What is Default Fund?
A default fund is the KiwiSaver fund you are automatically placed in if you do not actively choose a fund when joining.
Detailed Explanation
When you are auto-enrolled in KiwiSaver and do not choose a provider, you are placed in a default fund. Since December 2021, new default funds are balanced funds rather than conservative.
Example
A 25-year-old auto-enrolled in a conservative default fund may miss decades of potential growth. Switching to a growth fund could significantly increase their retirement balance.
Frequently Asked Questions
How do I know if I am in a default fund?
Check your KiwiSaver statement or contact your provider.
Should I switch from a default fund?
Consider whether the fund type matches your age, risk tolerance, and goals.