How to switch KiwiSaver in 4 steps (and what actually happens)

Switching KiwiSaver is one of the highest-leverage 30 minutes you'll spend on your finances all year. Get it right and you save tens of thousands over the long run. Get it wrong and you're stuck in a fund that quietly underperforms for another decade.

The mechanics are simpler than they look. Here's the four-step version, plus the gotchas no one warns you about.

Step 1. Pick the right risk band first, then the fund

Most people pick a fund because their mate's in it. That's backwards. Start by figuring out the right risk band for your situation:

• Buying a first home in 1-4 years? Conservative or Defensive.
• 5-9 year horizon? Balanced.
• 10+ years? Growth or Aggressive.

The right band makes a bigger difference to your long-term outcome than the difference between any two funds inside the band. Take the 90-second Health Check if you want a personalised recommendation.

Step 2. Compare on 10-year returns AND fees, not 1-year returns

One-year returns tell you almost nothing. The fund that won 2024 will probably not win 2025. Compare on 10-year annualised returns. those reflect skill, not luck.

Then layer fees on top. A 0.5% fee gap over 30 years on a $200k starting balance is roughly an extra $80,000 at retirement. Run the Fee Impact calculator to see your numbers.

Step 3. Sign one form (the LOA)

To switch, you sign a Letter of Authority. that's the form that lets us (or your new provider) talk to your old one and pull your balance, fund details, and PIR across.

If you're switching within a provider (e.g., Booster Balanced → Booster Growth), it's instant. If you're switching between providers, it takes 10-35 days during which your balance is in transit. You're "out of the market" for that window. usually fine, but there's a small risk of missing a market move.

Step 4. Wait, then check

Once the new provider confirms the transfer, log into their portal and check three things:

• Your balance moved across in full (compare to the old provider's last statement).
• You're invested in the fund you actually picked, not the default.
• Your PIR is correct (this often resets to 28% on transfer. fix it).

The three things that go wrong

• Wrong PIR. Most common. Too high and tax is over-deducted from your returns all year (IRD refunds it at the end-of-year square-up, but it sits out of your fund until then); too low and you'll get a year-end tax bill. Use our PIR Checker to confirm yours.
• Wrong fund inside the new scheme. Some providers default you to their "default" fund unless you specify otherwise. even if you signed up for Growth.
• Stranded balance. A small leftover ($200, $500) sits in the old fund because of timing on contributions. Worth nothing on its own, but accumulates if you keep switching.

If you'd rather not deal with any of this, Smiths can do the whole switch for you. same outcome, no admin.