Should I move my KiwiSaver fund to cash as I get closer to retirement?

Retirement isn't a single date for your investments. 

If you expect to use your KiwiSaver savings gradually through retirement, the money you'll need first has a shorter timeframe than money you may leave invested for another 10 or 20 years. 

Cash tends to have smaller ups and downs than shares, but it also generally has lower long-term growth potential. That's why moving everything to cash simply because you're approaching 65 may not suit everyone.  

The right investment mix depends on: 

• when you'll need your savings.  

• how comfortable you are with market ups and downs.

• how much you'll rely on KiwiSaver in retirement.  

The important thing is to think about when you'll need your money. If you plan to use your KiwiSaver savings gradually through retirement, some of your savings may have a much longer investment timeframe than the money you'll need first. 

Your fund choice should reflect your timeframe, goals and comfort with market ups and downs rather than your age alone. 

Our Fund Finder tool can help you: 

• Find a fund that suits your goals and investment timeframe.  

• Understand how investment risk affects potential long-term returns.  

• Review whether your current fund is still right for you. 

All investment involves risk. Markets can go up and down and future returns are not guaranteed.

This is general information only and does not constitute personalised financial advice. Smart has not considered your individual circumstances. Before making any investment decision, you should seek advice from a licensed Financial Advice Provider. Smart, NZX Limited and their respective directors and employees accept no liability for any loss arising from reliance on this information.