Question 1

What is a typical KiwiSaver fee?

Accepted Answer

KiwiSaver fees vary by provider and fund type. Typical total annual fees range from around 0.25% for a low-cost index fund to over 1% for an actively managed fund. Fees include management fees, administration fees, and sometimes performance fees.

Question 2

How do KiwiSaver fees compound over time?

Accepted Answer

Fees are deducted from your balance each year, which means you earn returns on a slightly smaller amount. Over decades, even a 0.5% difference in fees can cost you tens of thousands of dollars at retirement because you lose not only the fee itself but also the future growth that money would have generated.

Question 3

Can I switch to a lower-fee KiwiSaver fund?

Accepted Answer

Yes, you can switch your KiwiSaver fund or provider at any time. Simply contact your new provider and they'll handle the transfer. There's no cost to switch, and your balance transfers in full. Consider switching if you're paying above-average fees for a similar risk profile.

Year	Balance	Contribution	Growth	Fees	Net change
0	$50,000	—	—	—	—
1	$56,180	$3,000	$3,500	-$530	$6,180
5	$84,837	$3,000	$5,392	-$800	$7,802
10	$131,457	$3,000	$8,471	-$1,240	$10,441
15	$193,845	$3,000	$12,591	-$1,829	$13,972
20	$277,335	$3,000	$18,105	-$2,616	$18,698
25	$389,063	$3,000	$25,483	-$3,670	$25,022
30final	$538,580	$3,000	$35,357	-$5,081	$33,486