15 June 2026

Investing outside of KiwiSaver

When does it make sense?

KiwiSaver is a great foundation for many New Zealanders to invest for a 1st home or for retirement. It’s simple, disciplined, and supported by incentives. However, there are situations where it can make more sense to invest outside of KiwiSaver.

Where KiwiSaver falls short

Situations where KiwiSaver may not be the best investment choice include if you:

Own a first home or don't want to buy one.
Already have enough money in KiwiSaver for your 1st home or retirement.
Have alternate ways to fund your retirement (e.g. a work pension or business).
Have investment goals other than a 1st home or retirement.
Want greater access and control without the money being "locked-in".

Common pitfalls to watch out for

Moving beyond KiwiSaver on your own can be positive but it introduces new decisions, and with that, new risks.

Not having clear goals or a plan

Without clear goals and a plan, it’s hard to know which investments are suitable and even harder to know whether you’re actually on track.
Overcomplicating things

It’s easy to get drawn into complex strategies or too many investments. Simplicity often leads to better long-term outcomes.
Chasing past performance

Trying to pick the “best” investments based on recent returns often leads to poor decisions. A disciplined approach generally matters more than trying to pick winners.
Taking too much or too little risk

Online media hype or a friend's "hot pick" can result in too much risk. While focusing on "bad news" investment stories can result in too little risk to achieve your goal.

Investment options outside KiwiSaver

There is no limit to the weird and wonderful ways people try to make or lose money! Many think they are investing sensibly when they are in fact speculating with very high risk. Did you hear about the guy who invested his house deposit in crypto? Yeah, that didn't end well!

Some people like to own an investment directly such as a rental property or a share of a friend's private business. However, this puts all your "eggs in one basket" and requires that you invest a lot of time upfront and ongoing attempting to become an expert. Also, recent & projected poor investment property returns have many people looking for a better option.

Managed funds are a better alternative for people who want to keep their own time and leave investment decisions to the professionals in exchange for a fee. They pool your money with others so that you can indirectly own a small share of many different investments to reduce your risk via diversification. KiwiSaver funds are a type of managed fun but with extra incentives and strict withdrawal restrictions.

However, the huge choice of managed funds available can make it difficult to research the options and effictively combine them into portfolios that suit your goals.

How can Nautilus Help?

Our Investment Advice service starts with your goals and provides a clear plan to achieve them. We tailor our service to your situation and needs, from help getting started through to private wealth management with scenario modelling.

Nautilus are independent financial advisers. Our range of professionally researched managed fund portfolios offer choices for different investor types, including socially responsible options. They are selected based on the evidence-based principles:

Keep investment fund management costs low.
Use investments with broad diversification and a stable and consistent management.
Use investments with higher expected returns, adjusted for risk, where possible.
Use investments that can be sold or bought quickly and with low transaction costs.
Adopt a strategic approach to investing that does not try to time markets.

If you want a clear plan and ongoing support to achieve your investment goals, reach out to Nautilus, your trusted investment specialist.

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General information only, not financial advice. No liability accepted for errors or reliance. If needed, seek professional advice.