How to Switch KiwiSaver Funds | Complete Transfer Guide
Switching KiwiSaver providers is free, simple, and takes about 10-15 days. Whether you're chasing better returns, lower fees, or ethical investing options, this comprehensive guide walks you through when to switch, how the process works, what to watch for, and how to compare providers before making your move.
When Should You Switch?
Good Reasons to Switch
1. High Fees
If your provider charges 1%+ and you can find similar performance for 0.3-0.6%, switching could save tens of thousands over your lifetime. Even 0.5% difference matters significantly.
2. Poor Performance
If your fund consistently underperforms its peers over 3-5+ years, it may be time to switch. Compare your returns against similar fund types from other providers.
3. Default Fund Mismatch
If you were auto-enrolled into a conservative default fund but you're young, switching to a growth fund with a better provider maximizes your long-term returns.
4. Better Options Available
New providers with lower fees, better technology, or ethical investing options that align with your values have emerged since you joined.
5. Poor Service or Technology
If your provider has terrible customer service, no mobile app, or difficult account management, better options exist.
Bad Reasons to Switch
✗ Short-term Underperformance
One bad year doesn't mean your fund is terrible. Market cycles affect all funds. Look at 5-10 year trends, not annual fluctuations.
✗ Chasing Last Year's Winner
The top performer one year often isn't the top performer the next. Past performance doesn't guarantee future results.
✗ Panic Switching After Market Drop
Selling during a downturn locks in losses. Markets recover. Stay the course unless you need money within 5 years.
✗ Frequent Switching
Switching every few months based on performance creates instability. Review annually, switch thoughtfully when justified.
The Switching Process: Step-by-Step
Complete Step-by-Step Guide
Research and Compare
Compare providers using our comparison tool. Look at fees, returns, fund types, and service quality.
→ Use our comparison toolGather Information
You'll need: IRD number, current KiwiSaver provider name, current balance (from latest statement), chosen fund type with new provider.
Apply with New Provider
Complete online application (10-15 minutes). Most providers have simple digital forms. You'll need ID verification (driver license or passport).
New Provider Handles Transfer
Your new provider contacts your old provider and arranges the transfer. You don't need to do anything else.
Wait for Transfer (10-15 days)
Your funds are sold from the old provider, transferred, and bought into the new provider's fund. You'll receive confirmation emails at each stage.
Confirm Transfer Complete
Check your new provider's portal to confirm your balance has transferred. Notify your employer of the new provider details so future contributions go to the right place.
Update Payroll (If Employed)
Give your employer the new provider's details so they contribute to the correct scheme going forward.
Important Notes:
- • Switching is completely free—no penalties or transfer fees
- • You can only have one active KiwiSaver at a time
- • Your contributions continue during the transfer
- • All your money transfers—nothing is left behind
- • Government contributions follow your account automatically
What to Watch For When Switching
Exit Fees
Most providers don't charge exit fees, but check your current provider's PDS to be sure. If there's a fee, factor it into your decision.
Market Timing Risk
Your funds are sold at market price when transferred. If the market drops during the 10-15 day transfer period, you might sell low and buy high. This risk is generally small compared to long-term gains from lower fees.
Buy/Sell Spreads
Some funds charge a small spread (typically 0.1-0.3%) when you exit or enter. Check both your old and new provider's spreads.
Timing Your Transfer
Ideally switch shortly after quarter-end when you've received any performance bonuses or distributions. Avoid switching right before the government MTC payment in July if possible.
Employer Notification
Don't forget to update your employer. If they keep contributing to your old provider after you've switched, it creates complications and delays in consolidating your accounts.
How to Compare Before Switching
Comparison Checklist
Switching FAQs
How long does switching take?
Typically 10-15 business days from application to funds appearing in your new account. Some transfers complete faster (7 days), while others may take up to 3 weeks.
Can I switch if I'm on a contributions holiday?
Yes. Switching and contributions holidays are independent. Your funds transfer regardless of whether you're actively contributing.
What happens to my employer contributions during the switch?
Your employer continues contributing to your old provider until you notify them of the change. Once you provide new provider details, future contributions go to the new scheme. Any contributions to the old provider after switching will be consolidated.
How many times can I switch?
There's no limit to how many times you can switch providers. However, frequent switching (more than once a year) is generally not advisable due to market timing risks and administrative hassle.
Will I lose my government contributions if I switch?
No. Your Member Tax Credit (government contribution) is tied to your IRD number, not your provider. It will automatically follow you to your new provider.
Ready to Switch to a Better KiwiSaver Provider?
Compare all providers to find lower fees and better returns. Start saving thousands for your retirement today.