B30A

KiwiSaver Annual Report2021

Purpose of this report
The main objective of the Financial Markets Authority (FMA) is topromote and facilitate the development of fair, efficient andtransparent financial markets.
Our aim across all our activities is to raise the standard of conduct,and increase investor and market confidence to support economic
growth in New Zealand.
We are one of several government agencies with a role in regulating
KiwiSaver, which amounts to a substantial part of New Zealand’s
collective wealth.
For many New Zealanders, KiwiSaver may be their first investment
and may be a large part of their retirement savings and ultimate
financial security.
We are required to report each year on our main KiwiSaver activities.
This year’s report covers the period from 1 July 2020 to 30 June
2021, and contains a summary of the statistical returns that must be
lodged by KiwiSaver schemes as at 31 March 2021.
Presented to the House of Representatives pursuant to Section 159
of the KiwiSaver Act 2006.

FMA KiwiSaver Annual Report 2021

Contents

Facts at a glance

2

Executive summary

3

Money in, Money out

6

Key activities

8

Focus area: Fund switching

12

Focus area: Default providers

14

Sir Michael Cullen

16

Appendices

18

﻿

p. 1

FMA KiwiSaver Annual Report 2021

Facts at a glance*
Total membership

Average (mean) balance

3,090,631$26,410up 2.1%

up 29%

Total funds under management

Investment returns$81.6B$13.2Bup 31.7%

up 1708.4%

Member withdrawals**

Combined fees revenue†$3.05B$650.3M

up 7.0%up 20.7%* All figures at 31 March 2021 and year-on-year** First home, mortgage diversion, end payment, death, serious illness, life-shortening conditions, emigration, Australian transfers, other enactments† Management fees, administration fees

Facts at a glancep. 2

FMA KiwiSaver Annual Report 2021

Executive summary
KiwiSaver held up under pressure this year, as global markets
bounced back from the initial shock of COVID-19, despite further
lockdowns here and cases surging overseas.
By the time the 12 months covered by this reportbegan on 1 July 2020, global equities markets
had largely returned to pre-COVID levels; andby October had exceeded them. This was
fuelled by there being few alternatives toequities for investors seeking returns – with low
returns from term deposit and fixed income
assets – and a rapid uptake of online investing
during lockdown.
Despite the pandemic’s ongoing impact,
KiwiSaver has endured its toughest test
to date, and continues to offer millions of
New Zealanders an easy way to save for
their future goals.
Funds under management
As markets recovered from the pandemic’s
initial impact, then went on to reach new heights,
the value of KiwiSaver funds under management(FUM) recovered and grew correspondingly.
As at 31 March 2021, total FUM stood at $81.6
billion, up 31.7% from $62 billion a year earlier,and up from $57 billion at 31 March 2019.
Collectively, funds enjoyed positive investment
returns of $13.2 billion, a major turnaround froma year earlier, when they suffered a loss of $820
million, and up from $3.8 billion two years earlier.
It must be noted that such growth and returns
for a 12 month period are not typical and can be
attributed to the very specific circumstances of
the recovery underway by 1 April 2020.

In fact, when it became obvious how
extraordinary some growth fund returns had
been in the year to 31 March 2021, the FMA
asked fund managers not to promote returns
for that period in isolation, so as not to mislead
investors. The FMA was concerned investors
may form an inaccurate and unrealistic view,
based on the 12 month returns, of what theyshould expect from investing in general;
or of the skill of specific managers.
Fees

In April 2021, the FMA published guidance
outlining providers’ responsibility to annuallyreview their fees with their supervisor and checkthat these are not unreasonable and represent
value for money. We detail this further on page 8.
Since the end of the reporting period, Westpac
has announced it will remove its $12
administration fee and reduce fund charges by
up to 0.26% from September 2021, while AMP
has introduced a flat fund charge of 0.79%.
Withdrawals

The higher returns many members enjoyed in
2020-21 also meant provider fees had less
impact on balances this year.
Combined fees revenue (management andadministration and fees) increased 20.7% to$650.3 million, reflecting higher aggregate FUM(up 31.7%) and extraordinary returns andassociated fees. By comparison, combined fees
revenue in the more ‘normal’ 2018-19 year was$479.8 million
It was encouraging to see income fromadministration fees decrease 4.8% to almost$80.8 million, as a number of KiwiSaver
schemes reduced or changed the structure ofadministration fees. That compares with $91.8
million in the 2018-19 year. We have previously
said that as scale and member balances
increase, we see little justification for schemes
to charge both a fixed membership fee and abase management fee, so it is pleasing to see anumber of providers act on this.

Executive summaryp. 3

While markets recovered swiftly in mid-2020,
the period covered by this report included a risein unemployment. These conditions prompted a
big increase in members asking about hardshipwithdrawals, and providers reporting difficulties
with the application process during lockdowns.
The FMA assisted by allowing alternative steps
to verify applicants’ identities and financial
circumstances, and working with providers toensure members were aware of government
support packages, and being reminded that
hardship withdrawals should be a last resort.
In the year to 31 March 2021, significant financial
hardship withdrawals rose 42.8% to $159.3
million, up from $111.5 million a year earlier, and$107.9 million in 2019. There were 21,000
hardship withdrawals worth an average of $7,584– up from 17,534 withdrawals worth an average of$6,359 the year before.

FMA KiwiSaver Annual Report 2021

That’s still a low proportion of all withdrawals.
Over-65s withdrew $1.22 billion, down 8.3%
year-on-year, but up from $1.04 billion in 2019.
The number of over-65 members continued toincrease, by 15% to 147,331. Fewer over-65s fully
exited KiwiSaver during the year, down 14% to19,512. Since 1 July 2019, over-65s have been
allowed to join KiwiSaver and it is clear that
more are continuing to leave money within thescheme beyond retirement age.
At the same time, the amount withdrawn for firsthomes rose 18.8% to $1.4 billion, continuing a
steady trend upward, from $1.2 billion last year
and $953 million in 2019.
It was also the first year people with congenital
life-shortening conditions were allowed early
access to KiwiSaver. From 26 March 2021, thosewith Down syndrome, cerebral palsy,
Huntington’s disease and fetal alcohol spectrum
disorder were automatically entitled to apply tomake such withdrawals, while those with rarer
conditions can do so with medical verification.
Three schemes have since paid $259,998 inrespect of 14 withdrawal applications.
Fund switchingThis year there were 377,895 switches between
funds of different risk types but with the sameprovider. This is down 9.3% on the previous year,
which included a very high level of switchingassociated with the market volatility of February
to March 2020, but it is still well above the240,378 fund switches seen in the 2018-19 year.
In total, almost $6.7 billion moved between
funds with different risk profiles, including$2.6 billion into growth funds.
When COVID-19 hit, the FMA commissioned
research into switching to better understandhow investors behave when markets are volatile,and the drivers of that behaviour. See more on
page 12.

Transfers
The total number of transfers between different
KiwiSaver schemes was 157,679 – down 12.6%
on the prior year.
Excluding the 45,336 default members who
made an active choice to stay with the same
scheme, the number of transfers was 112,343,
down 18.2% year-on-year.
KiwiSaver members now have more choice, too,with the addition of four new schemes during theyear – from Aurora, InvestNow, KiwiWrap andSelect – taking the total number of schemes
to 37.
Default funds
Around one in nine KiwiSaver members remain
in a default scheme after being automaticallyenrolled when they started a new job. The
number of members in default schemes who
have not made an active choice was 356,021
at 31 March 2021, down 6.6% annually. This
continues a steady downward trend in the
proportion of default members who have notyet made an active decision about their fund.
In March 2021, the Government announced new
settings for default members including a movefrom conservative to balanced funds.
Other changes from December 2021 include
a reduction in default fund fees, the exclusionof fossil fuels and illegal weapons from equity
holdings, and a requirement that providers
engage with members at key life-stages,
to help them make informed decisions
about their savings.
We discuss default funds further in our Focus
Area on page 14.

Executive summaryp. 4

The amount withdrawn forfirst homes rose 18.8% to$1.4 billion, continuing a
steady trend upward, from
$1.2 billion last year and$953 million in 2019.

FMA KiwiSaver Annual Report 2021

Executive summaryp. 5

FMA KiwiSaver Annual Report 2021

Money in*Year to 31 March 2021

1,883,118
members contributed
to their accounts
up 3.9%Together they contributed:$4.8B$1.85Bthrough salaries & wages

in lump sum contributions

up 16.3%

up 14.5%

Other contributions included:

$2.7B

$891M

from employers

from the Crown

up 19.5%

up 6.1%* All figures at 31 March 2021 and year-on-year

Money in, Money out

p. 6FMA KiwiSaver Annual Report 2021

$3.05B

Money outmember withdrawals**
were madeYear to 31 March 2021

up 7.0%Withdrawals included:$1.22B$1.4B$159.3M

by over-65s

for first homes

for hardshipdown 8.3%

up 18.8%

up 42.8%

KiwiSaver providers also charged:$569.5M$80.8M

in management feesin administration fees

up 25.4%

down 4.8%** First home, mortgage diversion, end payment, death, serious illness, life-shortening conditions, emigration, Australian transfers, other enactments

Money in, Money out

p. 7

FMA KiwiSaver Annual Report 2021

Key activities
FMA guidance on reasonable
fees and value for money• where scale exists in the industry, its benefits
typically aren’t being passed on to investors

In April 2021, the FMA published its Managed
fund fees and value for money guidance, to help
fund managers and supervisors demonstrate
how they are meeting their obligations, statutory
duties and conduct expectations in respect offees and value for money.

• no systematic relationship between fees andreturns, or the degree of active management

The FMA published the guidance after research
into the KiwiSaver market found:• passive managers typically don’t closely
replicate their index’s performance, after fees

• active managers typically don’t outperformtheir index over meaningful periods,
after fees

Our guidance said managers are expected toannually review their fees with their supervisors,
and to take concrete steps if they find their fees
are unreasonable and don’t represent value formoney – by increasing their services, reducing
fees, or both.
Managers were told they must prove such
reviews are happening, and our message that
failure to do so could trigger a regulatory
response was conveyed widely by significant
media coverage.
Key aspects of the guidance included:• There is little justification for membershipfees to be charged by investment managers
who have achieved scale. So KiwiSaver
schemes should move toward eliminating
membership fees from their fee structures.
• Where fees are charged for advice, theinvestment manager must demonstrate theadvice is received, not just ‘offered’; isongoing, not just at onboarding; that the fee
charged is reasonable; and that the fee, andto whom it is paid, is disclosed to members.
• Where fees are charged for services otherthan advice (for example, a robust
investment process), the manager must
demonstrate how the service adds value tothe member’s account – by adding return,
reducing risk, or ideally, both.

Key activities

p. 8

FMA KiwiSaver Annual Report 2021

MEMBER FEES – ACTIVE & DEFAULT

Year

Activemembers

Total
fees*

2016

2,163,597$295,582,958

2017

2,275,613$350,291,390

2018

2,405,877$415,246,077

2019

2,535,979$475,840,973

2020

2,645,030$542,374,889

2021

2,734,610$657,404,966

Year

Default
members

Total
fees*

2016

444,786$30,330,423

2017

446,534$32,358,553

2018

431,779$32,469,497

2019

398,289$31,114,573

2020

381,034$29,576,781

2021

356,021$25,739,432

Average fees
per member

$137

$154

$173

$188

$205

$240

Average fees
per member

$68

$72

$75

$78

$78

$72

* Management fees, administration fees, supervisor and trustee fees, other scheme expenses

Key activities

p. 9

FMA KiwiSaver Annual Report 2021

Integrated financial products
In December 2020, the FMA issued guidance tothe market on integrated financial products, thetwo main types being ‘responsible’ or ‘ethical’
KiwiSaver funds, and ‘green’ bonds.
The Disclosure framework for integrated
financial products outlines expectations
around fair dealing, the type of disclosure
expected from issuers, and the FMA’s
enforcement options.
The guidance supports New Zealand’stransition to an ‘integrated financial system’,
which takes into account non-financial factors
such as natural, social and human impacts, notjust financial returns.

For example, while only some funds are
explicitly labelled as responsible or ethical,
FMA research has shown that 31 of 37 schemes
state in their PDS that they consider aspectsof responsible, ethical or ESG investment intheir decision-making.
So while the data shows 22,119 members werein funds labelled as ‘socially responsible’ at
31 March 2021, which is up 56% year-on-year,
and 151.5% over five years (with total holdings of$554 million, a leap of over 700% since 2016),
that likely understates the number of members
who have chosen a fund based on green, ethicalor other values-based criteria.

Misleading marketing, poor product design andother types of ‘green-washing’ all have thepotential to undermine investor confidence in
integrated financial products. This iscomplicated by providers not clearly explaining
what they mean when they use terms such as‘responsible’, or not substantiating those claims.

Key activities

p. 10

Misleading marketing, poor
product design and othertypes of ‘green-washing’
all have the potential
to undermine investor
confidence in integrated
financial products.

FMA KiwiSaver Annual Report 2021

Looksee fund choice campaign
In May 2021, the FMA undertook its annual
campaign to encourage KiwiSaver members
to engage with their KiwiSaver statements,
and to take action to improve their settings,
if applicable.
Our “Looksee” campaign again encouraged
members to “take a looksee” at theirstatements, with a call this year to “check you’rein the right fund for you”, aimed at younger
members in particular.

This year’s focus on younger members followed
data indicating over 12,000 members aged
26-35 were still in lower risk funds afterswitching from higher growth funds when
COVID-19 first hit.

During the campaign, members were urged to
ask themselves:

We also found that some young people areunsure how different types of KiwiSaverfunds worked.

• Am I getting good value from my KiwiSaver
provider – do their fees seem reasonable?

Key activities

p. 11• Am I in the right KiwiSaver fund?
• Can I afford to contribute more?

• Am I happy with the amount of money I’ll
have in my KiwiSaver at 65?

FMA KiwiSaver Annual Report 2021

Focus area:
Fund switching
While changing fund risk types is encouraged when appropriate to a member’s
needs and goals, panic switching at times of volatility is not recommended dueto the risk of crystallising losses and missing out on returns over the long-term.
In the year to 31 March 2021, there were377,895 fund switches, worth almost$6.7 billion.
The number of switches is down 9.3% on theyear before, which included the most volatile
period of February to March 2020, but still
57.2% higher than the more ‘normal’ year
ended March 2019.
Almost 39% of those who switched did so intoa higher-risk growth fund – a figure that issimilar to those who did the same in 2019(34.6%) and 2018 (40.7%).
The FMA commissioned PwC to analyse andbetter understand the switching behaviour
during the most volatile market period. The
report used data from seven providers with
1.5 million members, capturing switching
behaviour from February to April 2020
compared with the same period in 2019.
The report found 3.9% of the sample had made88,112 switches during that three-month period,
some making multiple switches. Of them,
70.5% had moved to lower risk funds duringthat volatile February to March 2020 period,and 18.5% into higher risk funds.

Younger people and members of bank-run
schemes drove the higher level of switching.
Those aged 26 to 35 made five times thenumber of switches, year-on-year, from 5,195
to 26,507, as did those in bank-run schemes,
from 14,703 to 73,330.
The chart opposite from the PwC reportshows the abnormally high level of switchingin March 2020. As it ends in August 2020, it
does not show the full extent of switchingback to higher risk funds, as noted above.
Concerningly, less than 10% of those whowent lower risk during February to April 2020
had gone back to a higher growth fund by
August (the end period of data available for
the PwC report), meaning 90% effectively
locked in their losses. The fact the full year
switching behaviour is only back to preCOVID levels suggests the majority of thoseinvestors may still be in conservative funds.
Future considerations for providers included
improvements to customer communications,such as highlighting the risks of switching, andprompts to have members pause before
completing a switch.

Case study: Anna, 24
When Anna saw her KiwiSaver balance drop by$2000 in March 2020, she promptly changed
her fund type from growth to conservative.
“I got scared because I didn’t understand how
KiwiSaver really works, so I thought I had lost awhole bunch of money and I would never get it
back, so then I switched immediately toconservative to keep the money that I had andhopefully not lose any more.”
Anna says she found the switching process
straightforward but admits she didn’t properly
read her provider’s questionnaire on theimpact of switching funds.
“I was so in the moment that I just switched it
without reading.”
She then discussed her move with her mother,an accountant, who advised her to switch backto growth because it aligned with the timelineof her financial goals.
“She explained what [KiwiSaver] actually was
to me [and said] if I don’t want to use the moneyin the next, like, six years then I should keep
it in growth.”
Anna wants more communications fromproviders to explain how KiwiSaver works andthe impact of market volatility on different
types of investments.

Focus area: Fund switchingp. 12

FMA KiwiSaver Annual Report 2021

Case study: Sarah, 45
Sarah got a fright when she saw her
KiwiSaver balance drop by $8,000 in lateMarch 2020. She immediately decided toswitch her fund from balanced toconservative.
“When my balance dropped it was horror,
really. I just thought, ‘Oh this is going to put
me further behind with getting on the[property] ladder.’ I said I didn’t want to lose
more than I already had.”
Sarah says she did receive some advice
from her provider but it didn’t influence her
choice – the most important thing was that
her balance didn’t drop any further.

FUND SWITCHING DIRECTION BY MONTH
Jan 2019 - Aug 2020

“I talked to one friend about it, she said,‘Nah, leave it where it is’, but she is in amuch better financial position than me. I
just felt this was a better move for me.”50,000Lower risk
*Anna and Sarah are not real names. Both wereinterviewed in April 2021 as part of the FMA’s
research into fund switching.

NeutralAug 2020

Jul 2020

Jun 2020

Apr 2020

May 2020

Feb 2020

Mar 2020

Dec 2019

Jan 2020

Oct 2019

Nov 2019

Sep 2019

Aug 2019

Jul 2019

Jun 2019

0

Apr 2019

10,000

May 2019“The more information the better, the more
explanations, it would really help.”

20,000Feb 2019

Sarah wants more education on KiwiSaver
put out by providers, to improve theknowledge of those who are disengaged,
so they understand how an investment
fund works.

30,000Mar 2019“It might be true that I shouldn’t haveswitched, but there weren’t guarantees at
the time and I couldn’t afford that or afford
to take the risk, so I switched.”

40,000Jan 2019

She remembers social media debate about
the merits of switching, but admits she isrisk averse.

Reporting period differs from FMA KiwiSaver Annual Report

Higher risk

Source: ‘Lockdown: A review of KiwiSaver member behaviour in response to COVID-19’, PwC, 2021

Focus area: Fund switchingp. 13

FMA KiwiSaver Annual Report 2021

Focus area:
Default providers
Up to this year, default funds have been a particular focus of the government
and providers, with significant resources put into encouraging members tomake an active choice by considering if their allotted fund was right for them.
What were meant to be ‘parking space’ funds
where members would sit temporarily, with alower-growth, less risky conservative setting,became permanent homes for the funds ofthose members lacking the information or
inclination to move.
As at 31 March 2021, the number of people indefault funds fell 6.6% year-on-year, to356,021. That equates to 11.5% of all members,
and continues a steady downward trend, from
17.1% in March 2016. Total FUM of all thosedefault members fell slightly to $3.96 billion.
The proportion of default members who were
contributing at the end of the year was 47.2%
versus 62.7% of active members.

In March 2021, the Government announced new
default arrangements, most notably that all
current and future default members would be
put into balanced funds.
Because of this change in risk settings, ourfuture focus will be on whether any moves bydefault members out of their allotted default
funds is in those members’ interests. We will
also be reviewing how many active members
join the default funds, attracted by the lower
fees and balanced risk setting. Providers
must ensure their default funds are open
to all members.

New KiwiSaver members allocated to a default
scheme during the year decreased 16.8%
to 51,113.
Meanwhile, the number of default members
who made an active choice increased 5.1%
to 45,336.

Focus area: Default providers

p. 14

The Government also wanted to lower default
fees and make them more simple andtransparent, and MBIE managed a competitive
procurement process that put downward
pressure on fees, including asking providers
how they will benefit members withlow balances.
Providers were also restricted to charging one
percentage-based fee and/or one fixed fee. Allproviders have ultimately opted for charging
only a percentage-based fee.

FMA KiwiSaver Annual Report 2021

Importantly, they must now engage withmembers at key milestones, such as when theyfirst join, and 10 years and one year before theyturn 65; after a first home withdrawal; whenannual statements are sent out; duringsignificant market volatility; and after 18 monthsof someone not contributing.
Six default providers were ultimately appointed,
down from the previous nine. Four were retained
as providers, while another five were not, asshown in the table below. None of the original
six default providers from 2007 were among
those reappointed.
The new default arrangements commenceon 1 December 2021. At 30 June, there were263,000 members of the five schemes thatwere not reappointed who will be transferred
to one of the six appointed schemes. Membersof reappointed schemes will be moved to abalanced fund with their current provider.

DEFAULT MEMBERS MAKING ACTIVE CHOICES, BY PROVIDER
Number of members and annual difference
Provider

2020

2021

Difference

AMP

5,525

7,673

39%

ANZ

4,823

3,701

23%

ASB

12,024

9,858

18%

BNZ*

1,951

838

57%

Booster*

3,347

3,715

11%

BT Funds (Westpac)*

4,026

2,853

29%

Fisher Funds

3,448

5,016

46%

Kiwi Wealth (Kiwibank)*

2,546

6,204

144%

Mercer

5,433

5,478

1%

Total

43,12345,336

5%*Retained 2021 – 2028

Non-continuing providers are expected to stop
all proactive efforts to engage default members
from 30 September 2021, excluding those inthat month’s final allocation of default members.
The FMA will monitor the transition andproviders’ progress against the engagement
standards and all service standards under theInstrument of Appointment. Default providers
will need to report to us every six months.
It’s hoped positive outcomes from this year’schanges, including default members earning
better returns, will begin to show in the next
12 months.

KIWISAVER DEFAULT FUND PROVIDERS
Changes announced May 2021
Retained

Newly selected

Not retained

D BNZ
D BT Funds (Westpac)
D Booster
D Kiwi Wealth (Kiwibank)

D Simplicity
D Smartshares (NZX)

U AMP
U ANZ
U ASB
U Fisher Funds
U Mercer

Focus area: Default providers

p. 15

FMA KiwiSaver Annual Report 2021

Sir Michael Cullen(1945–2021)
The Board and Chief Executive of the Financial Markets Authority note withsadness the passing of the architect of KiwiSaver, Sir Michael Cullen.
Sir Michael was Deputy Prime Minister and Minister of Finance when the
KiwiSaver Act was passed in 2006 and the scheme began on 1 July 2007.

“KiwiSaver is a landmark in oursocial and economic history. It will
help New Zealanders build up
more financial assets more
quickly. It will help more
New Zealanders feel wealthierand more secure.”“Greater saving, coupled withincreasing investment ininnovation and productivity, will
help make the economy much
more resilient so we can better
deal with the long term game.”
Sir Michael Cullen, June 2007

Sir Michael Cullen

p. 16

FMA KiwiSaver Annual Report 2021

Appendices

Sir Michael Cullen

p. 17

FMA KiwiSaver Annual Report 2021

Appendix 1
Income and expenditure summary
KiwiSaver schemes as at 31 March 2021
Default

ActiveTotal$4,062,137,074$57,891,908,947$61,954,046,021

Member contributions at section 64 contribution rate

$380,768,005$4,458,524,581$4,839,292,586

Employer contributions$240,980,777$2,457,987,988$2,698,968,765

Crown contributions (section 226) and fee subsidies$75,576,060$815,375,787$890,951,847

Transfers of members’ accumulations into scheme from other KiwiSaver
schemes$7,222,195$3,469,253,777$3,476,475,972

Transfers of members’ accumulations into scheme from other retirement
schemes$309,079$47,840,092$48,149,171

Opening balance of scheme assets at start of annual return year
Categories of income for annual return year

Transfers of members’ accumulations into scheme from Australiansuperannuation schemes$5,151,699$144,743,456$149,895,155

Lump sum contributions$19,328,461$1,828,219,380$1,847,547,841

Other voluntary contributions over section 64 contribution rate

$3,189,648$251,480,606$254,670,254$328,368,006$12,868,509,102$13,196,877,108$349,205$12,317,628$12,666,833$1,061,243,135$26,354,252,397$27,415,495,532

First home purchase withdrawals$48,614,121$1,367,425,641$1,416,039,762

Mortgage diversion withdrawals$0$45,857$45,857

KiwiSaver end payment date withdrawals$45,389,837$1,175,608,471$1,220,998,308

Withdrawals on death$5,402,343$84,484,891$89,887,234

Serious illness withdrawals

Income from investment of scheme assets
Other income
Total income from annual return year
Categories of expenditure for annual return year

$3,575,110$55,143,200$58,718,310

Life-shortening congenital condition withdrawals$0$259,998$259,998

Withdrawals or transfers on permanent emigration$3,443,912$42,540,746$45,984,658

Significant financial hardship withdrawals$8,485,011$150,789,196$159,274,207$986,560,080$2,537,115,222$3,523,675,302$3,302,741$42,536,345$45,839,086$647,520$13,957,742$14,605,262

Transfers of members’ accumulations out of scheme into other KiwiSaver
schemes
Transfers of members’ accumulations out of scheme into Australiansuperannuation schemes
Amounts required to be paid under other enactments
Invalid enrolment withdrawals$5,931,211$5,258,369$11,189,580

Administration fees

$8,355,217$72,408,538$80,763,755

Investment management fees

$16,863,572$552,702,777$569,566,349$313,852$7,624,509$7,938,361

$0

$0

$0

$22,056,235$452,614,672$474,670,907$206,791$24,669,142$24,875,933

Total expenditure for annual return year

$1,159,147,553$6,585,185,316$7,744,332,869

Closing balance of scheme assets at end of annual return year

$3,964,232,656$77,660,976,028$81,625,208,684

Supervisor fees and (in the case of a restricted scheme) Trustee fees
Insurance premiums
Taxation
Other scheme expenses

Note: The statistical returns are unaudited and may not include all transactions. Some providers are not able to differentiate between different types of transfers. Thismeans there are sometimes discrepancies between transfers to and from KiwiSaver schemes. Opening balances do not agree with last year’s reported closing balances.

Appendicesp. 18

FMA KiwiSaver Annual Report 2021

Appendix 2
Membership summary
KiwiSaver schemes as at 31 March 2021

Number of contributing members at start of annual return year

Default

ActiveTotal

184,783

1,627,508

1,812,291

48,48653,074

101,560

Categories of entries of members for annual return year
New members (other than transfers from other schemes)
Members restarting contributions at end of section 104 contribution holidays

4,432

28,52032,952

Members restarting contributions after stopping contributions for any other reason

32,035

164,673

196,708

Members transferring into scheme from other KiwiSaver schemes

23

161,635

161,658

Members transferring into scheme from Australian superannuation schemes

27

1,402

1,429

Members transferring into scheme from other retirement schemes

5

443

448

85,008409,747

494,755

1,867

17,645

19,512

381

2,852

3,233

Total entries for annual return year
Categories of membership exits for annual return year
KiwiSaver end payment date exits
DeathsPermanent emigration exits
Transfers out of scheme into other KiwiSaver schemes
Transfers out of scheme into Australian superannuation schemes
Other permanent exits

212

1,656

1,868

59,437

98,242

157,679

216

1,828

2,044

6,663

2,642

9,305

Invalid enrolment withdrawals

4,778

2,057

6,835

Members starting section 104 contribution holidays

2,643

36,26938,912

Member stopping contributions for other reasons

25,413

159,127

184,540

Total temporary and permanent exits for annual return year

101,610322,318

423,928

Number of contributing members at end of annual return year

168,181

1,714,937

1,883,118

Number of members on section 104 contribution holidays at start of annual
return year

19,752

109,155

128,907

Members starting section 104 contribution holidays

2,643

36,26938,912

Members ending section 104 contribution holidays and restarting contributions

4,432

28,52032,952

Members ending section 104 contribution holidays but not restarting
contributions for any reason

3,812

18,047

21,859Number of members on section 104 contribution holidays at end of annual
return year

14,151

98,857113,008

Number of other non-contributing members (not on section 104 contribution
holidays) at start of annual return year

176,499

908,368

1,084,867

Categories of non-contributing members on section 104
contribution holidays

Categories of other non-contributing members (not on section 104
contribution holidays)

Members stopping contributions without section 104 contribution holidays

29,225

177,121

206,346

Members restarting contributions after having stopped contributions without
section 104 contribution holidays

32,035

164,673

196,708

Number of other non-contributing members (not on section 104
contribution holidays) at end of annual return year

173,689

920,816

1,094,505

Total number of members at end of annual return year

356,0212,734,610

3,090,631

Note: Some providers currently have an inability to differentiate between different types of transfers, therefore there are discrepancies in transfers to and transfers from
KiwiSaver schemes. There are also timing differences.

Appendicesp. 19

FMA KiwiSaver Annual Report 2021

Appendix 3
Age and gender profile of members
KiwiSaver schemes as at 31 March 2021

Default members
Age at end of annual return year

FemaleMale

Gender unknown

Total

3,116

2,888

12

6,016

18-25

31,63935,929772

68,34026-30

19,20922,127346

41,682

31-35

23,662

24,528295

48,48536-40

19,625

20,730243

40,59817 and under

41-45

16,174

16,874

185

33,23346-50

16,07916,252

174

32,505

51-55

14,10814,472

148

28,72856-60

12,736

12,653

95

25,484

61-65

9,159

9,451

90

18,700

66-70

3,989

4,103

33

8,125

71-75

1,578

1,563

8

3,149

76-80

242

283

2

527

81-85

5

7

0

12

86 and over

17

21

0

38

Unknown age

171

222

6

399

171,509

182,103

2,409

356,021

FemaleMale

Gender unknown

Total

17 and under

123,902130,469

1,224

255,595

18-25

185,646

190,699

2,582

378,927

TotalsActive members
Age at end of annual return year

26-30

150,172

152,721

1,953

304,846

31-35

146,138

145,5282,354

294,02036-40

129,066

124,2292,182

255,477

41-45

117,634

108,455

1,794

227,88346-50

126,743

111,9031,520

240,166

51-55

123,063

107,458

1,227

231,748

56-60

119,464

104,549

1,060

225,073

61-65

98,84485,733

722

185,299

66-70

46,38941,147257

87,79371-75

20,226

18,51493

38,833

76-80

4,180

4,073

36

8,289

81-85

188

182

5

375

86 and over

97

92

1

190

Unknown age

32

59

5

96

1,391,784

1,325,811

17,0152,734,610

TotalsAppendicesp. 20

FMA KiwiSaver Annual Report 2021

Total members
Age at end of annual return year

FemaleMale

Gender unknown

Total

17 and under

127,018

133,357

1,236

261,61118-25

217,285

226,6283,354

447,26726-30

169,381

174,848

2,299

346,528

31-35

169,800

170,056

2,649

342,505

36-40

148,691

144,959

2,425

296,075

41-45

133,808

125,329

1,979

261,11646-50

142,822

128,155

1,694

272,671

51-55

137,171

121,930

1,375

260,476

56-60

132,200

117,202

1,155

250,557

61-65

108,003

95,184812

203,999

66-70

50,37845,250290

95,91871-75

21,80420,077

101

41,982

76-80

4,422

4,356

38

8,816

81-85

193

189

5

387

86 and over

114

113

1

228

Unknown age

203

281

11

495

1,563,293

1,507,914

19,424

3,090,631

Number ofmembers

Scheme assets
held for thosemembers ($)

Default members allocated to scheme by Commissioner under section 51 in annual return year

51,11380,339,345

Other new members entering scheme in annual return year (including transfers from other schemes andactive choice members)

90,406

1,466,540,852

TotalsAppendix 4
Profile of new default and other members
KiwiSaver schemes as at 31 March 2021

Note: Some providers have included members who have since opted out, while others have not.

Appendicesp. 21

FMA KiwiSaver Annual Report 2021

Appendix 5
Summary of non-contributing members(not section 104 contribution holidays)
KiwiSaver schemes as at 31 March 2021

Number of default
members

Scheme assets
held for default
members ($)

Number of active
members

Scheme assets
held for active
members ($)

Number of non-contributing members (not on section 104
contribution holidays) at start of annual return year

176,499

1,019,553,418

908,368

10,480,304,664

Number of non-contributing members (not on section 104
contribution holidays) at end of annual return year

173,689994,923,456

920,816

13,817,631,997

Note: ‘Non-contributing member’ means:• a member for whom no contributions have been received in the previous two months, or• where the member does not contribute via the IRD, the member has failed to meet their contracted contribution frequency.

Appendix 6
Investment fund summary
KiwiSaver schemes as at 31 March 2021
Number ofmembers in eachAmount in each
investment fund investment fund ($)
Default investment product under instrument of appointment in respect of default members

356,0213,964,232,656

Totals356,0213,964,232,656

Active Default

304,8816,319,441,883

Conservative544,198

10,984,714,562

Balanced

756,256

21,822,455,867

Growth1,328,805

32,716,699,662

Cash408,718

3,159,088,025

Fixed Interest

50,351

433,175,600

Shares

79,271

1,165,513,860

Property

7,414

88,089,585

Socially Responsible

22,119554,323,908

Other

10,855

417,473,076

Totals3,512,868

77,660,976,028

Multi Sector

Single Sector

Note: The statistical returns are unaudited and may not include all transactions. Some members will be invested in more than one investment fund.
“Other” refers, in the main, to life stages products.

Appendicesp. 22

FMA KiwiSaver Annual Report 2021

Appendix 7A
Switches out of default investment products into other investment funds
KiwiSaver schemes as at 31 March 2021
Number ofmembers out of
default investment
product

Number ofAmount ($) out ofmembers into default investment
other funds
product

45,336776,466,995

Switches out of default investment product under
instrument of appointment

Amount ($) into
other funds

Switches into other investment funds
Multi Sector
Active Default

23,098410,449,939

Conservative

1,520

26,107,108

Balanced

8,755

159,989,139

Growth11,910152,887,213

804

11,008,219

Single Sector
CashFixed Interest
Shares85888,396

1,241

10,410,056

Property

26

130,563

Socially Responsible

632

4,596,362

Total switches into other investment funds

45,33648,071

776,466,995

776,466,995

Note: Switches out includes members making an active choice to switch out of the provider’s default fund into another of the provider’s funds, and members who make anactive choice to remain in the default fund. Note that some providers are currently unable to report both, so the total shown is likely to be understated.

Appendix 7B
Switches between investment funds
KiwiSaver schemes as at 31 March 2021
Number ofswitches into
investment fundNumber ofswitches out ofinvestment fundAmount ($) into
investment fundAmount ($) out ofinvestment fundNet change inamounts ($)

Multi Sector
Active Default

10,750322,739,649

31,081

751,222,197-428,482,548

Conservative

79,663

1,067,099,545

75,262

1,389,983,457-322,883,912

Balanced

64,806

1,678,123,874

68,4581,680,347,610-2,223,736

Growth148,885

2,602,502,147

111,279

1,553,455,657

1,049,046,490

28,543

716,151,583

43,774

1,057,860,755-341,709,172

Single Sector
CashFixed Interest

8,165

59,414,632

8,441

76,026,853-16,612,221

Shares

32,745147,065,420

33,319133,660,396

13,405,024

Property

3,615

14,390,463

4,435

16,265,109-1,874,646

Socially Responsible

4,168

75,967,707

1,753

22,780,647

53,187,060

68

3,061,986

93

4,914,325-1,852,339

381,408

6,686,517,006

377,895

6,686,517,006

0

Other
Total of switches between funds

Appendicesp. 23

FMA KiwiSaver Annual Report 2021

Appendix 8
Profile of switches between investment funds
KiwiSaver schemes as at 31 March 2021
Number of switches between investment funds made in annual return year

Default

Active1 switch

38,128198,078

2 switches

026,3343 switches

0

5,670

4 switches

0

2,579

5 switches or more

0

2,797

Total assets $M

Total membershipAppendix 9
Analysis according to size of scheme assets
KiwiSaver schemes as at 31 March 2021
Number ofschemes
Under $10m

2

3

52

$10m to under $100m

8

288

9,331

$100m to under $500m

7

2,316

65,041$500m to under $1,000m

2

1,380

34,753$1,000m to under $5,000m

1230,035

1,036,555$5,000m and over5

47,604

1,944,899

Total

36

81,6253,090,631

Note: The data has been obtained from statistical returns made by KiwiSaver providers. Some totals may not be exact, due to rounding.

Appendix 10
Analysis by nature of scheme
KiwiSaver schemes as at 31 March 2021
Number ofschemes

Total assets ($M)

Total membership

Default schemes

9

3,964

356,021

Retail (active choice)31

76,1682,707,752

Restricted schemes

5

1,493

26,858

Total

36

81,6253,090,631

Nature of scheme

Note: Default scheme statistics are only in respect of members and assets in the default investment fund options. Retail (active choice) total assets and total membershipfigures include that portion of the default schemes where members have actively chosen to participate.
The data has been obtained from statistical returns made by the KiwiSaver providers to the members and beneficiaries of those schemes.
Some totals may not be exact due to rounding.

Appendicesp. 24

FMA KiwiSaver Annual Report 2021

Appendix 11A
Analysis according to nature of schemeand size of scheme assets
KiwiSaver schemes as at 31 March 2021

Number of schemes
Assets grouping

Retail schemes

Restricted
schemes

Total schemes
8

Under $10m

2$10m to under $100m

5

3

2
1

$100m to under $500m

6$500m to under $1,000m

2

7$1,000m to under $5,000m

11$5,000m and over5

Total (all groups)

31

5

36

Retail assets

Restricted assets

Total assets

190

98

288

380

2
1

12
5

Note: The above table does not take into account the default component of the schemes.

Total assets ($ millions)
Assets grouping

Default assets

Under $10m

3$10m to under $100m$100m to under $500m

484

1,935

$500m to under $1,000m

3,481

1,380

$1,000m to under $5,000m

26,907$5,000m and over

45,752

Total (all groups)

3
2,799
4,861
1,015

27,92245,752

3,964

76,168

1,493

81,625

Default

RetailRestricted

Total members

6,372

2,959

9,331

9,040

144,631

Total membership
Assets grouping
Under $10m

52$10m to under $100m$100m to under $500m

79,59056,001$500m to under $1,000m

276,431

34,753$1,000m to under $5,000m

834,847$5,000m and over

1,775,727

Total (all groups)

356,021

Appendices2,707,752

p. 25

52

311,184
14,859849,706
1,775,727

26,8583,090,631

Auckland
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Phone +64 9 300 0400

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ISSN No. 2324-5522 (Print)
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