Jump in KiwiSaver switches: Should you move to a new provider?
KiwiSaver members in New Zealand are switching investment providers at record rates as interest in financial planning grows. Experts suggest that strong market performance and increased access to financial advice are driving this trend toward more aggressive fund options.
Why it matters
Increased engagement with retirement savings reflects a broader shift in consumer financial literacy and the impact of digital investment platforms.
KiwiSaver members are switching providers in increasing numbers, but how can you know whether it's the right thing to do?
There were 21,757 transfers between KiwiSaver providers in June, up from 17,556 in May and 14,089 in April.
A year earlier, 13,866 people transferred.
Providers said it was probably because people were taking a more active interest in their investments, and new options have become available in the market.
Sharesies, for example, has added more than 30,000 members since it launched.
Strong sharemarkets have also meant many funds have delivered strong returns.
Pie Funds chief executive Ana-Marie Lockyer said there was more engagement with KiwiSaver generally, which seemed to be contributing to an increase in switches as people thought about whether they were in the right fund for their goals.
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