How much are your KiwiSaver fees really costing you?

A 1% annual fee difference on a $50,000 balance costs more than $130,000 over 30 years when compounded at 7% gross return. New Zealanders collectively paid $868.5 million in KiwiSaver fees in the year to March 2025. The industry average fee is 0.82%, but low-cost providers like Simplicity and Kernel charge around 0.25% — a difference that adds up to tens of thousands of dollars over a career.

The average total annual fund charge (TAFC) across all 388+ KiwiSaver funds is 0.82%, with a median of 0.77%. Fees range from 0.03% (InvestNow Foundation US 500) to over 3% for specialist funds. Low-cost growth funds from Simplicity and Kernel sit around 0.25%. Bank-offered funds (ANZ, ASB, BNZ, Westpac) typically range from 0.55% to 0.93%. Active managers like Milford and Generate charge 1.05% to 1.10%.

Yes — you can switch KiwiSaver providers at any time, for free. Your entire balance transfers automatically. The process typically takes 2–4 weeks. You do not lose your employer contributions, government contributions, or first home withdrawal eligibility by switching. Simply apply to your new provider online — they handle the transfer for you.

Not necessarily — what matters is net return after fees. A 1.05% active fund that consistently delivers 9% gross beats a 0.25% passive fund at 7% gross. Always compare net returns (after fees, before tax) over 5 and 10 years at the same risk level. Research consistently shows most active funds underperform their benchmark after fees long-term — but some NZ managers have genuine track records of outperformance. Check actual performance at Smart Investor →

Your fee (Total Annual Fund Charge or TAFC) is listed in your provider's Product Disclosure Statement, on their website under fund information, and in your annual KiwiSaver statement. You can also compare fees across all 388+ NZ funds at the FMA's Smart Investor tool →