Are you stuck in a default KiwiSaver fund?

Hundreds of thousands of New Zealanders are in a KiwiSaver fund they never actually chose. If that’s you, it’s worth five minutes to understand what it means.

What is a default fund?

When KiwiSaver auto-enrols you through a job and you don’t pick a fund yourself, you’re placed in a default fund. Default funds are designed to be a reasonable temporary home – typically a balanced mix – while you decide what you actually want.

The key word is temporary. A default fund is a holding pen, not a recommendation tailored to you. It doesn’t know your age, your goals, or whether you’re saving for a house next year or retirement in 30 years.

Why it might not suit you

A balanced default fund can be:

• Too cautious if you’re young with decades ahead – you may be giving up years of higher growth.
• Too risky if you’re about to buy a first home or you’re near retirement – a downturn could hit at the worst time.
• Just not what you’d choose – for example, if you’d prefer a responsible or ethical fund, or a lower-fee option.

None of that makes default funds “bad”. They’re simply not personalised – and your KiwiSaver is one of the biggest investments you’ll ever own.

How to tell if you’re in one

• Log in to your provider’s app or website and check your fund name – it may literally say “default”.
• If you never remember choosing a fund, assume you were defaulted.
• Not sure who your provider even is? You can find out through IRD, or we can help you track it down.

What to do about it

Being in a default fund isn’t an emergency – but it is a prompt to make an active choice. That means matching your fund to your timeframe and your comfort with risk, then checking the fees are fair.

Switching, if it makes sense, is usually free, doesn’t trigger tax, and keeps your money invested throughout. It’s typically about a 10-minute job, and we handle the paperwork.

Run a free check to see how your fund compares, or book a review and we’ll tell you honestly whether a change is worth it.