Is KiwiSaver Worth It? A Guide to Sharesies KiwiSaver Scheme

Is KiwiSaver Worth It? A Guide to the Sharesies KiwiSaver Scheme

Picking a KiwiSaver provider can feel a bit like choosing a phone plan. There are dozens of options, the fine print blurs together and you end up wondering whether it actually matters which one you go with.

It does matter. And the fact that you're researching your options already puts you ahead of the thousands of New Zealanders who've never looked twice at where their money sits.

This guide is designed to help you figure out whether Sharesies KiwiSaver Scheme is for you. Not every provider suits every person. What matters is landing on one that fits your goals, your KiwiSaver risk profile and how involved you actually want to be with your KiwiSaver investments.

What Makes Sharesies KiwiSaver Scheme Different

Most KiwiSaver schemes work the same way: you pick a fund (conservative, balanced, growth or something in between), and a fund manager invests your money on your behalf. 

The Sharesies KiwiSaver Scheme still offers professionally managed base funds (nine of them, ranging from conservative through to high growth). But you can also pick your own KiwiSaver investments if you want to. Sharesies calls this "self-select", and it means you can allocate up to half your investment plan to individual companies and exchange-traded funds (ETFs) of your choice to a max of 5% in each pick. These limits help to keep your investment plan diversified. You can choose from a list of more than 150 options across NZ and US markets.

You might have 60% in a growth base fund and then spread the remaining 40% across companies and ETFs you believe in. Or you could put everything into a single base fund and not think about it again. It's flexible that way.

There's also the Sharesies US500 Fund, which gives you access to the S&P 500 index through the popular Vanguard S&P 500 ETF (VOO), structured as a PIE fund for tax efficiency. This kind of global exposure is one of the more straightforward ways to diversify beyond NZ.

And then there's the app. Sharesies built its reputation as an investing platform first, so the KiwiSaver experience slots right into an interface that's already designed for everyday investors. You can track your KiwiSaver balance, see exactly what you're invested in and make changes from your phone.

You Might Love Sharesies KiwiSaver Scheme If...

You Want a Say in Where Your Money Goes 

If the idea of choosing your own companies and ETFs sounds like something you would want to do, self-select was built for you.

Maybe you care about ethical investing and want to back specific companies. Or you might have done your research on a particular sector that you’re interested in.

Either way, Sharesies gives you control, with guardrails to keep things diversified (each individual pick is capped at 5% of your plan).

You're Interested in US Market Exposure

Figuring out which KiwiSaver fund you should choose often comes back to diversification. NZ's share market makes up roughly 2% of the global picture. The US500 Fund and US self-select options let you spread your KiwiSaver investments across some of the world's largest companies without needing a separate brokerage account.

You Like Managing Money Through an App

Some people like paper statements and phone calls. Others want to check their KiwiSaver balance while waiting for a coffee. If you're in the second camp, the Sharesies app makes it easy to see your returns, adjust your investment plan and make voluntary top-ups from your Sharesies Wallet whenever it suits you.

You're Already Using Sharesies

If you're investing through Sharesies' regular platform, adding KiwiSaver keeps everything in one place. Same login, same familiar interface and your KiwiSaver account sits alongside your other investments so you can see the full picture.

You've Got Time on Your Side

The KiwiSaver benefits of compounding really show up over longer timeframes. If retirement is decades away, you've got more room to ride out market ups and downs, and potentially more to gain from growth-oriented funds and self-select options.

Sharesies KiwiSaver Scheme Might Not Be for You If...

You Want Someone Else to Handle Everything
Self-select is totally optional. You can absolutely just pick a base fund and leave it. But if the whole appeal of KiwiSaver for you is "set it and forget it forever," and you have zero interest in ever engaging with your investments, a simpler scheme with fewer options might make more sense.

You'd Rather Not Think About Your KiwiSaver Risk Profile

With more choice comes more responsibility. Sharesies provides tools like a built-in risk indicator and the investment plan builder to help you understand how your choices affect your overall risk level. But you do need to engage with those tools, at least initially. If that sounds like a chore rather than an opportunity, it's worth weighing up.

You Want to Trade Your Self-Select Picks Frequently

The fee structure works well for people who set up their plan and adjust it occasionally. But if you're planning to buy and sell individual picks on a regular basis, transaction fees can add up.

Self-select KiwiSaver investments attract a transaction fee of 1% on amounts up to $1,000, plus 0.1% on amounts above that, so frequent trading could eat into your returns.

You're Very Close to Withdrawing

If you're about to retire or make a first-home withdrawal within the next year or two, now probably isn't the time to overhaul your KiwiSaver investment strategy. That's true regardless of which provider you're with. It's more about timing than the platform itself.

Breaking Down the Features

Base Funds: Your Foundation

You've got nine base funds to choose from, and you can mix and match. Each one invests in a single underlying fund managed by established providers like Smartshares (SuperLife), Pathfinder, Pie Funds, Milford, Generate and Fisher Funds.

The KiwiSaver risk profile of each fund ranges from conservative (fewer ups and downs, lower expected returns over time) through to high growth and aggressive (more volatility, higher potential returns over the long run).

You can put your entire investment plan into one base fund, or split across several for broader diversification. At least 50% of your plan needs to sit in base funds.

Self-Select Investments: Your Picks

This is the headline feature. On top of your base funds, you can pick from over 150 companies and ETFs listed on NZ and US exchanges. You allocate up to 50% of your plan to your picks, with a maximum of 5% in any single pick, a limit designed to keep your portfolio diversified even when you're choosing your own path.

As your contributions come in, they're invested according to your plan. And you can change your picks or allocations whenever you want.

The US500 Fund

If you want broad US market exposure without picking individual stocks, the Sharesies US500 Fund tracks the S&P 500 index via the Vanguard S&P 500 ETF (VOO). The annual fund charge sits at just 0.09%, with a 0.50% currency exchange fee when buying or selling units. And because it's structured as a PIE fund, your tax is handled based on your prescribed investor rate (PIR) and Sharesies sorts it for you.

The Investment Plan Builder

Before you commit to anything, you can play around with the investment plan builder on the Sharesies website. It lets you experiment with different combinations of base funds and self-select picks, shows you an estimated annual fund charge and gives you a risk rating from 1 (low) to 7 (high).

If you're happy with what you've built, you can use it to join straight away or save it for later.

Tax: The PIE Advantage

All Sharesies KiwiSaver Scheme funds are portfolio investment entity (PIE) funds. That means the tax you pay is based on your PIR rather than your marginal tax rate. For most people earning over $48,000, that works out more favourably. Sharesies reports and pays the tax on your behalf. You don't need to do a thing.

Frequently Asked Questions

When figuring out whether KiwiSaver is worth it, and specifically whether Sharesies is the right provider, a few practical questions tend to come up.

How much will I actually pay in fees? 

It depends on what you choose. If you stick with a single base fund, you'll pay the annual charge for that fund (which varies by provider but is included in the unit price, so you won't see it deducted directly). Add self-select picks, and transaction fees kick in when you buy or sell. The investment plan builder gives you a personalised fee estimate before you join.

Can I switch if I change my mind?

Yes. You can change your base funds, add or remove picks, and adjust allocations at any time. If you decide to leave Sharesies altogether, transferring to a different provider is straightforward.

What if markets drop?

They will, at some point. Every KiwiSaver provider is exposed to market movements. What matters is whether your investment plan matches your timeframe and your KiwiSaver risk profile.

If you're decades from retirement, short-term dips are part of the journey. The Sharesies app makes it easy to check in on your investments, but "checking in" doesn't mean you need to act every time markets wobble.

Is self-select risky? 

It can be, if you concentrate too much in one area. That's why Sharesies caps individual picks at 5% and requires at least 50% in base funds. These guardrails are there to help you stay diversified, even when you're making your own calls.

How to Get Started

If the Sharesies KiwiSaver Scheme sounds like it could work for you, the process is pretty quick.

You'll need a Sharesies account (which is free to set up) and you'll need to be 18 or over. From there, Sharesies asks a couple of questions about what you're planning to use your KiwiSaver balance for and the kind of funds you're interested in. Then you build your investment plan. Choose your base fund or funds, add self-select picks if you want to and confirm.

If you're transferring in from another provider, Sharesies handles the transfer for you. It typically takes around 10 business days for the transfer to be finalised, and there's no fee to switch. If you're new to KiwiSaver entirely, setup takes about five days for the account to be set up but money for all first time joiners is held with IRD for 62 days before moving over to the Scheme. This is the same no matter which scheme you choose and is just there in case people change their minds.

You can start exploring with the investment plan builder before making any decisions, no commitment required.

So is KiwiSaver Worth It?

For most working New Zealanders, the KiwiSaver benefits (employer contributions, government contributions and the power of compounding over time) make it one of the best savings tools available. The short answer is yes, it's almost certainly worth it.

Whether Sharesies is the right provider comes down to what you value. If you want more control over your KiwiSaver investments, access to US markets and a platform that makes it easy to stay connected to your money, it's well worth exploring.

The best KiwiSaver decision is an informed one. Use the investment plan builder to see what a personalised plan could look like, or compare your options using Glimp's KiwiSaver comparison tool.

Sharesies Investment Management Limited is the issuer of the Sharesies KiwiSaver Scheme. The product disclosure statement (PDS) for the Sharesies KiwiSaver Scheme has been lodged, and may be viewed on the Disclose Register or on our documents page.