Conservative Fund
A KiwiSaver or managed fund that invests mostly in bonds and cash. Lower risk, lower returns. Suitable if you're close to retirement or plan to withdraw soon.
A conservative fund invests primarily in lower-risk assets like bonds, term deposits, and cash. Typically, a conservative fund might have 80% in income assets (bonds/cash) and 20% in growth assets (shares/property).
The advantage is stability — your balance won't swing dramatically when markets drop. The trade-off is lower long-term returns compared to growth funds.
Conservative funds are generally recommended for people within 5-10 years of retirement, people planning to withdraw for a first home soon, or those who genuinely can't tolerate seeing their balance go down temporarily.
Why this matters
Choosing the right fund type is one of the biggest decisions you'll make with your KiwiSaver. If you're under 40 and not planning to withdraw soon, being in a conservative fund could cost you tens of thousands of dollars in missed returns over your working life. But if you're withdrawing for a first home next year, a conservative fund protects you from a market downturn at the worst time.
Learn more
Read our guideRelated KiwiSaver terms
KiwiSaver
New Zealand's voluntary retirement savings scheme. You contribute a percentage of your salary (3%, 4%, 6%, 8%, or 10%), your employer matches at least 3%, and the government contributes up to $521/year. Money is locked until age 65 (with exceptions for first home and hardship).
KiwiSaver First Home Withdrawal
After 3+ years of contributing, you can withdraw most of your KiwiSaver balance to buy your first home. You must leave $1,000 in the account.
First Home Grant
A government grant of $3,000-$10,000 per person for first home buyers who've been contributing to KiwiSaver for 3-5+ years and meet income caps ($95K individual / $150K combined).
PIE Tax
Portfolio Investment Entity tax. The tax rate on your KiwiSaver and managed fund returns. Your rate depends on your income: 10.5% (under $14K), 17.5% ($14-48K), or 28% (over $48K). Set it correctly to avoid overpaying.
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