Congratulations to Ministers Faafoi and Robertson for announcing that all KiwiSaver default funds will be required to be ‘balanced' funds rather have the current 'conservative' asset allocation, from July 2021.
This is a major win for Kiwi’s and the hundreds of thousands of members who have been languishing in default funds, largely operated by the big banks. You might recall that in our open letter and media release made in July 2018, in conjunction with several other independent financial advisers, we calculated that default members had lost over $1bn over the previous five years because they were in conservative funds.
Since then, we have continued to agitate for change and we made a submission as part of the Government’s review of the default KiwiSaver regime, which you can read here. We strongly supported a switch of default funds from 'conservative' to 'balanced', which is now scheduled to take place next year.
We are delighted with this outcome! Congratulations again, to the Ministers and MBIE.
1 March 2020
Photo by Elisha Terada on Unsplash