Appointment of KiwiSaver default providers
On Friday 14 May 2021, the Minister of Finance and the Minister of Commerce and Consumer Affairs announced the six KiwiSaver providers who will offer default fund services from 1 December 2021.
Changes in the default providers
The new providers are:
- BT Funds (Westpac)
- Kiwi Wealth
- Smartshares (NZX).
These providers were appointed following a competitive tender process. The applicants were assessed against a set of criteria which included fees, their ability to deliver the investment product, manage transitional arrangements, provide a good customer experience for their members, and the provider’s organisational structure and standing.
Changes to the fund settings
The new default funds that commence on 1 December 2021 will have different settings from current funds, including the following:
- the investment fund type has moved from conservative to balanced
- KiwiSaver fees will reduce, and be simpler and more transparent
- default providers will be required to engage with their members to help them make informed decisions about their retirement savings at key points
- investment in fossil fuels and illegal weapons will be excluded from default funds
- default providers will be required to maintain a responsible investment policy on their websites.
What will the changes mean for default fund members?
All default KiwiSaver members (members in a default fund who have not yet made an active choice to remain there) will be transferred to one of the appointed default provider’s KiwiSaver funds.
The transfer of default members is happening to ensure default members continue to receive the protections and benefits of being in a default fund (such as low fees and minimum service standards). These KiwiSaver members will not need to take any action for this to happen.
For more information about KiwiSaver, and for help choosing a fund that is right for you, use the Sorted fund finder tool:
Briefing seeking formal agreement to the proposals for the settings for KiwiSaver default funds.
PDF, 581KB, 8 pages
Briefing providing an update on the proposed procurement process for selecting new KiwiSaver default providers and advises on the outstanding policy issues including the new fossil fuel production exclusions.
PDF, 623KB, 14 pages
Briefing seeking Ministers’ agreement to a definition for excluding investment in fossil fuel production from KiwiSaver default funds and other matters, prior to the release of a request for proposals.
PDF, 908KB, 11 pages
To see Ministers’ agreement to a revised evaluation approach for the upcoming KiwiSaver default provider procurement process.
PDF, 266KB, 8 pages
Discussion document for the KiwiSaver default provider review.
PDF, 588KB, 50 pages
Information for KiwiSaver members: The Government has recently announced new providers of KiwiSaver default funds, to enhance the financial wellbeing of default KiwiSaver members in retirement.
PDF, 53KB, 1 page