Guide to changing KiwiSaver providers

Changing KiwiSaver providers is easy and only takes a minute or two. But there are a few things you may want to know before you ‘break up’ with your current one.

3 minute read

There’s a lot of confusion around changing KiwiSaver providers. Some people assume you need to have an awkward ‘break-up’ conversation with your current provider. Or that you need to involve Inland Revenue. Or that you might lose some of your money when you change. So, let’s clear all that up – and see what’s really involved in making the change.

The rules around changing

The rules say you can only be with one KiwiSaver provider at a time. But you can change KiwiSaver providers whenever you want. And the provider you change to does all the work for you, to make sure it goes smoothly.

Three things to think about before you change

1. Fees

It’s good to know what your new provider’s fees are before you change. Things like their management fees, whether there are member fees, and (for some providers) details of their performance fees. See how they compare with what your current provider charges. There’s no member fee for the BNZ KiwiSaver Scheme, only a low management fee based on a percentage of your current balance. Check the BNZ KiwiSaver Scheme fees.

2. Track record

Besides being happy with your new provider’s fee structure, it’s important to know you’re moving your KiwiSaver account to a provider with a solid history of investment outcomes. Try to find out how their funds have performed since they began and how they held up during times of market stress. It’s important to know how well they’re set up to handle the ups and downs that come with investing. Keep in mind, past performance does not guarantee future results. It also pays to check what the online reviews and consumer watchdogs have to say about them too. 

3. Approach to investing

If there are some areas where you’d rather your KiwiSaver money didn’t get invested, like tobacco, commercial whaling or civilian arms manufacturing, then check your new provider’s approach to investing. Learn about responsible investment for the BNZ KiwiSaver Scheme.

Changing is easier than you think

The truth is, ‘breaking up’ with your current KiwiSaver provider and moving to a new provider is a lot easier than you might think. For example, if you’re an existing BNZ customer, the fastest and easiest way to join or transfer to the BNZ KiwiSaver Scheme is to log in to your Internet Banking, select ‘Apply Now’, then choose ‘BNZ KiwiSaver Scheme’. It takes two minutes, and we take care of everything else for you. Or, if you’d rather, you can visit a BNZ branch. Customers who are new to BNZ can simply complete an online application form.

After you’ve requested the change, you don’t need to do anything else – nor talk to your existing provider. At BNZ we notify your current provider, organise the transfer of your money, and notify the IRD so they can send any new contributions to your BNZ KiwiSaver Scheme account.

The time it takes to change

Your transfer shouldn’t take more than 10 working days to process.

Transfer fees

While it’s relatively rare, some providers charge transfer out (exit) fees. There are no transfer ‘in’ or ‘out’ fees in the BNZ KiwiSaver Scheme.

You won’t lose any money

Your provider won’t lose your money. KiwiSaver money is kept in a trust, and there’s no risk of money being lost due to the transfer process. Just bear in mind that it won’t be invested during the time it’s ‘out of market’ due to the transfer process.

No matter which KiwiSaver provider you’re currently with, it’s good to know that changing providers doesn’t involve a stressful, time-consuming or expensive ‘break-up’.

Related articles

BNZ KiwiSaver Scheme

Find out more

References to third party websites are provided for your convenience only. BNZ accepts no responsibility for the availability or content of such websites.

This article is solely for information purposes and is not intended to be financial advice. If you need help, please contact BNZ or your financial adviser. Neither BNZ nor any person involved in this article accepts any liability for any loss or damage whatsoever which may directly or indirectly result from any information, representation, or omission, whether negligent or otherwise, contained in this publication.

BNZ Investment Services Limited, a wholly owned subsidiary of Harbour Asset Management Limited, is the Issuer and Manager of the BNZ KiwiSaver Scheme. Download a copy of the BNZ KiwiSaver Scheme Product Disclosure Statement PDF 1.1MB, or pick up a copy from a BNZ branch.

Investments in the BNZ KiwiSaver Scheme are not bank deposits or other liabilities of Bank of New Zealand (BNZ) or any other member of the National Australia Bank Limited group. They are subject to investment risk, including possible delays in repayment. You could get back less than the total contributed. No person (including the New Zealand Government) guarantees (either fully or in part) the performance or returns of the BNZ KiwiSaver Scheme or the repayment of amounts contributed. National Australia Bank Limited, the ultimate owner of BNZ, is not a registered bank in New Zealand but a licensed bank in Australia and is not authorised to offer the products and services mentioned on this webpage to customers in New Zealand.

BNZ Investment Services Limited (BNZISL) uses the BNZ brand under licence from Bank of New Zealand, whose ultimate parent company is National Australia Bank Limited. No member of the FirstCape group (including BNZISL) is a member of the NAB group of companies (NAB Group). No member of the NAB Group (including Bank of New Zealand) guarantees, or supports, the performance of any member of FirstCape group’s obligations to any party.