to find a KiwiSaver scheme, they ask about your values so they can recommend a scheme that suits you. I admire this because ethics are subjective: there is no one KiwiSaver scheme that suits everyone! Secondly, their fee structure is the same across all providers they work with. This means they have no incentive to recommend you a particular scheme; their goal is simply to help find the right fund for you.
BetterSaver’s online quiz is free and there’s no obligation to switch to the fund they suggest for you. If you do want to switch, it’s an easy process and their incredible team can help with extra questions and additional guidance required. It’s about time someone put KiwiSaver ‘on the map’ and set up an easy way for people to understand and sort their investments! I’m so glad BetterSaver is spearheading this.
If you’re interested in signing up, using their easy online questionnaire, and talking to their lovely experts, do that here.
P.S. Watch our IGTV live here - I chat with Rupert and Jade about KiwiSaver, my work, and why I’m such a big advocate for empowering KiwiSaver decisions.
As a rule, I only work with brands I love, use, and can whole heartedly back. This is a sponsored blog (I can't pay my electricity bill with free products), but 100% my own words, photos, and opinion.