If you were enrolled in KiwiSaver and didn’t choose a provider, you were allocated to a default provider and placed in its default fund, or to your employer’s chosen scheme if they have one. This page covers who the six KiwiSaver default providers are, how default allocation works, what changed in December 2021, and the options open to you if you’re in a default fund. Individual schemes are covered in our KiwiSaver provider reviews.
What Is a KiwiSaver Default Fund?
When you start a new job in New Zealand, your employer automatically enrols you in KiwiSaver if you’re eligible, aged 18 to 65 and not already a member (some job types, such as short contracts, are excluded). If you don’t choose a provider, IRD allocates you to one of the government-appointed default providers, in its default fund, or to your employer’s chosen scheme if they have one.
The default fund means you’re enrolled in something rather than nothing. It’s set by the government’s default rules, not chosen for your own age, goals or balance.
The Six Default KiwiSaver Providers (2021 to 2028)
Effective 1 December 2021, the government reduced the default provider panel from nine to six. The six appointed providers are:
| Provider | Default fund type |
|---|---|
| BNZ | BNZ KiwiSaver Default Fund (0.35% a year; target 60% growth assets, separate from BNZ’s Balanced Fund) |
| Booster | Balanced |
| BT Funds Management (Westpac) | Balanced |
| Kiwi Wealth (became part of Fisher Funds in late 2022, the sale completing on 1 December 2022; the scheme is now the Fisher Funds KiwiSaver Plan) | Fisher Funds KiwiSaver Plan Default Fund (0.37% a year) |
| Simplicity | Balanced |
| Smartshares Limited (brand name Smart; an NZX subsidiary), manager of SuperLife | Balanced |
ANZ, ASB, AMP, Fisher Funds (in its own right, prior to the Kiwi Wealth acquisition) and Mercer were not reappointed in the 2021 review, even though several had been default providers before 2021. They remain regular KiwiSaver providers open to members who actively choose them. Milford and Generate are not default providers.
All six default funds must be balanced funds under the 2021 default fund rules, a change from the pre-2021 defaults, which were conservative. The current appointments run to 1 December 2028.
What Changed in 2021?
Before December 2021, default KiwiSaver funds were conservative: mostly bonds and cash. A conservative fund suits short time horizons; over 30 to 40 years it is expected to grow less than funds holding more shares.
The government changed the rules: all new default allocations must be to balanced funds (roughly a mix of growth and income assets). Members already in the old conservative defaults who hadn’t made an active choice were moved to balanced as part of the transition.
Why this matters: a member who spent 2007 to 2021 in a conservative default held mostly bonds and cash, so over that period their balance is likely to have grown less than it would have in a fund with more shares. The 2021 change applies from then on.
Are You in a Default Fund?
You might be in a default fund if:
- You started a new job and didn’t choose a provider
- You were auto-enrolled and made no KiwiSaver decisions
- You can’t remember choosing a fund or provider
How to check:
- Log in to myIR at ird.govt.nz, which shows your KiwiSaver provider
- Ask that provider, or check your latest statement, for which fund you’re in
Default allocations also come with a letter or email from the provider, so your inbox may have it.
How a Balanced Default Compares
A balanced default sits between conservative and growth funds:
- Compared with growth or aggressive funds: it holds fewer shares, so it usually falls less in a downturn and grows less over long periods
- Compared with conservative funds: it holds more shares, so it usually moves more in value and is expected to grow more over long periods
- Fees: default funds don’t all charge the same fee; Sorted Smart Investor and the fund fees comparison show them side by side
Which mix fits depends on your time horizon and how you’d react to falls; conservative vs balanced vs growth by age sets out the differences.
Your Options If You’re in a Default Fund
- Stay where you are. Nothing happens unless you act; contributions keep going into the default fund.
- Change fund with the same provider. Every default provider also offers other funds (for example, growth or conservative). See how to change KiwiSaver fund.
- Switch to a different provider. You apply to the new provider, which arranges the transfer; IRD says it takes about 2 weeks, and your old provider may charge a transfer fee. See how to switch KiwiSaver provider.
- Compare first. KiwiSaver providers compared, the fund fees comparison and Sorted Smart Investor set out fees, fund types and returns.
Whichever you pick, for advice on your own situation talk to a licensed financial adviser.
Default Funds and the Government Contribution
Being in a default fund has no effect on your government contribution. If you’re eligible and contribute at least $1,042.86 in the year, you receive the full $260.72, whichever provider or fund you’re in. Who is eligible is in the government contribution guide.