What are default KiwiSaver funds in New Zealand?
Many New Zealanders are in a KiwiSaver fund they never actively chose. A default fund is one the Government assigns when someone joins KiwiSaver without choosing a provider or fund. If you joined through a new job, were automatically enrolled, or signed up without selecting a provider, you may be in one - and it may not be the right one for your goals.
What is a default KiwiSaver fund?
A default fund is one the New Zealand Government assigns when someone joins KiwiSaver without choosing a provider or investment fund. This most commonly happens when you are automatically enrolled through a new job, start contributing without actively selecting a provider, or your employer does not have a preferred KiwiSaver scheme.
Why do default funds exist?
Default funds ensure every eligible New Zealander can start investing for retirement, even without full KiwiSaver knowledge. They provide a simple entry point, offer diversified investments, and avoid excessively high-risk strategies for new members. They are a practical starting point - not necessarily a permanent long-term solution.
What investments do they hold?
Historically, default funds were conservative - with large cash and bond allocations that limited long-term growth for younger investors. In 2021 the Government shifted default settings to balanced funds, better reflecting the long-term nature of retirement investing. Each provider still maintains its own strategy, fee structure, and risk approach within this framework.
Are default funds bad?
Not necessarily. Default funds are professionally managed and diversified. The key question is whether the fund matches your age, goals, investment timeframe, and risk tolerance. A younger investor with decades until retirement may benefit from a higher-growth fund. Someone buying their first home soon may need lower volatility. A person approaching retirement may want more stability.
The risk of staying too long
The most common mistake is remaining in the same default fund for years without reviewing whether it still suits you. Many people never compare providers, never review fees, and stay simply because of where they were originally placed. Over time, even small differences in fees, strategy, and returns can significantly impact how much you end up with.
How to check and switch your KiwiSaver fund
How do I know if I am in a default fund?
Log in to your KiwiSaver account online, review your annual statement, or contact your provider and ask what fund type you are in. If you did not actively choose your provider when you enrolled, there is a good chance you are in a default or conservative fund. A KiwiSaver adviser can identify your current provider, fund type, and whether the strategy suits your goals - Cam does this in your first free session.
Can I switch out of a default fund?
Yes - you can switch KiwiSaver providers or funds at any time. There are no tax penalties or exit fees for switching in New Zealand. Any switch should be based on your goals, investment timeframe, and comfort with risk - not on short-term market movements. Switching purely because markets rose or fell can lead to poor long-term outcomes. Cam helps you make that call based on your specific situation.
Many people are surprised how much the right KiwiSaver setup can make over time
If you are in a default fund now, this is the right time to review it. Even small improvements made early can compound into meaningful differences later.
Review your current fund
Cam looks at what fund you are currently in, what it has returned, and whether it actually matches your situation - your age, income, goals, and how long until you need the money.
Compare providers
Cam compares providers across the market on performance, fees, and fund types, and recommends the one that gives you the best long-term outcome. No bias toward any one provider.
Explain your options in plain English
Cam explains risk in straightforward terms - no jargon. He covers withdrawal rules, helps you avoid common mistakes, and creates a strategy that actually fits your goals and situation. Avoid the 5 most common KiwiSaver mistakes.
Handle the switch for you
Cam takes care of the paperwork. Your balance transfers across automatically - you do not need to contact your old provider or manage the transfer yourself. Completely free.
Getting into the right fund is simpler than you think
Book a free 30-minute session
Cam reviews what fund you are currently in, what it has returned, and whether it actually matches your situation - your age, income, goals, and how long until you need the money.
Find a better match
Cam compares providers across the market - performance, fees, and fund types - and recommends the one that gives you the best long-term outcome. No bias, no commissions that favour one provider over another.
Switch in a few weeks
Cam handles the switch for you. Your balance transfers across automatically - you do not need to contact your old provider or manage the transfer yourself.
Trusted by Kiwis like you
"I had been with KiwiSaver for years and left it to run itself with low returns. After meeting with Cameron I realised the error I had made in assuming all providers were the same. I can now rest easy knowing my KiwiSaver is in good hands and getting good returns."
"I highly recommend speaking with Cam, especially if you're a novice when it comes to investing and KiwiSaver. He's guided me every step of the way, always explaining things clearly and making me feel confident in my decisions. Couldn't recommend him more highly!"
"Cam has been fundamental to myself and my partner not only understanding our KiwiSaver but helping it grow to more than we could ever imagine. Highly recommended."
Default KiwiSaver funds, answered
What is a default KiwiSaver fund?
A default KiwiSaver fund is a fund assigned by the New Zealand Government when someone joins KiwiSaver without choosing a provider or investment fund themselves. The Government appoints a small number of approved providers to offer these defaults, which may change over time following Government reviews and tender processes.
Are default KiwiSaver funds conservative?
Historically yes - default funds used to hold large allocations of cash and bonds, limiting long-term growth for younger investors. Since 2021, default KiwiSaver funds are required to be balanced funds, which better reflects the long-term retirement investing nature of KiwiSaver. However, balanced may still not be right for your specific situation and goals.
Can I change my default KiwiSaver fund?
Yes. You can switch KiwiSaver providers or funds at any time, and there is no cost to do so. There are no tax penalties or exit fees. Any change should be based on your goals, investment timeframe, and comfort with risk - not on short-term market movements.
Are default KiwiSaver funds good for retirement?
They may suit some people, but they are designed as general starting points rather than personalised investment strategies. Whether a default fund is right for your retirement depends on your age, goals, risk tolerance, and timeline. Cam reviews this with you for free - it takes about 30 minutes and can make a significant difference over time.
How do I know if I am still in a default fund?
Check your annual KiwiSaver statement, log in to your provider's app, or contact your provider and ask what fund type you are in. If you did not actively choose your provider when you enrolled, there is a good chance you are still in a default or conservative fund. Cam can confirm this for you in your free session.
Does switching KiwiSaver providers cost anything?
No. Switching providers is completely free. There are no exit fees, and your balance transfers across automatically. Cam's advice is also free - he is paid by the provider, not by you.
What is the difference between a conservative, balanced, and growth fund?
These fund types reflect different levels of investment risk and potential return. A conservative fund holds mostly cash and bonds, lower risk, steadier but slower growth, and suited to those close to retirement or withdrawing soon. A balanced fund mixes growth and income assets for a middle-ground approach. A growth fund invests heavily in shares, meaning higher potential returns over the long term but more short-term ups and downs. The right choice depends on your timeline, goals, and comfort with market fluctuations, and that's a conversation worth having with Cam.
When should I review my KiwiSaver fund?
At a minimum, an annual check-in is wise, and that's exactly what Cam offers as part of his ongoing service. Beyond that, certain life events are natural triggers to reassess: a significant salary change, a shift in your retirement timeline, approaching the purchase of your first home, or major market changes that affect fund performance. As you get closer to retirement or a home purchase, shifting to a more conservative fund to protect your balance becomes increasingly important. Cam's annual check-ins are designed to catch these moments before they cost you.
Reviewed by Cameron Steele, Financial Adviser (FSP1010212) - updated July 2026.