News: Mercer continues as a KiwiSaver provider

The Government has recently announced providers of default KiwiSaver schemes and default investment options.

From 1 December 2021, Mercer will remain a KiwiSaver provider, and our focus will be on active management, diversification and responsible investing. We will no longer be a default KiwiSaver provider, but we are committed to delivering sustainable futures and strong retirement outcomes for New Zealanders.

What does this mean for me?

Regardless of how you joined, if you are currently investing in either the Mercer Shares, Mercer High Growth, Mercer Growth, Mercer Moderate, Mercer Balanced or Mercer Cash investment options, the changes do not affect you.

If you are currently investing in the Conservative investment option, you may be affected if you’ve not told Mercer you want to stay in the Conservative investment option.

Please login in to your account to review your investment options, by clicking on Investments page.

To find out if you are still a default member, please call us on 0508 637 237.

What are KiwiSaver default schemes, investment options / funds?

People who do not choose a KiwiSaver provider or a scheme when they start work and who are not already a KiwiSaver member are automatically enrolled in a ‘default scheme’ and until 30 November 2021 into a ‘Conservative investment option’.

The Government chooses the providers of default schemes and regulates the investment option the default members are enrolled in.

What does this mean for the Mercer KiwiSaver scheme members?

These changes only affect ‘default’ members – people who have been automatically enrolled into the Mercer KiwiSaver scheme and who have not made an investment choice since joining.

• If you are a default member and do nothing prior to 1 December, your KiwiSaver savings will be moved to a different provider and into a balanced investment option (from conservative) after 1 December. Please contact us on 0508 637 237 if you want to stay in a conservative investment option or would like to switch to a different investment option.
•  If you have chosen the Mercer KiwiSaver scheme or have made an investment choice, the changes do not affect you.
  
• If your employer has a preferred provider agreement for the Mercer KiwiSaver scheme, the changes do not affect you. Mercer will continue to accept and auto-enrol members. Please check with your employer if you are unsure.

Do I need to switch my KiwiSaver to another provider?

No. Mercer will continue to be a KiwiSaver provider after 1 December. The Mercer KiwiSaver scheme offers primarily active fund management, diversification and enhanced responsible investing, and many New Zealanders choose us for those values. We will continue to offer our strong KiwiSaver product to New Zealanders.

How do I know if the investment option is right for me?

Mercer offers seven different investment options. You can contribute to one option or choose two or more – whichever suits you best. Each investment option is designed to suit different investment objectives and strategies. 

There are usually four factors that you need to take into account when you are making your investment choice decision. 

These generally include consideration of:

• your financial objectives,
• your investment timeframe,
• your attitude to risk and return,and
• your attitude to negative returns.

With Mercer you can change where all or a portion of your balance and contributions are invested at any time at no extra cost. But, remember the fees you pay will vary depending on the investment option you invest in.

We recommend changes be made only where your goals or personal circumstances have changed.

Mercer’s financial advice team are here to help and it is free. Call us on 0508 637 237.

Will my Mercer KiwiSaver fees increase?

No. We’re confident that what we deliver is great value for money and we have been recognised for delivering value for money by SuperRatings for 7 consecutive years.

Over the last two years we have reduced the administration fee and removed it for members younger than 18 and members with balances lower than $1,000. We have also reduced the Conservative fund fee by 19%.

Find more about our fees and other benefits here