'Impartial advice' a default requirement

It has completed a review of the default scheme, which started last year, and issued a Cabinet paper in response.

"This [education and advice] requirement should reduce the percentage of fund members who are inappropriately in a conservative fund," the paper said.

It said the new disclosure requirements would also make it easier for KiwiSaver members to make an active choice.

But members in default schemes won’t be put into “life stages” funds, as had been suggested, and the mandate will be kept for default KiwiSaver providers to manage funds conservatively, with 15% to 25% in growth assets.