November 17, 2021

Financial Markets Authority : KiwiSaver switching research

In June 2021, the FMA published a review of KiwiSaver member behaviour in response to COVID-19.

The research focused on the increased switching behaviour observed during the period of heightened market volatility in Feb-April 2020. Key results included:

  • 58,356 of the sample 1.5 million KiwiSaver members made 88,112 switches, meaning some made multiple switches. These switching members represented 3.9% of the total sample – 2.7 times higher than the same group in 2019.
  • March 2020 was the peak switching month, with seven times the 2019 average monthly volume
  • On 22 March 2020 there were 6,156 switches – the equivalent of around 20 days’ worth of switches in 2019
  • 5% of switches were to lower risk funds, 11% to equivalent risk funds and 18.5% to higher risk funds

Read full article here: