Changes to the default KiwiSaver scheme mean those who join the scheme at age 18 could be almost $150,000 better off at retirement, the government claims.
Major KiwiSaver shake-up: Who s in, who s out among default providers?
13 May, 2021 08:47 PM
5 minutes to read
The government has announced a major shake-up of the KiwiSaver default providers. Photo / File
The Government has announced a major shake-up in the KiwiSaver default provider appointments with five providers not being reappointed.
There are currently nine default providers but this shrinks to six providers under a new seven-year contract with the government.
People are allocated to a default KiwiSaver fund when they are automatically enrolled through starting a new job and don t choose their own fund.
The newly appointed providers are Bank of New Zealand, Booster, BT Funds Management (Westpac), Kiwi Wealth, Simplicity and Smartshares (NZX).
Minister of
Commerce and Consumer Affairs
Hundreds of thousands
of New Zealanders will be significantly better off in
retirement following changes to the default KiwiSaver
scheme, Finance Minister Grant Robertson and Commerce and
Consumer Affairs Minister David Clark said today.
The
new default provider arrangements, which will take effect
once the terms of the current providers ends on 30 November
2021, mean those joining the scheme at 18 could have an
extra $143,000 at retirement through lower fees and higher
investment returns.
Around 381,000 members are
currently in the default fund they were automatically
allocated to when they started a new job, because they did