Ethical KiwiSaver In New Zealand: How Our Family Invests For The Future
Having a child has a funny way of making the word “future” feel a lot more real.
Before Orchard arrived, Tim and I obviously thought about our finances, our retirement and the future we wanted to create. But becoming parents has added another layer to it. We want to give Orchard financial security and opportunities later in life, but we also care deeply about the kind of world she is going to inherit.
Those two things aren't separate.
The money we're investing for the future is being used in the present. Our investments help businesses increase their market value, essentially making them more successful right now. So as we've started thinking more seriously about Orchard's financial future, we've also been looking at our family's money more broadly and asking a question that feels very ‘on brand’ with Ethically Kate:
What is our money actually helping fund?
Our own KiwiSaver account was the obvious place to start
I have been a Pathfinder KiwiSaver Plan member since 2019 when Pathfinder first began offering a KiwiSaver; I am a proud early adopter.
Tim, on the other hand, only made the switch this year.
Not because he'd carefully investigated all the options and decided his existing provider was definitely the best one (it absolutely wasn’t by the way). Quite the opposite. KiwiSaver had simply become one of those things happening quietly in the background and even my frequent prompts to get him to change to Pathfinder didn’t budge him. That man hates admin.
In the end I told him I would do it myself (with his permission of course). So I gathered his information and it took me about 6 minutes to change his KiwiSaver provider to Pathfinder. 6 MINUTES!! 7 years of procrastination for a 6 minute task that made a lot of positive impact (we’ll talk about that later).
I suspect Tim is not the only one in this kind of situation and to be honest I was in the same lazy mindset before I changed in 2019 too.
When we both entered the workforce we didn't conduct an exhaustive investigation into KiwiSaver providers. Does anyone?! We were young, someone put forms in front of us, and we ended up enrolled.
But now we know that our KiwiSaver accounts could eventually become one of the largest pools of money many of us will ever invest in.
That's the strange thing about it. We can spend hours researching a $100 ethical t-shirt purchase while tens or hundreds of thousands of dollars quietly accumulate in our KiwiSaver account without us ever really investigating what that money is doing.
Your KiwiSaver isn't simply sitting in a savings account.
It's invested.
So the question then becomes… where?
What does an “ethical” KiwiSaver actually mean?
Words like ethical, responsible and sustainable sound reassuring, but they don't necessarily mean the same thing to everyone. Ethics are not black and white.
One person's absolute no-go investment might be something another person considers acceptable.
There are obvious examples that the majority of people want to avoid. But then there are much greyer areas. What about a company doing genuinely positive work but also operating in an industry you disagree with? What about businesses transitioning away from environmentally harmful practices who cannot make that transition overnight? What about mining when some of those minerals are needed for renewable-energy technology?
Ethical investing involves trade-offs and judgement calls, just like so many other parts of trying to live more sustainably. That's why we've found transparency much more useful than simply looking for an “ethical” label.
Tools like Mindful Money will help you search for your current KiwiSaver fund and see where your money is invested, including companies and sectors that may conflict with your values. It helps you look beneath labels like “ethical” or “responsible” and compare your fund’s investments against issues you personally care about. It is a free tool too!
We think about where our food comes from. We think about the businesses we buy from. We think about our power, transport, home and waste.
Why wouldn't we also think about where our investment money goes?
Why our family chose Pathfinder
The fact that our KiwiSaver account is invested today and isn’t just a lump sum sitting idly somewhere, paired with our strong drive to make money decisions that align with our values is what ultimately drew us to Pathfinder.
Pathfinder actively makes decisions about what it will and won't invest in based on its ethical investment policy which is available for everyone to read on their website. That doesn't mean every decision is simple or that everyone will draw their ethical lines in exactly the same place as them, but their transparency and public information is key here.
Here are a few main bullet points that stand out to me in the ethical investment policy:
Avoid harm: Pathfinder aims to screen out or limit investments in areas it believes cause unnecessary harm to people, the planet or animals. This includes areas such as controversial weapons, human rights abuses, animal testing and certain fossil-fuel activities. For example, Pathfinder does not invest in Meta or Amazon and are looking to divest from Uber too.
Invest positively: It doesn't only focus on what to avoid. Pathfinder also tilts its portfolios towards companies aligned with positive investment themes and the UN Sustainable Development Goals.
Ethics aren't always black and white: Pathfinder explicitly acknowledges that “ethics are not binary.” Companies can change, transition or sit in complicated grey areas, so it has an Ethics & Investment Committee and a formal process for investigating companies of concern and exceptions.
Be transparent & active: Pathfinder publishes its holdings, produces an annual Sustainability Report, monitors investments on an ongoing basis, and uses shareholder voting and engagement to try to influence company behaviour.
Another assumption I’d like to challenge is that choosing an ethical investment provider automatically means accepting poorer financial performance.
For example, when looking at the Sorted Smart Investor tool that compares returns, Pathfinder’s KiwiSaver Growth fund sits at 6.44% p.a. (average return over 5 years as at June 2026) while the average Growth KiwiSaver Fund is 5.48% p.a.
Of course this is only one example and this data changes over time depending on what is happening in the world and how Pathfinder’s holdings change, but more importantly for us, the goal is not to choose between our values and building a financially secure future. We want to consider both and we can consider both.
We've also really valued the human side of Pathfinder.
Recently, when we started thinking about investing specifically for Orchard, we spoke with Trent from their advice team. What we appreciated was that the conversation didn't begin with him telling us which Pathfinder product to buy. It started with questions.
What are you investing for? How long might the money be invested? When might Orchard need it? How much flexibility do you want? How comfortable are you with risk?
That conversation ended up changing what we decided to do (more on that soon).
Starting a KiwiSaver account for your children
Orchard is only one. It seems a little ridiculous to be thinking about her retirement in 64 years. But it also means she potentially has an extraordinarily long investment timeframe ahead of her.
We want to start building something now rather than waiting until we're magically at a point in life where we have “more money” to invest.
The same ethical questions we applied to our own KiwiSaver decisions apply to her money.
It's not just how much could this become? It's also what could this money help fund during the decades that it's invested?
Turns out you can open a KiwiSaver account for a child in New Zealand from any age and thankfully Pathfinder offers KiwiSaver accounts for children too.
Starting a KiwiSaver account for your child is a great simple solution to setting them up for the future. It also means the conversation around KiwiSaver is more likely to happen earlier for them, rather than another Kate and Tim situation happening that ends up in ticking a box when they first become employed and not thinking about what that box tick truly means.
What we landed on for Orchard
After talking everything through with Trent, we decided to set up a KiwiSaver for Orchard and also invest in managed funds.
My parents started investing for me when I was born and because that money wasn't locked away until retirement, it was able to help me through university. That personal experience has definitely shaped how we think about this and the reason why we started both.
So we've started Orchard with:
$1,000 in Pathfinder's Ethical Trans-Tasman Fund
$1,500 in Pathfinder's Global Responsibility Fund
We've opened a Pathfinder KiwiSaver Plan account for Orchard too.
That money has a completely different job. It's there for the seriously long term. So Orchard now joins both of us as a Pathfinder KiwiSaver Plan member! The whole process was surprisingly easy to set up and one of the biggest benefits for us was being able to actually talk our thoughts through with Pathfinder's advice team first (thanks Trent!).
Their advice is obviously only around Pathfinder products so I recommend getting advice from a non-biased financial advisor too.
Thinking about doing something similar for your family?
The biggest takeaway for us has been to start early, even if you're starting small, and know where your family's money is actually being invested. A KiwiSaver could be invested for decades. That’s decades of your money funding businesses that are either helping create a better future, or contributing to harm for people and the planet.
So look at everyone’s investment options. Ask questions. Look beneath generic claims. Find out what your provider actually invests in rather than relying on words like “ethical” or “responsible”, and consider whether those investments align with your values and the future you're trying to create together.
For our family, Pathfinder was the provider that answered our questions, substantiated its claims, was transparent about where our money goes, and ultimately aligned with our values. Now all three of us are proud Pathfinder KiwiSaver Plan members .
Sign yourself or your child up to The Pathfinder KiwiSaver Plan here.
Our relationship with Pathfinder:
We've had a relationship with Pathfinder for many years, both personally and through Ethically Kate.
This article is part of a paid partnership with Pathfinder and we receive a referral fee when eligible people join Pathfinder and mention us.
Importantly, the views and experiences we've shared here are our own. We've chosen Pathfinder for our family's KiwiSaver and investments because we genuinely use and believe in what they're doing. Back in 2019 Kate became a Pathfinder member separate to the Ethically Kate x Pathfinder commercial relationship.
Frequently Asked Questions
What is an ethical KiwiSaver provider?
An ethical KiwiSaver provider invests using an ethical framework (based on principles) as a primary filter alongside financial considerations when deciding where members' money is invested. However, providers can take different approaches to what they consider ethical, so it's worth looking beyond the label and understanding the provider's actual investment policy and holdings.
Can children have a KiwiSaver account in New Zealand?
Yes, children can join KiwiSaver. The rules, benefits and contribution arrangements for children differ from those for working adults, so I recommend looking at how KiwiSaver works for someone under 18 before signing up.
Can you open a KiwiSaver account for a baby?
Yes. A KiwiSaver account can be opened for children, including babies. Starting young gives the investment a very long potential timeframe, although KiwiSaver is generally inaccessible until an eligible first-home withdrawal or retirement. Note: you will need an IRD number for them before signing up.
How easy is it to switch my KiwiSaver provider?
It only takes about five to seven minutes. All you need to do is complete the form with your new provider and they will manage the handover with your previous provider. There is no bulky paperwork involved and it happens really quickly; just like switching your electricity provider.
Is my KiwiSaver account automatically invested ethically?
No. KiwiSaver providers and individual funds have different investment approaches. If this matters to you, investigate your provider's responsible investment policy and actual holdings rather than assuming your KiwiSaver investments align with your personal values. Mindful Money is a great tool for this.
How can I find out what my KiwiSaver account is invested in?
Start with your KiwiSaver provider's website (or member portal), investment policy and fund information. If you can’t find what you’re looking for (a list of holdings, for example) contact them to request these. Independent New Zealand resources such as Mindful Money can also help you investigate what your KiwiSaver fund holds.
Does being with an ethical KiwiSaver provider mean lower returns?
Choosing investments based partly on ethical considerations doesn't automatically mean accepting lower returns. Investment performance depends on many factors, including the assets held, investment strategy, fees, market conditions and timeframe. Past performance also doesn't guarantee future returns. Use tools like Mindful Money, Sorted, and Morningstar KiwiSaver surveys to compare funds.
Can I have KiwiSaver account and managed funds at the same time?
Yes. They can serve different purposes. In our case, we've chosen managed funds for money we may want Orchard to access earlier in adulthood, alongside a KiwiSaver account for much longer-term investing.
Should I open a KiwiSaver account for my child?
That's a decision that depends on your family's circumstances, goals, timeframe and preferences. This blog describes what we chose for our family and shouldn't be treated as personalised financial advice. If you're unsure, consider speaking with a qualified financial adviser.
Pathfinder Asset Management Limited is the issuer of the Pathfinder KiwiSaver Plan. A Product Disclosure Statement for the offer is available at pathfinder.kiwi. Learn more about how they invest ethically by reading their Ethical Investment Policy & Exceptions Register on their website.
Pathfinder encourages all investors to receive financial advice before making their investment decision. Pathfinder is authorised to provide financial advice if you would like support with your investment decisions. You can learn more about Pathfinder’s service in their Financial Advice Provider (FAP) disclosure statement.