For years, I let my KiwiSaver sit with ANZ without giving it much thought. It was easy—the bank had set everything up when I started my first job, and I figured the big banks knew what they were doing. But after attending a financial literacy workshop last year, I realized I was leaving serious money on the table. The fees I was paying were quietly eating away at my retirement savings, and I had almost zero control over where my money was actually invested.
That’s when I discovered Kernel Wealth, and honestly, making the switch was one of the best financial decisions I’ve made.
Why I Left ANZ KiwiSaver
Don’t get me wrong—ANZ isn’t a terrible KiwiSaver provider. But here’s the thing: traditional bank KiwiSaver schemes like ANZ charge significantly higher fees than newer, digital-first providers. 
When I crunched the numbers, I was paying around 0.95% per year in fees with ANZ’s Growth Fund. That might not sound like much, but over 30 years of investing, those fees compound into tens of thousands of dollars that could have been growing in my account instead of going to fund management.
Beyond the fees, I was frustrated by the lack of control. ANZ offered me pre-packaged funds—Conservative, Balanced, Growth, etc.—but I couldn’t customize my investment mix. I wanted more exposure to international markets and specific sectors, but my only option was to accept their predetermined allocations.
Enter Kernel Wealth: A Game-Changer
Kernel Wealth is a modern, digital-first investment platform that launched their KiwiSaver offering in 2022. They’re all about low fees, transparency, and giving investors actual control over their money.
Here’s what makes Kernel different:
1. Ridiculously Low Fees
Kernel charges just 0.25% per year for most of their funds. That’s less than a quarter of what I was paying at ANZ. For their standard diversified funds (High Growth, Balanced, Cash Plus), there are no account fees, no transaction fees, and no hidden costs. Just a simple, transparent 0.25% annual management fee.
Let me put this in perspective: On a $50,000 balance, I was paying ANZ around $475 per year. With Kernel, I’m paying just $125. That’s a $350 annual saving that stays in my account, compounding year after year.
2. Build Your Own KiwiSaver
This is where Kernel absolutely shines. Unlike ANZ’s one-size-fits-all approach, Kernel lets you create a custom KiwiSaver portfolio from their range of 27+ index funds.
After doing my research, I built my own mix:
- 30% S&P 500 Fund – Access to America’s 500 largest companies
- 30% Global 100 Fund – The world’s biggest companies outside the US
- 30% High Growth Fund – Kernel’s diversified aggressive fund
- 10% Emerging Markets Fund – Exposure to faster-growing overseas economies
This level of customization simply wasn’t possible with ANZ. I can adjust these allocations anytime through the app, and I’m not locked into predetermined fund structures that might not align with my goals or risk tolerance. Some may say I have far too much exposure here to US stocks, but that’s the risk I’m willing to take. Based on past performance the US has done well, but there is no guarantee this will continue in the next 20 years. Kernel Wealth allows you to change up your funds as and when required.
3. Index Fund Philosophy
Kernel uses passive index investing, which means they track market indexes rather than trying to beat them through active management. Research consistently shows that passive funds outperform most active funds over the long term, primarily because they charge lower fees and avoid the costly mistakes that active managers often make.
ANZ uses a mix of active management, which sounds sophisticated but typically means higher fees without better returns.
The Switching Process: Easier Than I Expected
I’ll be honest—I procrastinated on switching for months because I assumed it would be complicated and time-consuming. Turns out, it’s ridiculously simple.
Here’s exactly what I did:
Step 1: Signed up with Kernel (5-10 minutes)
I went to kernelwealth.co.nz and created an account. The sign-up process was straightforward—I needed:
- My email address
- My IRD number
- My residential address
- Driver’s license or passport for verification.
Step 2: Chose my funds (15 minutes)
I spent some time exploring their fund options and reading about each one. Kernel provides clear, jargon-free descriptions of what each fund invests in, the expected volatility, and who it’s suitable for. Once I decided on my custom allocation, I selected the funds and set my percentages.
This is where I started hunting on Reddit for guidance on what others had used. The general view was a mix of Global 100, S&P500, High Growth and Emerging Markets. Kernel Wealth offers hedged or unhedged options against the NZD. Given the long term and inability to access any of my funds until 65 – I have already used my first home deposit – I opted for unhedged but if in doubt speak to a family member who knows more about investing or better yet, speak to an approved financial advisor.
Step 3: Initiated the transfer
This is the magic part—Kernel handles everything. I didn’t need to contact ANZ, fill out paper forms, or navigate bureaucracy. Kernel automatically transferred my existing balance from ANZ to my new Kernel account. ANZ will send you a letter in the mail but no action is required.
Step 4: Waited
The transfer took about three weeks from start to finish. During this time, my contributions from my employer automatically started going to Kernel, and my old balance was being transferred. Kernel kept me updated via email throughout the process, but I was left in the dark for a few days when my Kiwisaver disappeared from my ANZ app.
That’s it. Genuinely that simple.
Step 5: Peace of Mind vs Australian Superannuation
You may have seen over the Tasman in Australia, Superannuation is big business and lots of fraud takes place with some people losing their entire life savings through no fault of their own. Here in New Zealand we have protections in place so that your Kiwisaver can’t be used to finance the investment fund owners Lamborghini or Sydney mansion.
This was my main concern when finally moving my Kiwisaver from ANZ – a reputable bank and one of the biggest Kiwisaver providers in the country. Family members had heard horror stories over in Australia and this was a big factor in putting me off touching my Kiwisaver however I am pleased to know our funds have more protections in place to prevent such life changing events happening here.
What About Other KiwiSaver Alternatives?
While I’m thrilled with Kernel, I did research several other providers before making my decision. Here are the main alternatives worth considering:
Simplicity
Simplicity is a nonprofit KiwiSaver scheme with fees around 0.31% per year. They’re ethically focused, avoiding investments in fossil fuels, weapons, and tobacco. Their funds are excellent and well-regarded, but they don’t offer the same level of customization as Kernel—you choose from Conservative, Balanced, or Growth funds rather than building your own portfolio.
Best for: Ethically-minded investors who want simplicity and don’t need customization.
SuperLife
SuperLife (owned by NZX) offers 42+ funds you can mix and match to build a custom portfolio, similar to Kernel. Their fees range from 0.20% to 1.34% depending on the fund. They’ve been around longer than Kernel and have a solid track record.
Best for: Investors who want customization and don’t mind slightly higher fees than Kernel on some funds.
Milford
Milford is an actively managed provider with strong historical performance. They charge higher fees (around 0.80-1.20% annually) because they’re trying to beat the market through active stock selection. They’ve won numerous awards and have proven they can deliver strong returns.
Best for: Investors who believe active management is worth the extra cost and want a hands-off approach.
InvestNow
InvestNow’s KiwiSaver scheme lets you choose from 36+ funds from 14 different fund managers. They offer excellent tax-efficient Foundation Series funds at 0.37% fees. Very flexible but the interface isn’t as polished as Kernel’s.
Best for: Investors who want maximum flexibility and don’t mind a slightly clunkier user experience.
The Kernel Experience: 6 Months In
I’ve been with Kernel for six months now, and I’m genuinely impressed. The app is clean, intuitive, and shows me exactly where my money is invested. I can see the breakdown of individual companies I own shares in through the index funds, which makes everything feel more tangible and real. Currently you can only access their app through a web browser, i.e. there is no app however I prefer this as it stops me looking at it every day going up and down – long term it will go up and checking it once a month is more impressive than daily like my Sharesies account.
The quarterly updates are insightful without being overwhelming and I like how I can see my total contributions rather than just one total figure like I had with ANZ, and I love that I can set up auto-invest to top up my own funds whenever I have extra cash – I’m also using S&P500, Global 100 – but I can withdraw funds here before 65 if needed.
The pros:
- Dramatically lower fees than ANZ
- Full control over my investment mix – up to 40 options to choose from
- Slick, modern website
- Transparent, easy-to-understand reporting
- Excellent customer service (Auckland-based team)
- No withdrawal fees when I eventually access my funds
The cons:
- If you invest over $25,000 in Kernel Invest (their non-KiwiSaver product), there’s a $60 annual account fee—though this doesn’t apply to KiwiSaver
- You need to be comfortable making your own investment decisions if using the custom option
- Newer provider, so less track record than established names
Should You Switch?
If you’re with a high-fee provider like ANZ, ASB, BNZ, or Westpac, I genuinely think you should consider switching. The fee difference compounds massively over decades, and you could literally have tens of thousands more at retirement by making this one change.
You should definitely switch if:
- You’re paying fees over 0.60% per year
- You want more control over your investments
- You’re comfortable with a digital-first platform
- You have 10+ years until retirement (to ride out market volatility)
You might want to stay put if:
- You prefer face-to-face advice and branch visits
- You’re within 5 years of retirement and in a conservative fund
- You’re genuinely happy with your current provider’s performance and fees
Key Takeaways
Switching is stupidly easy: You need your IRD number and about 10 minutes. Kernel handles the rest, and it takes roughly two weeks.
Fees matter enormously: The difference between 0.25% and 0.95% in fees is life-changing money over 30-40 years.
Customization is powerful: Building your own portfolio from index funds gives you much more control than predetermined Conservative/Balanced/Growth options.
You have options: Kernel, Simplicity, SuperLife, Milford, and InvestNow are all solid alternatives to the big banks, each with different strengths.
For me, Kernel was the perfect fit. Lower fees, full control, and a genuinely great user experience. If you’re still with a bank KiwiSaver and haven’t reviewed your options in years, seriously consider making the switch. Your future self will thank you.
Ready to make the move? Check out kernelwealth.co.nz to get started. And no, I’m not sponsored—I just wish someone had told me about this years ago.
Disclaimer: This article reflects personal experience and research. Before making investment decisions, consider your own financial situation and goals. Past performance doesn’t guarantee future returns.
