Changing your KiwiSaver fund type means moving your balance (and usually your future contributions) to a different fund with the same provider, for example from balanced to growth or from growth to conservative. This page covers how a switch works, how long it takes, what it costs and what happens to your money in the meantime.
How Much Fund Type Can Matter
Fund types differ in long-run return as well as short-term risk, and the difference compounds. A $50,000 balance left for 25 years with no further contributions, at three assumed annual returns:
| Assumed return | $50,000 after 25 years |
|---|---|
| ~3% (conservative-like) | ~$104,000 |
| ~5% (balanced-like) | ~$169,000 |
| ~7% (growth-like) | ~$271,000 |
Illustrative only: fixed assumed returns, before fees and tax. Real returns vary from year to year, and higher-growth funds have also had larger falls along the way.
For the full breakdown of each fund type, see KiwiSaver fund types explained.
Why People Change Fund Type
Common reasons people move to a higher-growth fund:
- They are in a conservative or balanced fund with many years until they expect to withdraw
- They were enrolled automatically and never chose a fund
- They moved to a lower-risk fund before a first home purchase and the purchase is done, so the remaining balance is retirement savings again
Common reasons people move to a lower-risk fund:
- A first home purchase is a few years away
- Retirement (65) is getting closer and they want to reduce sequence-of-returns risk (see KiwiSaver drawdown in retirement)
- Their circumstances or attitude to risk have changed
Switching in response to market moves
Switching to a lower-risk fund after a fall sells growth assets at the lower price, and the balance then misses any recovery; switching after a strong rise is a bet that it will continue. KiwiSaver during a recession covers what happens to your balance in a downturn.
For how the fund types differ, see KiwiSaver fund types explained; for how the risk changes with the years until withdrawal, see risk by time horizon.
How to Change Your Fund Type (Step by Step)
Option A: Switch within your current provider (most common)
This is faster and simpler than switching providers. Most providers allow this online.
- Log in to your KiwiSaver provider’s online portal or app
- Find the fund switch option — usually under “My Account”, “Investments”, or “Settings”
- Choose your new fund type — growth, balanced, conservative, etc.
- Confirm the switch — no fee, no paperwork required
- Timeline: 1–5 business days for the switch to take effect
Most providers allow fund switches online 24/7. Some may require a phone call or written request for certain fund changes.
Option B: Switch provider and fund type at the same time
If you also want a different provider, you apply with the new provider and choose a fund as part of the application; the new provider arranges the transfer, which IRD says takes about 2 weeks. The switching KiwiSaver providers guide covers that process, fees and timing.
How Long Does a Fund Switch Take?
| Action | Timeframe |
|---|---|
| Switching fund within same provider | 1–5 business days |
| Switching provider (new provider handles transfer) | About 2 weeks (IRD) |
During a provider transfer, your balance is out of the market. This is a minor consideration for long-term investors but worth knowing — avoid switching providers the week before a known market-moving event if you’re concerned about timing.
Does It Cost Anything to Switch?
Changing provider can cost a transfer fee, because your old provider may charge one.
Your old provider decides whether to charge a transfer fee, so check with them before you switch.
You do not lose government contributions or employer contributions by switching.
Things to Know Before Switching
- Switching after a fall sells growth assets at the lower price and the balance misses any recovery. KiwiSaver during a recession covers this in more detail.
- Switching to a higher-growth fund shortly before a withdrawal exposes more of the balance to a fall with little time to recover (sequence-of-returns risk).
- Switching often, or switching provider based on one year’s performance table, means acting on short-term results that often don’t repeat.
What Happens to Your Balance During a Switch?
Within the same provider
Your units in the old fund are sold and units in the new fund are purchased. The switch typically takes 1–5 business days. There’s a brief period where your money is held in cash between the two fund purchases.
Switching providers
Your balance is transferred as cash from your old provider to your new provider, who invests it in your chosen fund. During the transfer period (about 2 weeks), your money is not invested and will not earn market returns or losses.
Frequently Asked Questions
Can I split my KiwiSaver between multiple fund types? Some providers allow you to split your balance across multiple funds (e.g. 50% growth, 50% balanced). This varies by provider, so check with yours.
Will switching fund type affect my government contribution? No. The government contribution is based on how much you contribute, not which fund type you’re in. Switching funds has no effect on government contribution eligibility.
How do I know what fund type I’m currently in? Log in to your provider’s online portal — your current fund type should be displayed on your dashboard. Alternatively, check your most recent annual statement or call your provider.
Can I switch fund type before making a first home withdrawal? Yes. A fall in the period just before a purchase reduces the deposit available, which is why some members move to a lower-risk fund as a purchase gets closer. See KiwiSaver as a house deposit.
Is there a limit on how many times I can switch? No — you can switch fund types as often as you like. However, frequent switching (especially in response to market movements) is generally counterproductive.