As per an article by the NZ Herald, over 400,000 KiwiSaver members who are in default funds may have missed out on $1 billion over the last six years because they are in the wrong type of fund and are being over-taxed. This was based on a report by a group of nine financial advisers.
People are automatically put in one of nine default KiwiSaver funds when they switch or start a new job and do not decide for themselves which fund to be in.
An individual earning $40,000 a year could be potentially be $6000 worse off while someone on $60,000 a year could potentially be $8100 worse off.