Thinking of changing KiwiSaver schemes?

There are several reasons why you may want to change KiwiSaver schemes or providers.

• Your risk profile may have changed since you first joined, or you may have more knowledge now about what type of investment fund is right for you.
• You may be unhappy with your fund’s returns to date. (But remember that you need to judge performance over the long-term, one year’s result is not a true indication – especially in the current market. You also need to compare your returns with other similar funds – you may find they have performed just as poorly.)
• You may want a scheme with lower fees. (However, fees are just one factor to consider when selecting a KiwiSaver product or provider. Funds with higher fees may have the potential for higher returns. The level of service and communication offered by the fund provider should also be considered. Funds with higher fees that have the potential for higher returns may also have a greater level of risk.)
• You may want a scheme that offers mortgage diversion or another benefit.

The good news is that you can change KiwiSaver schemes at any time by contacting a scheme provider directly. Note that you can only belong to one KiwiSaver scheme at a time, and you may be charged a transfer fee by your old scheme provider.

You can also change funds within your current provider, e.g. from a low to a higher risk fund. You’ll find details on how to do this (and any fees or conditions) in your scheme’s investment statement.

Whatever your reason for change, use this checklist to help you make an informed decision:

KiwiSaver scheme checklist

1. The type of investment
   Are you comfortable with the providers’ investment approach (where your savings will be invested and the level of risk)? Do the funds offered fit your risk profile? Check our Risk Recommender or the scheme’s investment statement - many have a questionnaire to help you assess your risk profile.
2. Flexibility
   Can you easily change funds e.g. from a low risk fund to a growth fund or vice-versa. Is there a charge for this? Can you make additional payments (regularly or by lump sum) direct to the provider – is there a minimum dollar amount?
3. Who is involved?
   Do you know of the organisations named as managers and/or investment managers and have confidence in them?
4. What information will you receive?
   How often will you receive reports about your savings balance (e.g. annually or six-monthly)? Can you also work out the value of your savings through a website or published unit prices?
5. What returns do you expect to get?
   
   • Compare returns achieved to date – but remember, for all except very low risk products, past returns are poor indicators of future returns.
   • Consider how comfortable you are about any information and comment relating to future returns.
   • Make sure that you are comparing like with like, e.g. are returns quoted after tax and annual fees, after allowing for entry and exit fees etc.
   • Ask for information about how the fund has performed relative to similar funds.
      - For active growth funds long-term average returns are more important than short-term returns.
      - For passive (or index-linked) funds the returns are determined by market conditions not the investment skills of the manager. So the test is how closely have the funds tracked the market they invest in.
6. Fees and charges
   Do you know all the fees you will be charged? Over the term of the investment, how do they rate with other similar schemes? Check our KiwiSaver fees calculator.
7. Ethical investment
   If it’s important to you, are ethical/socially responsible investment options available or is ethical investment taken into account by the provider in their investment approach? 
8. Extras/benefits
   Does your provider offer mortgage diversion or other benefits like insurance at favourable premium rates?

This checklist is based on our general investment comparison checklist.

For more help in finding the right KiwiSaver scheme for you, get advice from a qualified financial adviser.

How do I get information about KiwiSaver schemes?

There’s a full list of providers and links to their websites on the Inland Revenue KiwiSaver website.

You can also get an estimate of the total fees each scheme charges on our KiwiSaver fees calculator.

Every scheme provider has an investment statement, which can be sent to you or downloaded from the provider’s website.