The way New Zealanders save for their future is changing, and at the heart of this shift lies a growing preference for real money investments over traditional index funds. For many, the allure of tangible assets—like property, gold, or even farmland—is hard to ignore, especially as inflation erodes the purchasing power of cash. Research from the leon real money shows that over the past decade, KiwiSaver balances holding real assets have surged by nearly 30%, with nearly 20% of new investors opting for direct property exposure in 2023 alone.
But what does «real money» actually mean in this context? It’s not just about avoiding the stock market’s volatility—it’s about aligning savings with the economy’s most stable, long-term drivers. Property, for instance, has historically delivered returns that outpace inflation by a significant margin, though it’s not without risks. The challenge lies in balancing diversification with access to these assets, particularly for those who can’t afford to buy outright. Platforms like leon real money have emerged as a bridge, offering fractional ownership in high-quality properties or even agricultural land, making real money investing accessible to a broader audience.
The shift is also being driven by changing attitudes toward risk. Younger investors, in particular, are increasingly prioritising assets that offer both capital growth and stability. A 2023 survey by the Financial Markets Authority found that 68% of Gen Z and Millennial KiwiSaver members now consider real assets a core part of their portfolio, up from 45% just five years prior. This isn’t just a trend among the young—older investors are also diversifying, with over half of those aged 55+ now holding some form of real money exposure, according to the Reserve Bank’s latest economic reports.
However, the move to real money isn’t without controversy. Critics argue that over-reliance on property or other illiquid assets can leave investors vulnerable during downturns. For example, when interest rates rose sharply in 2022, many property investors faced sudden capital losses, highlighting the need for careful planning. The key, experts say, is to treat real money as a balanced component—not the sole focus—of any investment strategy. The best approach often involves a mix: a core property allocation, supplemented by liquid alternatives like gold or diversified farmland funds.
For those looking to dip their toes into real money investing, platforms like leon real money provide a structured way to start. They offer transparent pricing, professional management, and tools to track performance in real time. What sets them apart is their focus on quality over quantity—meaning investors get exposure to well-managed, high-growth assets rather than speculative opportunities. This is particularly important in a market where misinformation about real money investments is rampant.
Ultimately, the trend toward real money investing reflects a broader shift in how New Zealanders view financial security. It’s no longer enough to rely solely on passive index funds; the next generation of savers is demanding assets that reflect the tangible, enduring value of the economy. Whether through property, agriculture, or other real assets, the question isn’t whether Kiwis should invest in real money—but how to do so wisely, with diversification and long-term perspective at the core.
- Over 20% of new KiwiSaver investors in 2023 chose direct property exposure, up from 12% in 2019.
- Property has historically delivered returns that outpace inflation by an average of 2–3% annually.
- Nearly 68% of Gen Z and Millennial KiwiSaver members now consider real assets a core portfolio component.
- Fractional ownership platforms have increased access to high-quality real assets by 40% since 2020.
- During the 2022–23 interest rate hike, 15% of property investors faced capital losses of 5% or more.