KiwiSaver Switching Explained - Why Over Half a Million New Zealanders Change Funds or Providers Each Year
Our guide explains KiwiSaver fund switches and provider transfers using official FMA and IRD data, examines why people switch (and when they shouldn't), and outlines what you need to know before making any KiwiSaver changes.
Updated 27 January 2026
Summary
Know This First: There are two types of KiwiSaver changes:
To explain what you need to know, our guide covers:
- Each year, hundreds of thousands of New Zealanders make changes to their KiwiSaver - switching between fund types within their provider (e.g. moving from a balanced fund to a growth fund), transferring to a different provider entirely, or both.
- In the year to June 2025, there were 164,929 provider transfers between KiwiSaver schemes, while the FMA reports that over 380,000 fund switches occurred within providers during the same period.
- This guide combines official data from the Financial Markets Authority (FMA) and Inland Revenue (IRD) to explain what's driving this switching activity, when changing your KiwiSaver makes sense, and when it could cost you money.
- Our guide also looks at the shift in how New Zealanders are investing - with higher-risk growth funds quadrupling their share of total KiwiSaver assets in just three years.
- While this guide is comprehensive, each section is designed to stand on its own - you can read it start-to-finish or jump directly to the parts most relevant to you.
Know This First: There are two types of KiwiSaver changes:
- Fund switches - moving between fund types (e.g. conservative to growth) within your existing provider, and
- Provider transfers - moving your entire balance to a different KiwiSaver scheme, for example, from ANZ KiwiSaver to Kernel KiwiSaver. Both are free and can be done online, but the decision to switch should be based on your goals, not short-term market movements.
To explain what you need to know, our guide covers:
- Key Findings - The Headline Numbers
- The Scale of KiwiSaver Switching - Who's Moving and Why
- Understanding the Significant Shift to Growth Funds - What the Data Shows
- Where is the KiwiSaver Switch Money Coming From and Going To?
- Why People Switch KiwiSaver - The Good Reasons and the Bad Reasons
- How to Switch KiwiSaver - The Actual Process
- Frequently Asked Questions
Thinking About Switching? See Which Funds Stand Out
- If you're planning to change KiwiSaver funds, the next question is where to go.
- We've reviewed dozens of KiwiSaver schemes and shortlisted funds that stand out for long-term growth, low fees, ethical investing, and active management.
- Popular options include Kernel, Simplicity, Pathfinder, InvestNow KiwiSaver and others - each suited to different goals and risk profiles.
Key Findings - The Headline Numbers
| Statistic | Value |
|---|---|
| Provider transfers (year to June 2025) | 164,929 |
| Fund switches within providers (FMA 2025) | 380,000+ |
| Total switching decisions annually | ~545,000 |
| KiwiSaver in high-risk funds (Category 5) | $51.5 billion (40%+) |
| Growth of high-risk funds since 2021 | Quadrupled (10% → 40%) |
| Conservative fund share (2025 vs 2015) | 16% vs 40% |
| Growth fund share (2025 vs 2015) | 48% vs 28% |
| Transfer processing (same day) | 96.8% |
| Number of KiwiSaver schemes | 38 |
What the switching data tells us:
Warning: Not all switching is good
Our View: The high volume of switching activity is broadly positive - it shows New Zealanders are paying attention to their retirement savings. However, the FMA case studies reveal a concerning pattern - many people who switch don't understand the implications of their decisions. The real issue isn't whether you should switch, but whether you're switching for the right reasons. Moving KiwiSaver providers or funds during periods of market volatility is usually best avoided, as losses can be locked in, just as they were in the early weeks of COVID.
- New Zealanders are far more engaged with their KiwiSaver than ever before. Provider transfers now exceed 160,000 annually, and when combined with fund switches, over half a million switching decisions are made each year.
- This represents a fundamental shift from the first five years of KiwiSaver (2007 to 2011), when most members stayed in default funds and never considered optimising their investments. There were also far fewer KiwiSaver providers (also known as schemes) than there are in 2026.
- The shift to growth is real and significant: In 2017, around 40% of all KiwiSaver money sat in conservative funds, according to this Morningstar report. Today it's just 16% as outlined in this September 2025 KiwiSaver report. Growth funds have surged from 28% to 48% of invested assets. We believe this change isn't just people ticking a different box - it represents a genuine shift in how New Zealanders think about long-term investing and in their wider awareness of the different funds (and KiwiSaver providers) on offer.
Warning: Not all switching is good
- FMA research during COVID-19 market volatility found that many switchers were younger, held their KiwiSaver with bank providers, hadn't received financial advice, and didn't fully understand that KiwiSaver is an investment product rather than a savings account. Those who panic-switched to conservative funds during the March 2020 crash often locked in losses and missed the recovery.
Our View: The high volume of switching activity is broadly positive - it shows New Zealanders are paying attention to their retirement savings. However, the FMA case studies reveal a concerning pattern - many people who switch don't understand the implications of their decisions. The real issue isn't whether you should switch, but whether you're switching for the right reasons. Moving KiwiSaver providers or funds during periods of market volatility is usually best avoided, as losses can be locked in, just as they were in the early weeks of COVID.
The Scale of KiwiSaver Switching - Who's Moving and Why
KiwiSaver switching activity has grown significantly since the scheme began in 2007. The table below shows annual provider transfers - people moving their balance from one KiwiSaver scheme to another.
Provider Transfers Since 2013
| Year Ended June | Number of Transfers |
|---|---|
| 2013 | 126,728 |
| 2014 | 149,407 |
| 2015 | 157,809 |
| 2016 | 140,557 |
| 2017 | 149,718 |
| 2018 | 162,982 |
| 2019 | 144,559 |
| 2020 | 126,974 |
| 2021 | 139,105 |
| 2022* | 344,098 |
| 2023 | 121,430 |
| 2024 | 143,293 |
| 2025 | 164,929 |
*The 2022 spike (344,098 transfers) was caused by the default provider review in December 2021, which moved members from old default providers to new ones as a handful of KiwiSaver schemes became default providers for the first time. This was a policy-driven transfer, not voluntary switching.
Know This: Excluding the 2022 default provider changes, annual transfers have been relatively stable at 120,000-165,000 per year. The 2025 figure of 164,929 is the highest voluntary transfer year on record, suggesting New Zealanders are increasingly willing to shop around for better KiwiSaver options.
Know This: Excluding the 2022 default provider changes, annual transfers have been relatively stable at 120,000-165,000 per year. The 2025 figure of 164,929 is the highest voluntary transfer year on record, suggesting New Zealanders are increasingly willing to shop around for better KiwiSaver options.
How Fast Are Transfers Processed?
When you switch KiwiSaver providers, your money moves quickly - the IRD has confirmed this in their 2024-25 reporting. The IRD's target is to transfer 95% of contributions within 3 days - the most recent reporting confirms they're currently exceeding this with 96.8% processed same-day.
| Processing Time | Percentage |
|---|---|
| Same day | 96.8% |
| 1 day | 1.2% |
| 2 days | 0.4% |
| 3+ days | 1.6% |
Thinking About Switching? See Which Funds Stand Out
- If you're planning to change KiwiSaver funds, the next question is where to go.
- We've reviewed dozens of KiwiSaver schemes and shortlisted funds that stand out for long-term growth, low fees, ethical investing, and active management.
- Popular options include Kernel, Simplicity, Pathfinder, InvestNow KiwiSaver and others - each suited to different goals and risk profiles.
Understanding the Significant Shift to KiwiSaver Growth Funds - What the Data Shows
We believe the most significant trend in KiwiSaver over the past decade has been New Zealanders' dramatic shift away from conservative investments toward higher-risk growth funds. It's arguably the case that New Zealand investors have traditionally looked for dividends and term deposit returns; however, the rise of US-market investing and the general awareness of growth shares align with the FMA data, confirming that growth funds accelerated dramatically since 2021.
Risk Category Changes (2021-2024)
The FMA categorises KiwiSaver funds by risk on a 1-7 scale, with Category 5 representing 'high volatility' funds (annualised standard deviation of 10-15%). The proportion of KiwiSaver in Category 5 funds has quadrupled in just three years:
| Risk Category | 2021 | 2024 |
|---|---|---|
| Category 5 (High) | ~10% | 40%+ ($51.5B) |
| Category 4 (Medium-High) | ~35% | ~35% |
| Category 3 (Low-Medium) | ~30% | ~10% |
Fund Type Changes (2015-2025)
Our table shows the broader shift in how KiwiSaver assets are allocated:
| Fund Type | 2015 | 2025 |
|---|---|---|
| Growth Funds | 28.3% | 47.5% |
| Balanced Funds | 24.5% | 28.1% |
| Conservative Funds | 40.4% | 16.2% |
| Cash/Other | 6.8% | 8.2% |
The FMA identifies several factors contributing to this significant shift:
Our View: The shift to growth funds broadly makes sense for younger KiwiSaver members with decades until retirement. However, the speed of this shift is remarkable - $51.5 billion in higher-risk funds in 2024, up from $6.8 billion in 2021. The question is whether all these investors truly understand the volatility they've signed up for. The next significant market correction will test whether this shift was informed decision-making or performance-chasing.
- Policy changes: In December 2021, default KiwiSaver accounts moved from conservative to balanced funds based on government policy (as outlined by the FMA). However, default funds only represent $3.4 billion - about 7% of Category 5 funds - so this explains only a small part of the shift.
- Strong market performance: Stock markets performed well in most years since 2017, with few periods of weakness quickly reversing. This may have made growth investments seem less risky than they historically have been.
- Inflation concerns: The return of inflation from 2021 may have pushed investors toward growth funds to protect the real (inflation-adjusted) value of their savings.
- Improved financial literacy: More New Zealanders now understand that long-term investors with decades until retirement typically benefit from higher-risk, higher-return strategies. MoneyHub, for example, publishes dozens of KiwiSaver guides, reviews, resources, and tools to help everyday New Zealanders make informed decisions, but we are one of many sources of KiwiSaver information.
- COVID-19 volatility effect: The risk indicator is calculated over a rolling five-year period. The March 2020 market crash increased measured volatility across all funds until mid-2025, pushing some funds into higher-risk categories without any change in their actual investment strategy.
Our View: The shift to growth funds broadly makes sense for younger KiwiSaver members with decades until retirement. However, the speed of this shift is remarkable - $51.5 billion in higher-risk funds in 2024, up from $6.8 billion in 2021. The question is whether all these investors truly understand the volatility they've signed up for. The next significant market correction will test whether this shift was informed decision-making or performance-chasing.
Where is the KiwiSaver Switch Money Coming From and Going To?
Data compiled from Disclose register filings for the year to June 2025 reveals a clear pattern – KiwiSaver members are moving billions away from traditional bank-owned KiwiSaver providers and toward independent operators. The net transfer figures below show which providers gained members and funds, and which saw significant outflows.In total, approximately $3.07 billion flowed into gaining providers, while $3.12 billion flowed out of losing providers.
With around $130+ billion invested in KiwiSaver nationwide at the time of the reporting, these transfers represent roughly 2.5% of all funds changing hands in a single year, suggesting a sustained and meaningful shift in where New Zealanders choose to invest their retirement savings.
With around $130+ billion invested in KiwiSaver nationwide at the time of the reporting, these transfers represent roughly 2.5% of all funds changing hands in a single year, suggesting a sustained and meaningful shift in where New Zealanders choose to invest their retirement savings.
Providers with Net Inflows (Year to June 2025)
These providers attracted more money through transfers than they lost through withdrawals. Milford and Generate stand out; Milford alone has attracted nearly $1.5 billion. Other winners include the KiwiSaver schemes of Simplicity and Kernel.
| Provider | Net Inflows |
|---|---|
| Milford | $1.47b |
| Generate | $660.3m |
| Simplicity | $257.6m |
| Kernel | $152.0m |
| Sharesies | $137.3m |
| InvestNow | $91.6m |
| Aurora | $90.3m |
| Koura | $80.7m |
| Pathfinder | $78.8m |
| NZ Funds | $45.2m |
| Craigs | $31.7m |
| KiwiWrap | $27.9m |
| Goals Getter | $14.2m |
| Always Ethical | $6.8m |
| JMI KiwiSaver | $1.0m |
| BCF KiwiSaver | $145,000 |
Providers with Net Outflows (Year to June 2025)
These providers lost more money through transfers than they gained. The big four Australian-owned banks (ANZ, ASB, Westpac, BNZ) collectively lost over $1.8 billion in net transfers, with ANZ alone losing $729 million.
| Provider | Net Outflows |
|---|---|
| ANZ | $728.7m |
| ASB | $476.6m |
| Westpac | $353.2m |
| Fisher Funds Plan | $302.2m |
| BNZ | $259.6m |
| OneAnswer (ANZ) | $241.9m |
| AMP | $207.6m |
| Mercer | $118.6m |
| Fisher Funds Two | $106.7m |
| ANZ Default | $104.9m |
| SuperLife | $84.4m |
| Pie Funds | $37.0m |
| Fisher Funds Scheme | $30.8m |
| MAS | $20.7m |
| Supereasy | $19.8m |
| NZ Defence Force | $16.8m |
| SBS | $3.6m |
| Summer | $3.5m |
| Christian KiwiSaver | $1.5m |
| Maritime | $1.1m |
| Quaystreet | $45k |
What's Driving the Shift?
The data points to several factors contributing to this movement:
Know This: While these numbers show clear winners and losers, context matters. ANZ KiwiSaver still holds the largest market share at 17.5%, followed by ASB's KiwiSaver scheme at 14.7%. The banks aren't going anywhere, but their dominance is gradually eroding as New Zealanders become more engaged with their retirement savings.
Our View: The transfer data tells a compelling story about the maturation of the KiwiSaver market. After nearly two decades, New Zealanders are no longer content to set and forget with their bank's default offering.
The shift toward independent providers, low-cost index funds, and top performers reflects a market where competition is genuinely working. However, we'd caution against chasing last year's winners. The question every KiwiSaver member should ask isn't "who was the best performer last year?" but rather "what fund type matches my timeline, and am I paying reasonable fees for what I'm getting?"
Source: Data compiled from Disclose register filings (year to June 2025) and posted by MoneyHub on Reddit in January 2026.
- Performance matters and advertising: Milford and Generate, the two biggest gainers; we believe that providers who invest in advertising and earn media coverage through above-average performance tend to see increased switching activity in the days following positive news. ANZ, by contrast, has struggled with its conservative fund ranking bottom over 10 years, and its balanced and growth funds also underperforming - our guides, such as Milford Growth vs ANZ Growth and Pathfinder Growth vs ANZ Growth, show the differences in recent performance.
- Fee awareness is growing: Low-cost index providers like Simplicity, Kernel and InvestNow all attracted significant inflows. As KiwiSaver balances grow, members are increasingly aware that fee differences compound dramatically over decades.
- Values-based investing: Pathfinder, as an example, saw net inflows, suggesting some members are actively seeking funds that align with their ethical or environmental values.
- Bank loyalty is fading: In the early years of KiwiSaver, many members simply defaulted to their existing bank. As financial literacy improves and switching becomes normalised, the "bank convenience" factor is weakening.
Know This: While these numbers show clear winners and losers, context matters. ANZ KiwiSaver still holds the largest market share at 17.5%, followed by ASB's KiwiSaver scheme at 14.7%. The banks aren't going anywhere, but their dominance is gradually eroding as New Zealanders become more engaged with their retirement savings.
Our View: The transfer data tells a compelling story about the maturation of the KiwiSaver market. After nearly two decades, New Zealanders are no longer content to set and forget with their bank's default offering.
The shift toward independent providers, low-cost index funds, and top performers reflects a market where competition is genuinely working. However, we'd caution against chasing last year's winners. The question every KiwiSaver member should ask isn't "who was the best performer last year?" but rather "what fund type matches my timeline, and am I paying reasonable fees for what I'm getting?"
Source: Data compiled from Disclose register filings (year to June 2025) and posted by MoneyHub on Reddit in January 2026.
Thinking About Switching? See Which Funds Stand Out
- If you're planning to change KiwiSaver funds, the next question is where to go.
- We've reviewed dozens of KiwiSaver schemes and shortlisted funds that stand out for long-term growth, low fees, ethical investing, and active management.
- Popular options include Kernel, Simplicity, Pathfinder, InvestNow KiwiSaver and others - each suited to different goals and risk profiles.
Why People Switch KiwiSaver - The Good Reasons and the Bad Reasons
Not all KiwiSaver switches result in a positive outcome. Some switches are well-considered decisions that improve your retirement outcome, while others are emotional reactions that can lock in losses at times of significant sharemarket volatility.
Good Reasons to Switch Include:
Bad Reasons to Switch Include:
Know This: The FMA found that provider communications during COVID-19 - emails and social media posts encouraging members to 'stay the course' - had little impact on switching behaviour. Those who wanted to switch did so anyway, often without reading the warnings, suggesting that the decision to switch is often emotional rather than rational.
Good Reasons to Switch Include:
- Lower fees: Fee differences compound dramatically over decades. Switching from a high-fee provider to a low-fee index fund like Simplicity, Kernel, or InvestNow can make a material difference to your outcome.
- Wrong fund for your life stage: If you're 25 and in a conservative fund, or 62 and in an aggressive growth fund, your fund type may not match your timeline. Younger members typically benefit from growth exposure; those approaching retirement or a first home withdrawal may want less volatility.
- Values alignment: Some members switch to ethical or sustainable funds that exclude fossil fuels, weapons, tobacco, or other sectors. This is a legitimate reason if your values have changed or you've become more aware of where your money is invested.
- Approaching a first-home withdrawal: If you're planning to use KiwiSaver for a house deposit in the next 1-3 years, reducing your risk exposure can help protect your deposit from market volatility. The average first home withdrawal is $43,000 per recent IRD data – most first home buyers don't want their balance to drop right before they settle on their home.
- Poor provider service: If your provider has poor communication, a clunky app, or unhelpful customer service, switching to a provider with better tools and engagement can help you stay on top of your retirement savings.
Bad Reasons to Switch Include:
- Chasing last year's returns: Past performance doesn't predict future returns. Switching to whichever fund topped the performance tables last year is a common mistake - by the time you've switched, market conditions have often changed.
- Panic during market drops: This is the most expensive mistake. Switching from growth to conservative when markets fall 'locks in' your losses. You sell low, then miss the recovery.
- Because a friend said so: Your friend's financial situation, risk tolerance, and timeline are different from yours - what works for them may not work for you.
- Reacting to news headlines, marketing and social media posts: Dramatic headlines, posts and adverts talking about 'the best fund' and 'social media buzz' are usually unhelpful for KiwiSaver investors with decades until retirement.
Know This: The FMA found that provider communications during COVID-19 - emails and social media posts encouraging members to 'stay the course' - had little impact on switching behaviour. Those who wanted to switch did so anyway, often without reading the warnings, suggesting that the decision to switch is often emotional rather than rational.
How to Switch KiwiSaver - The Actual Process
There are two types of KiwiSaver changes, and understanding the difference matters before you make any decisions:
Switching Fund Types (Within Your Provider):
Switching Providers (Transferring to a New Scheme):
- Switching fund types means moving between fund options within your existing provider - for example, moving from ASB's Conservative Fund to ASB's Growth Fund. Your money stays with the same scheme, and the process is straightforward.
- Switching providers means transferring your entire KiwiSaver balance to a different scheme - for example, moving from ASB KiwiSaver to Kernel KiwiSaver. This is a bigger change, but still free and relatively simple.
Switching Fund Types (Within Your Provider):
- This is the simplest KiwiSaver change you can make. Log in to your provider's website or app, find the fund switch or investment option section, and select your new fund.
- Most providers will ask you to complete a risk profile questionnaire before confirming - read it properly rather than clicking through. Processing typically takes 1-3 business days.
Switching Providers (Transferring to a New Scheme):
- Moving to a different KiwiSaver provider is also free, though the process takes longer. You apply to join your new provider online (usually 10-15 minutes), and they handle everything from there - you don't need to contact your old provider at all.
- Behind the scenes, your old provider sells your fund units, transfers the cash to your new provider, and your new provider buys units in your chosen fund. The entire process typically takes 10-20 business days, though IRD data shows 96.8% of contribution transfers now happen same-day.
What Happens to Your Money During a Provider Transfer
When transferring between providers, your money briefly sits in cash while being moved - typically just a few days. During this time, you're not invested in the market, which means if markets rise sharply, you'll miss some gains but, if they fall, you'll avoid some losses. There is no way to avoid this situation, and over a 10+ year investment horizon, this brief uninvested period is insignificant.
Thinking About Switching? See Which Funds Stand Out
- If you're planning to change KiwiSaver funds, the next question is where to go.
- We've reviewed dozens of KiwiSaver schemes and shortlisted funds that stand out for long-term growth, low fees, ethical investing, and active management.
- Popular options include Kernel, Simplicity, Pathfinder, InvestNow KiwiSaver and others - each suited to different goals and risk profiles.
Frequently Asked Questions
How often can I switch KiwiSaver funds or providers?
As often as you like - there are no limits or fees. However, frequent switching based on market movements typically hurts rather than helps your returns. Most people should set their fund type based on their timeline and leave it alone, reviewing annually or when circumstances change.
Will I lose money when I switch?
Not directly - there are no exit fees for most funds. However, when you transfer between providers, your money is briefly in cash during the transfer (typically a few days). If markets rise during this period, you'll miss some gains. Over a multi-decade investment horizon, this brief period is insignificant.
Should I switch to conservative if I'm worried about a market crash?
Usually no. If you're decades from retirement, market crashes are opportunities (you're buying more units at lower prices), not threats. The only time to consider reducing risk is when you're close to using your KiwiSaver - within a few years of a first home purchase or retirement.
My friend's KiwiSaver fund did better than mine last year. Should I switch?
One year's performance is largely random variation. The fund that tops the table one year often underperforms the next. Compare 5-10 year returns after fees, and remember that your friend's risk level may be different from yours.
I'm in a default fund. Should I switch?
Default funds are now balanced funds (since 2021), which may be appropriate for you - but you should actively choose your fund based on your timeline and risk tolerance rather than accepting whatever you were defaulted into. Review the fund type guidance earlier in this guide.
Does switching KiwiSaver affect my employer contributions?
No. Your employer contributions continue regardless of which provider or fund you choose. The 3% employer contribution (or whatever your employer pays) goes to whichever scheme you're enrolled in.
Can I split my KiwiSaver between multiple providers?
For most KiwiSaver schemes, no - you can only have one KiwiSaver scheme at a time. If you want diversification, choose a provider that offers diversified funds or multiple fund options you can switch between. InvestNow KiwiSaver is one example of a scheme that lets you invest into more than one fund/scheme and it has dozens of options.
How do I know if my current fund is right for me?
Complete a risk profile questionnaire (most providers offer these, or use the Sorted.org.nz tool). Consider: How many years until you'll use the money? How would you feel if your balance dropped 20%? Do you understand that higher risk typically means higher long-term returns?
Where does this data come from?
This guide combines official data from the Inland Revenue (IRD) KiwiSaver Statistics (to 30 June 2025), Financial Markets Authority KiwiSaver Annual Report 2025, and FMA research papers on switching behaviour and risk profiles.
