KiwiSaver default funds are a low-cost balanced fund option that anyone can join.
People who do not choose a KiwiSaver fund when they start work and are not already a KiwiSaver member are automatically enrolled in a ‘default fund’. The Government chooses the providers of default funds.
You can also choose to join a default fund at any time. Default funds are available in the following KiwiSaver schemes:
Default funds have the following features:
KiwiSaver default members (members who have not made an active choice to be in a default fund) will be transitioning to these new settings from 1 December 2021.
Your KiwiSaver provider and the Inland Revenue Department (IRD) are managing this change under rules set out by the Ministry of Business Innovation and Employment (MBIE). To find out more about the transition read the fact sheet available on the MBIE website.
Since many New Zealanders will join a default fund automatically, the Government requires default KiwiSaver providers to contact members at key points to help with important decisions. You will also receive this contact if you’ve actively chosen to be in a default fund.
You should expect advice on:
You should also expect your KiwiSaver provider to contact you with helpful information at the following times:
The FMA monitors that default providers are meeting these requirements.