KiwiSavers may be missing out on crypto currency returns, digital investment firm says
KiwiSavers may be missing out on bigger returns offered by crypto currencies with many advisors reluctant to recommend them to clients.
Swyftx analysis suggests under-diversified KiwiSaver portfolios are limiting retirement outcomes for thousands of New Zealanders.
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KiwiSavers may be missing out on bigger returns offered by crypto currencies with many advisors reluctant to recommend them to clients.
Analysis by digital investment platform Swyftx suggests under-diversified KiwiSaver portfolios were limiting retirement outcomes for thousands of New Zealanders.
Swyftx chief executive Jason Titman said if a typical KiwiSaver member had invested $36,500 in Bitcoin over the past decade, equivalent to $10 a day, they would now hold a portfolio worth about $2.8 million.
“It’s a clear example of the opportunity cost facing retirement savers when portfolios remain too narrow,” he said.
“Diversification into digital assets, even at a small allocation, could dramatically shift long-term outcomes for many Kiwis.”
Titman said New Zealand was lagging behind pension funds in countries like Canada, Germany and Singapore, which had been integrating crypto and other digital assets into broader retirement strategies.
“Digital assets are now a mainstream component of diversified investment portfolios internationally, yet New Zealand advisers are lagging in both adoption and education,” he said.
“We know that the current financial education gap in New Zealand is significant, however, when advisers are equipped with evidence-based tools and global context, they’re far more confident having conversations about diversification that includes digital assets.”
Titman said high-net-worth families had been early adopters of digital assets, recognising their growing potential as a legitimate diversification tool within a long-term investment strategy.
He said an order signed by US President Donald Trump to allow alternative digital assets in registered pension funds was another example of a wider shift in how retirement funds were managed and regulated.
“Regardless of political stance, what we’re seeing globally is recognition that younger generations want more control, choice and exposure to higher-performing asset classes.
“The question is whether New Zealand’s system will evolve fast enough to meet that demand.”
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