New announcement. Learn more


EFS KiwiSaver Providers vs. Bank KiwiSaver Providers

How do they stack up?

Planning for retirement is a journey that requires careful consideration and informed decisions. KiwiSaver, while not always deemed essential, plays a vital role in securing your financial future. It's not just about having an account; it's about aligning yourself with the right provider and choosing a fund that suits your needs. Especially if you're under 50, being too conservative now could significantly impact your retirement savings in the long run.

One concerning trend we've noticed is the multitude of Kiwis who have their KiwiSaver accounts with their banks. Convenience might be the driving force behind this choice, but it often means these individuals haven't actively made an investment decision tailored to benefit them in their golden years.

The reality is, many bank providers fall short in terms of service and advice. They often adopt a set-and-forget approach, which unfortunately doesn't work in favour of their customers. Adding to the disappointment, the returns from bank KiwiSaver accounts rarely inspire excitement.

So, how do the top three bank KiwiSaver providers compare to our leading EFS providers? Let's delve into the returns of their conservative, balanced, and growth funds over different time frames—1, 3, and 10 years. We've gathered this data from the recent June Morningstar KiwiSaver report.

Here's what we found:

Returns displayed are before fees and taxes.

Returns displayed are before fees and taxes.

Returns displayed are before fees and taxes.

Across all three fund options—conservative, balanced, and growth—it's evident that, on average, the EFS KiwiSaver providers have outperformed their bank counterparts over short, medium, and long-term periods. The exception is BNZ's balanced fund, which outperformed ANZ, ASB, Booster, Milford, and Pathfinder's balanced fund over the 1-year period. Notably, Milford has consistently delivered excellent returns across all three funds over the past decade. Pathfinder, New Zealand's leading ethical KiwiSaver provider, has adeptly navigated market volatility over the last three years.

In summary, our EFS KiwiSaver providers have consistently surpassed the performance of all major bank KiwiSaver providers.

If you feel there's more you could be doing with your KiwiSaver and seek personalised advice at no cost, simply fill out our EFS KiwiSaver profiler form. We'll carefully analyse your details and provide tailored recommendations within a few days.

Remember, this article serves as a guide and not financial advice. It's crucial to consult a qualified financial advisor before making any decisions based on your unique circumstances. Past performance is not indicative of future results, but making informed choices today can significantly impact your retirement tomorrow.