“We definitely have more women taking a conservative option in the fund selection for their KiwiSaver account than men do. Men tend to go for higher growth funds,” Fiona Mackenzie told the webinar.
“And that’s actually quite a problem for the very long term. If you are not taking enough risk in your KiwiSaver account by focusing on growth, particularly if you start young, then you are going to end up with a very different outcome by the time you retire many years later.”
She said it’s important all investors take time at the start to make sure they are picking the right fund for their age, stage and risk profile.
“If you are young, you are in a better position to take more risk and that gets you a much better outcome in the longer term.”
Fiona Mackenzie has also observed a cultural difference between people in New Zealand and overseas.
“I think as well there’s also a bit of a cultural thing happening in New Zealand. In the [United] States we all talked about 401Ks, which is the equivalent of KiwiSaver.
“I think that’s changing in New Zealand because the balances are starting to get up to a level where people realise, hey, this is a real asset for me and I do need to pay attention to it.
“The more we can talk about it, and demystify it, and break it down into something that is really achievable by all of us, I think that’s a good thing for New Zealand long term.”
The webinar covered a wide range of other topics, including how the panellists became interested in investing, how to and what advice would they give their younger selves.
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