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KiwiSaver Digital Advice Tool Comparison

We compare the KiwiSaver Digital Advice Tools currently available to help you plan for a better retirement. We look at the features of the tools offered by BetterSaver, Koura Wealth, Milford Asset Management and Nikko am
Updated 3 August 2023

Know This First: It's not always easy to get good KiwiSaver advice. We're asked every day by users where to invest, and given our role as an independent provider of information, we can't (and would never) answer this common question. 

Summary
  • Financial Advisors who recommend KiwiSaver are, in many cases, paid a recurring commission (known as "trail") which rewards them for as long as you stay in the fund they suggest.
  • The fund advisors suggest may not be the most suitable for your needs, have an inferior long-term performance than other options and/or charge higher fees.
  • There has been a recent emergence in digital KiwiSaver advice to take the subjectivity out of traditional financial advisory. These tools are provided either by specialist platforms or KiwiSaver schemes.
  • The tools work by asking you a few key questions to provide you with a personalised KiwiSaver plan.

Our guide looks at the four main KiwiSaver digital advice tools currently in the market - BetterSaver, kōura Wealth, GoalsGetter (Nikko Asset Management), and Milford Asset Management. We cover:
To make a meaningful comparison, we look at several criteria, including: 
  1. Ease of use – i.e. How easy is the tool to navigate and use?
  2. Quality of explanations – i.e. How helpful and clear are the explanations given throughout the tool so that you can understand the information you're looking at?
  3. Risk profiler – i.e. Does the tool ask enough questions (and the right kinds of questions) to be able to assess the level of risk you're comfortable with when it comes to your KiwiSaver? Does the tool make a reasonable recommendation when it comes to how much risk (or volatility) you should have in your KiwiSaver portfolio?
  4. Contribution rates – i.e. Does the tool allow you to edit your KiwiSaver contribution rate and see how that impacts your final KiwiSaver balance, what that means for your retirement and how that fits into your current lifestyle? Our view is that most New Zealanders are not saving enough for their retirement; a tool looking at your contribution rate is helpful when it comes to planning how much you'll need to contribute to retire (or buy your first home) with a balance you're happy with.
  5. Fund selection – i.e. What fund(s) does the tool recommend to you, and how much information does the tool provide around what the fund(s) mean for you reaching your goal: the more information, the better.
  6. Ongoing advice – i.e. the tool offer continuing help and guidance once it offers a fund or scheme recommendation? E.g. once you sign up based on their advice, will they help you in the future? We believe ongoing advice is critical to ensure you remain on track for your KiwiSaver goals (be that saving for a home or retiring).
  7. Fees – What fees will you be charged for signing up with the provider? We'll lay out their fees and explain how that impacts you in the long run.

What is the difference between a digital advisor and an in-person advisor?

A few different factors separate digital and human advisors, with core differences around price and knowledge application. We outline these in detail below:

1. Price:
  • The traditional way of receiving financial advice has been to find yourself a financial advisor. Financial advisors generally charge fixed fees to help set you up with a financial plan, and then ongoing annual fees, which may be a set amount and/or include asset-based fees that are a percentage of your assets. For example, 0.50% p.a. of your total investment. 
  • For this reason, personalised financial advice has generally only been accessible to those with a higher net worth, who are in a position to spend money on an advisor.
  • We believe that everyone should be able to access financial advice regardless of income or assets, but given the costs of serving clients, this is uneconomic.
  • Digital advice differs significantly from human advice; the four financial digital advice tools available in New Zealand are all free of charge. The service is provided most likely as a customer acquisition tool; you aren't signing up for anything long-term (other than maybe an email list you can unsubscribe from). 

2. Knowledge application:
  • A human advisor can leverage both the most current financial news and market updates and their own professional experiences when providing financial advice. They'll also consider all of your personal factors, aspirations and anything else that may impact how you reach your financial goals.
  • Therefore, their advice arguably can be personalised to a level that current digital advice tools cannot achieve.
  • However, it's important to remember that humans can make mistakes and certainly aren't perfect. This means the quality of the advice you receive will always depend on the knowledge and calibre of the advisor and the possibility of human error.


Our View: Digital advice tools work within set parameters and boundaries based on specific formulas. So, while they might not ask you the most detailed, personal questions, the questions they do ask are well designed and thought out. You are allowing them to interpret your answers and provide accurate advice, and there's no room for a human lapse in judgement when the tools do this.

KiwiSaver Digital Advice Tools - BetterSaver vs Koura Wealth vs Milford vs Nikko am

​BetterSaver

BetterSaver launched a digital advice tool in April 2021. Unlike the other tools reviewed in this guide, BetterSaver isn't a KiwiSaver provider. Instead, they partner with various providers and offer you their recommendation based on those they partner with. Their current partners are Aon, Booster, Pathfinder, Fisher Funds, Generate and Milford.

Our View: BetterSaver works with several leading schemes (Milford, Fisher Funds, Booster and Pathfinder being key examples). However, it's not a complete comparison of the KiwiSaver market. For example, if you wanted to invest in an index-based growth fund like Simplicity, this advice would not be offered as Simplicity is not a partner.

BetterSaver's Digital Advice Tool in a Nutshell:
  1. Ease of use: BetterSaver's questionnaire is straightforward and easy to complete, and includes questions around ethical investing which no other tool asks about.
  2. Quality of explanations: BetterSaver's tool doesn't offer many explanations when filling out their questionnaire as to why the questions are asked. However, the tool explains why they have recommended you a particular fund (e.g. because you're going to withdraw soon to buy your first house or because you are risk-averse).
  3. Risk profiler: BetterSaver has several questions about risk appetite and factor in these answers when recommending your KiwiSaver portfolio.
  4. Contribution rates: This is not asked 
  5. Fund selection: BetterSaver is new to the market, and the schemes they work with are, arguably, some of the best-performing in the short and long term. Many appear on our favourite KiwiSaver funds guide. Beyond the showcased fund, BetterSaver also lists other funds that they believe would be your next best options. They also offer the ability to compare the recommended fund against your current KiwiSaver provider if you chat with one of their advisors. 
  6. Ongoing advice: Unknown
  7. Fees: Funds charge between 0.84% and 1.49% p.a. + $18 - $36 p.a membership fee: The fees you pay will depend on the provider you end up choosing, so they can vary (see below for more detail). The schemes they work are all actively managed, meaning that the fees are higher than low-cost providers like Simplicity and some bank-branded schemes like BNZ.

Know This: BetterSaver charges their KiwiSaver partners 0.25% p.a. for recommending customers. Our view is that this fee structure lends itself to KiwiSaver providers who already charge higher fees who can pay BetterSaver 0.25% of your KiwiSaver balance every year. For example, if your KiwiSaver balance was $20,000, a BetterSaver-recommended fund would pay $50 a year to BetterSaver. 

BetterSaver's recommended schemes are as follows: 

kōura Wealth

kōura Wealth launched its digital advice service in October 2019. It’s a simple, easy to use tool, with a focus on ensuring New Zealanders adequately contribute to their KiwiSaver. 

Our View: kōura launched its digital advice tool alongside its KiwiSaver scheme, with a focus on ensuring New Zealanders save enough for their retirement. The tool recommends a personalised portfolio and provides the option to edit your portfolio asset allocation, or build your own portfolio altogether. Our interpretation of FMA KiwiSaver data suggests most New Zealanders don't save enough; kōura's tool helps visualise savings and whether or not they'll be enough.

kōura Wealth's Digital Advice Tool in a Nutshell:
  1. Ease of use: kōura's questions are intuitive to complete and take a couple of minutes.
  2. Quality of explanations: kōura's information covers why they've recommended you the portfolio they have, how your portfolio should change over time, and what your expected returns could be. 
  3. Risk profiler: kōura asks about your risk appetite and uses your responses to recommend your KiwiSaver portfolio.
  4. Contribution rates: You can set your current contribution rate and change it (moving it up/down) to see how your rate will impact your final balance, so you can decide what rate will help get you to your dream retirement or first home. One unique feature of the contribution tool is that it allows you to compare your expected retirement income with your current income. This comparison lets you assess what changes might be required to your lifestyle at different contribution rates. 
  5. Fund selection: kōura offers six different funds (from low-risk fixed-income to higher-growth focused equities). After completing the digital advice tool, kōura provides you with a recommended, personalised portfolio asset allocations depending on your goals (e.g. 70% growth assets, 30% income assets). You have the option to accept their recommendation or build a portfolio including one or several of their funds.
  6. Ongoing advice: Unknown
  7. Fees: kōura charges the same fee irrespective of what fund you invest in.

​Milford Asset Management

Milford Asset Management launched their KiwiSaver digital advice tool in March 2021. The result is an easy to use tool that has invested in a user-friendly experience.

Our View: Milford's tool carefully considers an individual's risk before determining an investor type. However, like all scheme-driven digital advice tools, users are listed to the platform's funds or associated funds. We liked the question "When you think of the word "risk" in a financial context, which of the following words comes to mind - Danger, Uncertainty, Opportunity or Thrill?" The tool also lets you download a detailed Statement of Advice which helpfully outlines your current situation and potential investment growth.

Milford Asset Management's Digital Advice Tool in a Nutshell:
  1. Ease of use: Milford's questionnaire is clear and straightforward to walk through, with detailed questions. The average user would take around 5 minutes to complete.
  2. Quality of explanations: The explanations given through the questionnaire are detailed but straightforward. Their recommendation comes with an explanation as to why they've labelled you as a particular type of investor (e.g. "conservative"). The tool then outlines the actual portfolio make up, including the allocation to Growth and Income Assets.
  3. Risk profiler: The questions are thorough and detailed to ascertain your risk appetite when recommending your KiwiSaver portfolio.
  4. Contribution rates:  You can set your current contribution rate and also change it (moving it up/down) to see how your rate will impact your final balance. This feature helps you decide what rate will help get you to a comfortable retirement or first home. However, there is no comparison with your current income levels.
  5. Fund selection: Milford offers six different funds with different levels of risk and volatility. The tool provides you with a recommended risk profile and fund (e.g. Milford KiwiSaver Aggressive Fund), which includes information around the fund's asset allocation.
  6. Ongoing advice: The Milford KiwiSaver Plan’s Digital Advice tool will check in with you annually. This check in is a friendly reminder to revisit the advice, and if needed re-engage and re-use the tool to ensure all advice provided is reflective of your current circumstances.
  7. Fees: While it's hard to compare fees across providers due to varying fee structures, Milford is usually one of the more expensive when it comes to fees. Their fees will depend on the type of fund you're in.

​*Milford also has performance-based fees, which can impact the overall total fees you could pay in a given year. Our guide to the Milford KiwiSaver Plan explains these fees in further detail.

​GoalsGetter (Nikko Asset Management)

Nikko Asset Management (Nikko am) launched its robo advice tool in March 2019, naming the service GoalsGetter.

Our View: While GoalsGetter provides some useful information around what KiwiSaver fund to choose, it's arguably more suitable for people with a high level of financial and KiwiSaver knowledge. For example, the tool only asks questions when you select the option to be 'recommended funds'; otherwise, users can input all of their funds without ever seeing a personal recommendation.

While it provides users with information, it's less helpful to the everyday New Zealander who may not have enough knowledge to make an informed decision without some more prompts, explanations and advice.

Nikko am's Digital Advice Tool in a Nutshell:
  1. Ease of use: Despite being a new tool, the user experience is arguably clunky and not intuitive. Unlike the other tools offered, it doesn't walk you through each step. Users complete the questions without guidance or explanations - it's mostly presented on one screen, and it's not very user-friendly.
  2. Quality of explanations: The tool doesn't offer any explanations when filling out the initial questions. It also has minimal explanations unless you ask for 'Recommend funds' (whereby more information is given). However, overall, this tool is very light when it comes to practical and simple explanations. In our testing, we were bucketed into a 'Growth Fund' without an explanation of why. The details of the fund, including fees, are clear and well-explained.
  3. Risk profiler: Nikko am asks two questions about risk, but users can only navigate to the risk section if they choose recommended funds (which are optional). The risk questions are self-selective compared to the other tools that ask specific situational questions to determine your risk for you. There is a risk that 'risk' is being under-assessed.
  4. Contribution rates: Users can input and edit your contribution rate and see how this will impact your estimated end value of your KiwiSaver. 
  5. Fund selection: Nikko am offers nine different funds, and once you ask for a recommendation, they provide you with further details on the fund(s) and your asset allocation. 
  6. Ongoing advice: Unknown
  7. Fees: Nikko's fees depend on which funds you're invested in (with growth-focused funds charging on the higher end).

KiwiSaver Digital Advice Tools - Frequently Asked Questions

Digital advice and KiwiSaver work side-by-side, but there are many questions about what the ultimate goal is. We believe all of the digital tools above have maximising individual wealth at the right risk level as their primary focus. We've listed two common questions below to better explain how digital advice works.

Are any digital advisors independent?

In most cases, no. Digital advice tools are generally built by a company that offers financial services (like kōura and Milford, both being KiwiSaver providers, offering a KiwiSaver digital advice tool). This means that it's in their interest to provide you with helpful information that may encourage you to sign up with them. However, with all of the rules and regulations imposed by the FMA, there is minimal risk of digital tools offering advice that isn't based on facts and number crunching. 

Why do people get KiwiSaver advice?

We are fans of KiwiSaver and believe it is an excellent financial product that is going to help millions of New Zealanders in their retirement. However, 1 in 3 members don't contribute, and the average balance remains low (around $30,000). Receiving advice is an excellent way for everyday New Zealanders to become better informed, so there are no surprises down the line.

We believe:
  1. KiwiSaver is an investment, not a savings account. For this reason, it's not a "set and forget" financial product. Your needs at 25 are different to those at 65, and therefore, we believe regular reviews of your KiwiSaver fund (rather than logging in to check the balance) is a good idea.
  2. KiwiSaver should be personalised to suit your goals. What fund(s) should you be in? Are you in the right risk-weighted fund? Are you close to withdrawing your KiwiSaver, and if so, is your fund appropriate while you get close to doing so? Personalised advice will help you answer all of these questions and more.
  3. For most New Zealanders, contributing 3% of their salary won't be enough to fund a comfortable retirement. Superannuation rates pay for the basics; we believe that for most New Zealanders, a 3% personal and 3% employer contribution rate won't deliver a sizeable nest egg. We consider a personal contribution rate of 8-10% is more likely to give people the retirement they're hoping for.
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