Generate KiwiSaver Scheme
Generate is a KiwiSaver provider that is often overlooked when people come to decide which provider they should invest with. Despite this overlooking, Generate can be a great KiwiSaver provider whose scheme can work extremely well for you. Generates KiwiSaver scheme has been rated as Gold by SuperRatings for the past four years and in the Morningstar KiwiSaver survey to June 2019, all three of Generates KiwiSaver funds ranked either first, second or third for their one year and five year performances. Generate are KiwiSaver specialists with a focus on retirement savings, with all their funds run by investment managers who carry out extensive research on all prospective investments. Finally, in their new member survey, 97% of Generate KiwiSaver members rated them as four or five out of five when asked: “Can you rate the experience out of 5– with 1 being not very informative or helpful and 5 being really valuable information and a good use of my time.” To find out if Generate is right for you, compare KiwiSaver providers now with glimp!
Why choose a Generate KiwiSaver scheme?
Generates KiwiSaver schemes are well performing for New Zealanders. Over a five year period, their Conservative fund has grown by 7.32% per annum, their Growth fund by 10.99% per annum and their Focused Growth fund by 11.5% per annum. KiwiSaver withdrawals are easy with Generate; if you have had a KiwiSaver Account for at least three years, then you can withdraw your entire account balance to buy your first home. Joining KiwiSaver also means that you will receive a 3% contribution from your employer, as well as a government contribution of up to $521.43 a year, which makes reaching a comfortable retirement or a first home seem far easier.
Generate KiwiSaver Fees
All KiwiSaver funds have fees attached to them. Generates fees include an administration fee of $36 per annum for each of their three funds; on top of this, an annual fund fee of 1.23% of your KiwiSaver balance is charged for their Conservative fund. This annual fund fee then rises to 1.47% of your account balance for Generates Growth fund, and finally to 1.59% of your balance for Generates Focused Growth fund. A comparison of Generates fees with other KiwiSaver companies is easy on glimp.
Types of Generate KiwiSaver funds
Generates Conservative KiwiSaver fund works well as a low risk fund type; it is likely to have less volatility than the rest of Generate’s funds but also has the lowest long-term returns as it has the lowest weighting of growth assets (32.5%). This is because Generates Conservative fund provides a conservative investment in mainly income assets (which make up 67.5% of the fund) such as actively managed cash, fixed interest, property and infrastructure assets, Australasian equities and international equities. The recommended timeframe for investing in this fund therefore is less than five years, as it’s growth is less than Generates two other funds.
Generates Growth fund provides high long term returns, but has a higher level of volatility than its Conservative fund. The fund is made up of 82.5% growth assets and 17.5% income assets: the objective of the fund is to provide a growth investment return over the long term period through investment in portfolio of actively managed cash, fixed interest, property and infrastructure assets, Australasian equities and international equities. Because of the mix of volatility and growth, Generates Growth fund is recommended for investors with a timeframe of five or more years.
Generates Focused Growth Fund acts as their most aggressive fund, with 95% of the fund being invested in growth assets and just 5% being invested in income assets. The objective of the Focused Growth Fund is to provide a higher growth investment return over the long term through investment in a portfolio of actively managed cash, fixed interest, property and infrastructure assets, Australasian equities and international equities. Because of the high ratio of investment to growth/income assets, there is a high degree of volatility within Generates Focused Growth Fund: because of this, it is recommended for investors with a ten year or more timeframe.
Generate KiwiSaver FAQs
If you have worked in Australia anytime since 1992 and have an Australian Super account then you are now able to bring that money home. Transferring your Australian Superannuation savings to your KiwiSaver account in NZ is easy and means that you avoid paying two sets of fees and can make it easier to keep track of your savings.
Yes! Not only can you withdraw your entire account balance to lay down a deposit for your first home, you can also access the NZ government's homestart grant, which is a grant up to the value of $10,000 that is used to help pay for your first home.
No. However making changes to your fund type and viewing your KiwiSaver is still easy, with the latter able to be viewed on your online banking account and the former able to be changed through their website. Alternatively, you can request a call or email Generate through their website.
Your contributions to your Generate KiwiSaver account help to influence your KiwiSavers performance immensely. You can choose to contribute 3%, 4% or 8% of your income regularly to your KiwiSaver, and your employer is required to contribute a minimum of 3%. Additionally, for every dollar you contribute, the government will contribute 50 cents up to the value of $521.43 a year.