Westpac NZ is sharing its top three new year's resolution suggestions to help New Zealanders get financially fit in 2026.
Check you're in the right KiwiSaver fund
"Making sure you're in the right fund for your stage of life is really important," says Westpac NZ Programme Manager Financial Wellbeing Warren Ngan Woo.
"Whether you're saving for your first home or looking ahead to retirement, thinking about when you want to use your savings and how you can maximise them in the meantime can make a big difference."
Taking five minutes to check out the Westpac KiwiSaver Scheme Fund Chooser and Calculator, or equivalent tools, will help ensure you're in the right fund and setting yourself up for the future you want.
Over a 10-year period, the difference between investing in a conservative fund and a high growth fund could be significant.
Take the example of someone with a KiwiSaver balance of $37,079 with a salary of $71,760 (both around the New Zealand average), making 3% contributions (personal and employer) and receiving a 3% annual pay rise. Investing in Westpac KiwiSaver's Conservative Fund would have grown their initial balance to approximately $120,700 over the past 10 years, while being in the High Growth Fund would result in a balance of around $184,000 - a difference of more than $63,000.*
Draw up a budget and check for spending "leaks"
A recent Westpac customer survey of nearly 1,100 people revealed only 36% were planning to follow a budget to help them manage their money in 2026.
"Taking some time to work out what you usually spend each month, then mapping out a budget and savings plan for the year, can save you huge amounts in the long run," says Mr Ngan Woo.
Use an online budget tool and tools that categorise spending (like Westpac's CashNav® app) to see where your money's going. This can also help you to avoid spending "leaks" such as ongoing subscriptions - recent Westpac data showed customers were spending an average of $33 each month on television service subscriptions. And while we all love our flat whites, spending $6 even just three times a week adds up to nearly $1,000 over the course of a year.
Review your mortgage structure
If you have a mortgage, take half an hour to look at your payments and make sure you're maximising their impact.
"Once you've locked in rates, it can be easy to set and forget, but making a few small changes to your repayments can lead to meaningful savings over the term of your mortgage," says Mr Ngan Woo.
For starters, look at rounding your regular repayment up a small amount. For instance, monthly repayments on a $750,000 loan at 5.89% over 30 years will be $4,444. If you round up your monthly repayments to $4,600, you'll save more than $86,000 in interest over the life of the loan and pay it off two years and seven months sooner.**
If you know there's a period of the year when you might have a bit of extra cash, think about increasing your fixed home loan repayments for a short time. Some banks, including Westpac, will let you increase your payments by up to 20% over your minimum payment through the app, and then reduce them back down again whenever you need to.***
If you do have savings or even a typically high balance in an everyday account, make sure to link those accounts to your floating loan balance to "offset" the amount of interest you pay. For instance, again taking the case of someone with a home loan balance of $750,000 over a 30-year term, making monthly repayments of $4,444. If they currently have $2,500 in savings and plan to continue saving $200 a month while maintaining around $500 in their transaction account, on a Westpac Choices Floating Home Loan with Offset floating interest rate of 5.89%, they could pay off their loan around two years sooner and save around $119,000 in interest. **1
Interest rates are subject to change without notice. Westpac's home loan lending criteria, terms and conditions apply. A low equity margin may apply.
*Modelled returns have been used for periods prior to the Westpac KiwiSaver High Growth Fund's establishment, assuming a 10.21% over 10 years. The Westpac KiwiSaver Conservative Fund annualised return over 10 years is 4.33%.
Fund returns are after annual fund charges but before tax, to 30 November 2025, and also assume a Government contribution of $260.72 per year.
** These examples are based on a $750,000 home loan, paid over 30 years, fixed at a constant 5.89% interest rate and do not constitute financial advice. This is a demonstration of the potential impact of various changes and doesn't reflect interest rate fluctuations or the specifics of any individual situation. Talk to us for personalised advice on paying your home loan off sooner.
1 This scenario compares a $750,000 loan over 30 years fixed at 5.89% to a split loan of $747,500 fixed for 28 years at 5.89% and $3,000 floating with offset that is fully offset with savings, with an additional $2,400 contributed to savings each year.
*** Allow three working days for changes to be effective. Eligibility criteria applies.
