performing funds as KiwiSaver switching increases
Financial experts are warning KiwiSaver members against frequently switching funds based solely on past performance. Instead, they recommend focusing on long-term goals, diversification, and fee structures to ensure retirement security.
Why it matters
This advice addresses common retail investor pitfalls and the importance of financial literacy in retirement planning.
KiwiSaver members are being warned against chasing the best-performing fund or provider as growing numbers shift their retirement savings elsewhere.
Inland Revenue (IRD) data shows 21,757 KiwiSaver members transferred to another provider in June 2026, up from 13,866 in June 2025. While that remains a small proportion of KiwiSaver’s more than three million members, it represents a significant year-on-year jump.
Russell Hutchinson, founder of KiwiMonster – which provides KiwiSaver research to financial advisers – said greater engagement with KiwiSaver was positive, but cautioned against assuming the provider at the top of the performance tables would remain there.
Speaking on The Prosperity Project podcast, Hutchinson says, “Just picking last year’s winner ... probably isn’t a good idea.”
He also warns against picking last year’s loser and betting on a bounce back.
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