Kristian James, Generate Head of Distribution, spoke to InvestNow magazine about Generate's investment styles, strategies, and perspectives on retirement readiness.
This article was first published in InvestNow.
The InvestNow Retirement Readiness Index showed that the vast majority of Kiwis surveyed had little or no confidence that the pension and KiwiSaver will deliver what they need for retirement.
What key steps should Kiwis take today to achieve a more comfortable retirement?
The Financial Services Council released a report with similar findings, and it highlights a scary reality for many Kiwis. It should be a concern for all of us. After all, it’s our collective taxes that help fund NZ Super, and there’s a real risk it won’t be enough for many people to retire comfortably.
That’s why at Generate, we place so much emphasis on the value of advice. Your KiwiSaver account should give you confidence about the future — not uncertainty. But that only happens when you understand your options and make informed choices that align with your goals.
Some of the general advice we often share includes:
Choose a fund that suits your investment time frame and risk profile. Too many remain in default or conservative funds when you could be in more suitable funds. Understanding your investment timeframe and risk profile will help you choose the fund that is right for you. Choosing the right fund can mean the difference in tens of thousands of dollars by retirement, if not more.
Review and adjust your KiwiSaver contribution rate. Setting the right contribution rate can help you achieve your goals. Your ability to increase contribution rates may change over time too, so we recommend regularly reviewing your ability to contribute more. A small increase from where you currently are could make a substantial difference over time. You can see how this works in our calculator.
Top up your KiwiSaver account with voluntary contributions. Additional contributions—even small ones—help build momentum toward your goals These benefit from compounding returns, which can give your retirement savings an extra boost. Saving for retirement is more than ‘set and forget’, it’s about being intentional and taking an active interest in your retirement goals. It’s then about implementing the right strategies and regularly reviewing these to ensure that you continue on the right path.
How should people adjust their investment strategy to ensure they don’t outlive their savings?
With life expectancy increasing and the cost of living on the rise, many retirees are now facing the challenge of funding 20–30 years of post-work life. That means the old rule of thumb — switching to a conservative fund at 65 — may no longer be the best advice for everyone.
Rather than basing your fund choice on age alone, it’s more important to consider when you’ll actually need to access your money. Many Kiwis are working longer or phasing into retirement gradually, which means they may not need to start drawing down their KiwiSaver at 65.
If you don’t plan to use your savings until age 70 or beyond, it could make sense to remain in a growth-oriented fund a bit longer — or even consider splitting your investment between a growth and conservative fund to balance preservation with continued growth potential.
It’s also worth noting that you’re not required to withdraw all your KiwiSaver savings at retirement age. Your account can remain active, invested, and earning returns for as long as you like. That flexibility means you can access what you need, when you need it, while still benefiting from market growth and fund performance over time.
Many retirees choose to set up regular withdrawals, effectively giving themselves a steady income while keeping the rest of their balance invested. This approach can help stretch your savings further and provide peace of mind that your money continues to work for you in retirement.
Ultimately, it comes down to planning ahead, getting good advice, and matching your KiwiSaver strategy to your real retirement timeline — not just your age.
What investment approaches or asset mixes tend to work best for Kiwis aiming for a comfortable retirement?
It really depends on what you mean by “retirement.” Are we talking about reaching KiwiSaver access age at 65? Or are we talking about someone who’s actually planning to stop working and start drawing down their savings? It also depends on how much they’ll rely on their KiwiSaver account, and when they’ll need to start using those funds.
So from our perspective, the most important thing you can do is actually just get advice early. Sitting down with an adviser to build a plan that balances growth, income, and risk management is key. It needs to be tailored to your life stage, your goals, and how you plan to use your money.
There’s no one-size-fits-all answer. The right investment strategy is the one that fits your retirement timeline, your needs, and your comfort with risk. And it’s not a “set and forget” decision either — staying informed and making adjustments along the way is just as important.