Protecting your retirement nest egg from scammers

Scammers are increasingly sophisticated and changing tactics all the time. Being able to access your KiwiSaver savings makes you a prime target. Help protect yourself by understanding how an investment scam works and the common red flags.

4 minute read

As you approach 65, you may become a target for scammers because you will soon have access to your KiwiSaver retirement savings. Scammers have a number of tricks up their sleeves to convince you to give them access to your personal or financial information. They often use sophisticated methods and pose as reputable investment firms or banks.

Common investment scam red flags

If you’re thinking about using your KiwiSaver savings to invest elsewhere, remember to tread carefully. You can help protect yourself by knowing what red flags to look out for, so you can confidently spot the common signs of a scam:

Sense of urgency

Staying invested in KiwiSaver 

For over 65s, KiwiSaver provides an easy way to keep saving with lots of flexibility around contributions and access. Just because you turn 65 doesn’t mean you can’t stay invested in KiwiSaver. Just make sure you review your fund choice to make sure you’re in the right one for your situation. 

When considering a withdrawal, explore all your options such as setting up regular withdrawals or taking smaller lump sums when you need them. There are usually no processing or handling fees associated with making withdrawals, so you have flexibility to manage your money throughout your retirement. Check with your KiwiSaver provider what their minimum withdrawal amounts are as these can vary depending on the withdrawal type.

Your current KiwiSaver provider or bank will likely also offer other savings and investment options that might be suitable for your situation, such as term deposits or savings accounts. It’s a good idea to explore these options and talk to your provider about your needs to see what they can offer you. It can be reassuring to use a financial provider you have an existing relationship with.

Investment scam checklist:

If you do find yourself looking at new investment providers, here’s a checklist to follow. Always do your own research – you need to fully understand the opportunity and risks associated with making a new investment.

1.  Never contact investment firms through online contacts, emails, links or phone numbers sent to you directly.
   
   
2. Only contact the investment firm directly using contact details from their official New Zealand based website. Scammers often impersonate legitimate companies and employees.
   
   
3. Make sure the investment firm is licensed by searching for the company name on the Financial Markets Authority www.fma.govt.nz website before moving any funds.
   
   
4. Check the ‘warnings and alerts’ page on the FMA website.
   
   
5. Make sure email addresses you’re given are consistent with the registered company’s official website address. Slight differences such as a ‘1’ instead of an ‘I’ can be hard to spot.

Choosing the right investment for you is a big decision so take your time to do the research. Stop and think before you act. Visit bnz.co.nz/latestscams to see recent scam examples that are active in the community. You can also check the Financial Markets Authority website (www.fma.govt.nz) for investment scam warnings. If you’re unsure or have concerns, then talk to your KiwiSaver provider, a registered financial advisor or your bank. And if you think you've been scammed, contact your bank immediately.

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