Axiome’s KiwiSaver Launch – Solving the retirement equation

These are simple questions that we get as financial advisers with a complicated answer. There are many factors to consider when coming up with a target nest egg figure. Fidelity Investments, a large financial services company in the United States with $4.5 trillion in funds under management, has outlined the different considerations in the following diagram.

To help our clients answer these questions Axiome is excited to announce the launch of our new KiwiWRAP KiwiSaver Scheme. KiwiSaver is a core building block in many New Zealanders retirement plans. As financial advisers we want to identify the best solutions for our clients to help them reach their financial goals. At Axiome we recognise that everyone’s circumstances are different and investment decisions require more consideration than a generic off the shelf product can provide.

We believe in the importance of being intentional with both your spending and investment decisions. Every dollar coming in should have an assigned job. Either it is spent funding your lifestyle in the present or invested to build the desired life you want in the future. The key here is coming up with balance between living a lifestyle where you don’t feel deprived and making progress towards your long-term financial goals.

The average KiwiSaver balance has increased substantially with contributions and compounded returns in the years since the commencement of the scheme in 2007.  This makes KiwiSaver an increasingly important component of retirement savings that should receive the same deliberation and supervision that you make for your other investment decisions.

Do I have a retirement savings gap?

The savings gap in retirement planning refers to the difference between the amount of money a person has saved for retirement and the amount they will likely need to maintain their desired lifestyle during retirement. It’s essentially the shortfall between what they have and what they will require.

Calculating this involves considering various factors such as life expectancy, expected expenses in retirement, inflation, investment returns, and any pension or superannuation benefits. If the projected retirement savings fall short of the estimated needs, there exists a savings gap that the individual needs to address to ensure a comfortable retirement. Closing this gap might involve adjusting savings rates, seeking higher investment returns, working longer, or reassessing retirement goals and lifestyle expectations.

Why choose Axiome’s KiwiSaver Scheme

Choosing Axiome as your KiwiSaver provider will allow you to work one on one with an investment adviser. Your adviser can help you map out the effects of different savings rates, asset allocations or time spent in the workforce so that you can craft your own personalised version of an ideal retirement.

Axiome allows you to invest your KiwiSaver in the same wholesale funds usually only available to our private wealth clients. Due to the nature of the wholesale product offering, to make investing cost effective there is a minimum starting balance requirement of $50,000.

Unlike other KiwiSaver schemes funds placed in KiwiWRAP under our oversight have the benefit of rigorous assessment of fund manager performance and accountability from our independent investment committee. Axiome does not accept commission payments, trails or incentives of any kind. As an independent firm we are free to make truly impartial recommendations and put your interests first.

KiwiSaver is ideally part of an overarching financial plan built to meet your individual goals. An investment plan enables you to track your progress and have a clear wealth target in mind which will allow you to retire with confidence.

If you are interested in finding out more about the advantages of switching your KiwiSaver to Axiome please get in touch for a no-obligation free consultation session at www.axiome.co.nz.