Switching KiwiSaver Providers — How and When to Change

Switching KiwiSaver Providers — How and When to Change

You can move your KiwiSaver money to a different provider at any time, and it costs nothing. We think that is the single most freeing fact about the whole scheme, and most members never use it. You apply to the provider you want, they arrange the transfer, and you never have to ring your old one.

What trips people up is not the paperwork. It is the timing. Switch at the wrong moment — straight after a market fall, or into a conservative fund five years out from retirement — and you can lock in a loss that a bit of patience would have recovered. The process is easy. The decision deserves an afternoon.

There is also a middle option most people do not know exists: leave your existing balance where it is and send only new contributions to the new fund. The Financial Markets Authority notes this can be a sensible step if you are moving to something more volatile.

How We Researched This Guide

We built this from three places. The rules and figures come from Inland Revenue, the Financial Markets Authority, MBIE and Kāinga Ora, plus the KiwiSaver Act 2006, which is set out in full on legislation.govt.nz. The fund-level numbers come from our KiwiSaver fund database, which is built from the Government's Disclose Register.

Two things stood out. First, the contribution rules changed on 1 April 2026 — the default employee and employer rate is now 3.5 per cent, not 3 per cent, and it rises again to 4 per cent on 1 April 2028. Plenty of material online still says 3 per cent. Second, our five-year return tables are dominated by single-sector funds concentrated in United States shares, carrying risk indicators of 5 or 6. A five-year window that flattered those funds is not a fair comparison against a diversified growth fund, and we say so rather than letting the table speak for itself.

ValueHub's Trusted Providers

We've researched the providers below — here are our picks for this category.

Simplicity

★ 4.9 ★★★★★ (592 Reviews)

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Simplicity is a nonprofit KiwiSaver and investment fund manager charging 0.25% p.a. across all six KiwiSaver funds. 100% owned by the Simplicity Foundation, a registered charity. Over 190,000 members. Seven rounds of fee cuts since launch in 2016. Fifteen percent of management fees donated to NZ charities. Founded by Sam Stubbs (ex-Tower Investments CEO, Goldman Sachs).

The Quick Summary (60-Second Version)

If you only read one part of this page, read this.

• Switching is free, and you can do it whenever you like. Apply to the new provider, and they handle the transfer from the old one.
• Your employer continues to contribute 3.5 per cent of your gross pay, regardless of which provider or fund you choose.
• The fund type matters more than the brand. Two people at the same provider can get very different outcomes.
• Fees compound against you. Simplicity KiwiSaver Scheme charges the same 0.24 per cent a year on every open fund. Generate KiwiSaver Scheme charges between 0.43 per cent and 1.27 per cent across its open funds.
• Never switch to a conservative fund straight after a market fall. That turns a paper loss into a real one.
• If you are close to buying a first home, a balanced default fund can be a good option just before you need the money.

When Switching Actually Makes Sense

Most switches we see are driven by a fee that has crept up, a fund that no longer matches the timeframe, or a life change. Those are good reasons. Chasing last year's top performer is not.

Start with the fund, not the provider. Our database holds fund-level data across the KiwiSaver market, and most providers run several distinct funds under a single brand. A conservative fund at one provider can hold a completely different mix from a conservative fund at another, so check the product disclosure statement rather than trusting the label.

The fee question

Fees are deducted from your balance every year, on the whole balance, so they compound against you the same way returns compound for you. A fee that is one percentage point higher costs about $500 a year on a $50,000 balance, and it grows as the balance grows.

But a cheap fund in the wrong category is not a savings. A low-fee conservative fund held for 30 years will likely trail a moderately priced growth fund over that horizon, because the asset mix drives more of the outcome than the fee does.

What the fund categories mean

Those returns are planning assumptions after fees and tax, not promises. Growth assets are shares and property, which move around more than cash and bonds. Higher long-term returns come with sharper falls along the way.

How to Switch, Step by Step

The mechanics are simpler than most people expect. You do not need to contact your old provider, and there is no tax charge, because the money never leaves KiwiSaver.

Before you apply

Check two things. First, whether the fund you are leaving has a withdrawal fee or any other exit cost. Second, whether markets have fallen recently — if they have, switching crystallises the loss instead of giving it time to recover.

Compare on fund type and risk indicator, fees, the range of funds offered, and service. The FMA is blunt that some providers charge more than others, and that a low fee on a fund that does not suit you is not a saving.

The transfer itself

Apply to the new provider. They arrange everything with your existing one. In practice, the transfer usually completes within a few weeks, and your money stays invested throughout. Your employer continues to contribute regardless of which provider or fund you choose, so payroll does not need to change anything.

If you are unsure, use the partial option. Leave your existing savings where they are and direct only new contributions to the new fund. It is a low-risk way to test whether the new fund suits you.

What the Numbers Look Like in Practice

We track live fund data so we can show what the fee-to-return spread actually looks like, rather than describing it in the abstract.

All six open funds charge the same 0.24 per cent a year, so the fund you choose does not change what you pay. On entry cost, Simplicity KiwiSaver Scheme is the 5th cheapest of the 29 managers in our KiwiSaver table, with its cheapest fund charging 0.24 per cent. The cheapest manager charges 0.03 per cent and the dearest starts at 4.26 per cent. The strongest five-year figure is the Growth Fund at 6.01 per cent a year, and the weakest is the Conservative Fund at 1.80 per cent a year. It is a default provider.

Generate KiwiSaver runs 21 KiwiSaver funds open to new members, covering a wide spread of risk levels. At 30 June 2026 they held $10.26 billion for 235,227 investors. The funds run from risk level 1 to 5, so which fund you pick matters more than which scheme you are in. Charges across the open funds run from 0.43 per cent to 1.27 per cent. Its point of difference is age-banded Stepping Stones options that shift the mix as you age without you choosing a new fund.

Milford KiwiSaver runs 6 KiwiSaver funds open to new members, covering a wide spread of risk levels. At 30 June 2026 they held $15.88 billion for 223,003 investors. The funds run from risk level 1 to 5, so which fund you pick matters more than which scheme you are in. Within the Milford KiwiSaver Plan, charges run from 0.20 per cent to 1.15 per cent. The strongest five-year figure is the Milford KiwiSaver Active Growth Fund at 6.82 per cent a year, and the weakest is the Milford KiwiSaver Cash Fund at 2.55 per cent a year. Neither Generate nor Milford is a default provider.

One caution about return tables. The top five-year performers sit at the concentrated end of the market, with risk indicators of 5 or 6. A diversified growth fund and a concentrated single-market fund are different products with different risk profiles. The higher return is not free.

Questions You Might Have

Does switching affect my employer's contribution?

No. Your employer contributes 3.5 per cent of your gross salary or wages from 1 April 2026 regardless of which provider or fund you are in. Switching changes where your money is invested, not what goes in. If you are on a temporary rate reduction, the employer contribution rules change; check those separately.

Can I hold more than one fund at once?

Yes. You can invest in more than one type of fund at the same time, and you can change your fund at any time. That is different from holding two providers, which is possible but creates admin for no real benefit. Most people are better off with one provider and a fund mix that suits them.

Will switching cost me the government contribution?

No. The government contributes 25 cents for every dollar you put in each year, up to $260.72, and switching does not affect it. To get the full amount you need to contribute at least $1,042.86 of your own money between 1 July and 30 June. Employer contributions do not count towards that threshold.

What happens if I switch right after a market fall?

You lock in the loss. Your balance is transferred as cash, so a fall that would have recovered over the following months becomes permanent. If markets have dropped recently, waiting is usually the better move. The same logic applies to moving from growth to a conservative near-retirement strategy.

Can I switch if I'm self-employed?

Yes, and you can choose any scheme and any fund. You will not get an employer contribution, because there is no employer — that is the biggest difference. You still qualify for the government contribution if your taxable income is $180,000 or less, so contributing at least $1,042.86 each year is usually the first decision to get right.

What Matters Most

The decision that moves the needle is which fund type you are in, not which brand is on the statement. Two people with identical balances at the same provider can end up in very different places simply because one chose a conservative approach and the other chose a growth approach.

Get the fund right first, then worry about the fee, then worry about the provider. A cheap fund in the wrong category for your timeframe is not a saving — it is a mismatch you will pay for over decades.