Switching providers without losing growth

When you switch KiwiSaver providers, your money is "out of the market" for the transfer window. typically 10-35 days. If markets move while your balance is in transit, you might miss out on growth (or dodge a drawdown. it cuts both ways).

Why the delay exists

The old provider has to sell down your holdings, calculate the final balance, hold any in-flight contributions, and transfer the money. The new provider then has to receive it, allocate it to your chosen fund, and buy units. The whole process is manual under the hood.

How to minimise the gap

• Use a Letter of Authority (LOA). An adviser can chase up the transfer; a member just hopes for the best.
• Check the timing. Some providers process transfers weekly, some daily. The ones with daily processing close gaps faster.
• Time it around contributions. Don't switch the week before payday. your latest payroll contribution might land in the old fund and need a follow-up transfer.

What's actually at risk

If your balance is $80k and the market moves 2% during transfer, you miss (or dodge) $1,600. That's real but not life-changing. and over 30 years one missed move averages out.

What's actually expensive is staying in the wrong fund for years because you're worried about the 2-3 week transfer window. The transfer is a once-off; the wrong fund compounds against you forever.

Smiths handles this

If you switch via Smiths, we handle the LOA, chase up the transfer, and confirm everything landed correctly on the other side. No admin for you.