Defensive Income-Focused KiwiSaver Funds
63 ultra-conservative KiwiSaver funds with 80%+ income assets. Lowest risk option for imminent withdrawals - first home buyers purchasing within 12 months or retirees within 1 year.
⏰Timing is Critical
Defensive funds are ONLY for money needed in 6-12 months
- • Too early? If you need money in 2+ years, use Conservative funds for better returns
- • First home: Switch when actively house hunting or have conditional offer
- • Retirement: Switch 6-12 months before your planned date
- • Trade-off: Extreme stability = lowest returns (1-4% vs 5-8% for Balanced)
When to Use Defensive Income Funds
✓ Perfect For:
- • First home purchase in next 6-12 months
- • Retiring within 1 year (age 64-65)
- • Moving overseas soon (permanent emigration)
- • Extreme risk aversion (can't handle any volatility)
- • Need absolute certainty for imminent withdrawal
✗ DON'T Use If:
- • You need money in 2+ years (use Conservative instead)
- • You're under 60 with years to retirement
- • You want growth (returns are 1-4%, very low)
- • You have 5+ years until retirement
- • You're building long-term wealth
Return Trade-offs Over Time
While defensive funds protect your capital short-term, they sacrifice significant returns long-term:
Only use defensive funds when you need money in under 12 months. Otherwise, you're sacrificing $20-30k+ over a decade.
All Defensive Income Funds Ranked
Other Low-Risk Options
Compare All Conservative Funds
Find the right balance of safety and returns for your timeline
Compare All FundsData source: FMA KiwiSaver Quarterly Reports. Last updated: October 2025.
Disclaimer: Defensive funds are lowest risk but not risk-free. Past performance does not guarantee future results. This is not financial advice. Consult a licensed financial adviser.