KiwiSaver Fees Calculator | The True Cost of High Fees
Fees might seem small—just 0.5% here, 1.5% there. But over 30-40 years, these percentages translate to tens of thousands of dollars less in your retirement fund. Our fees calculator shows you exactly how much different fee levels will cost you over your investing lifetime, helping you make smarter KiwiSaver choices.
Interactive Fees Calculator
Calculator component will be rendered here
This interactive calculator compares two funds with different fee levels to show the real impact on your retirement balance.
Calculator Features:
- • Starting balance input
- • Annual contribution amount
- • Time until retirement (years)
- • Fund A fee percentage
- • Fund B fee percentage
- • Expected gross return rate
- • Side-by-side comparison chart
- • Total fees paid calculation
- • Difference in final balances highlighted
Understanding KiwiSaver Fees
KiwiSaver providers charge various types of fees. Understanding each type helps you evaluate the true cost of a fund.
Annual Management Fee
The largest and most important fee. Charged as a percentage of your total balance annually (e.g., 0.50% or 1.25%). This is deducted from your returns before they're credited to your account.
Example: On a $50,000 balance with 0.80% management fee, you pay $400 per year. As your balance grows, so does the dollar amount of fees.
Performance Fees
Some actively managed funds charge additional fees when they beat a benchmark index. Typically 10-20% of returns above the benchmark.
Example: If the fund returns 10% and the benchmark is 7%, you might pay a 15% performance fee on the 3% outperformance, adding 0.45% to your total fees.
Administration/Membership Fees
Fixed annual fees (e.g., $30-$50 per year) for account administration. Impact smaller balances more significantly than larger ones.
Example: A $30 admin fee represents 0.3% on a $10,000 balance but only 0.03% on a $100,000 balance.
Other Costs
Includes trading costs, buy-sell spreads, and underlying investment fund expenses. Usually included in the total annual fee disclosure.
Note: Look for "total annual fund charges" in fund disclosures—this includes most hidden costs.
The Long-Term Impact of Fees
Small fee differences compound dramatically over time. Here's a real-world comparison showing the impact of different fee levels.
30-Year Comparison
Starting balance: $20,000 | Annual contribution: $5,000 | Gross return: 7% p.a.
| Fee Level | Annual Fee % | Final Balance | Total Fees Paid | vs Low Fee |
|---|---|---|---|---|
| Ultra Low | 0.30% | $523,000 | $34,000 | - |
| Low | 0.60% | $495,000 | $67,000 | -$28,000 |
| Medium | 1.00% | $456,000 | $108,000 | -$67,000 |
| High | 1.50% | $416,000 | $152,000 | -$107,000 |
The Cost of High Fees:
A fund with 1.5% fees costs you $107,000 more than a fund with 0.3% fees over 30 years—even with identical investment performance. That's the equivalent of losing more than 21 years of contributions to fees.
High Fee vs Low Fee Funds: A Real Comparison
Let's compare two actual fund scenarios to see how fees impact different situations and time horizons.
Low Fee Fund Example
Provider: Simplicity Growth Fund
Annual Fee: 0.31%
Admin Fee: $30/year
Fund Type: Growth (passive index)
10-Year Return: 9.2% p.a.
Net Return: ~8.89% p.a.
$50,000 over 20 years:
Final balance: ~$244,000
Fees paid: ~$13,000
High Fee Fund Example
Provider: Typical Bank Growth Fund
Annual Fee: 1.25%
Admin Fee: $36/year
Fund Type: Growth (actively managed)
10-Year Return: 9.0% p.a.
Net Return: ~7.75% p.a.
$50,000 over 20 years:
Final balance: ~$212,000
Fees paid: ~$45,000
The Verdict:
Despite similar gross returns, the low-fee fund delivers $32,000 more after 20 years. The high-fee fund charged $32,000 more in fees, essentially erasing that growth.
Using the 4% withdrawal rule, that's an extra $1,280 per year in retirement income—enough for a nice holiday annually.
How to Find and Compare Fees
Fee information is publicly available, but you need to know where to look and what to look for.
Where to Find Fee Information
1. Fund Fact Sheets
Every KiwiSaver provider publishes quarterly fund fact sheets on their website. These include the "Total Annual Fund Charges" which captures most fees. Look for a document titled "Fund Update" or "Quarterly Report."
2. Product Disclosure Statement (PDS)
The official legal document outlining all fees and charges. More detailed than fact sheets. Search for "[Provider Name] KiwiSaver PDS" online.
3. Sorted.org.nz Smart Investor
Government-funded independent resource with fee comparison tools. Allows side-by-side comparison of all KiwiSaver funds.
4. Annual Member Statements
Your annual statement shows exactly how much you paid in fees in dollar terms over the past year.
5. Comparison Tools (like ours)
Use our KiwiSaver comparison tool to view fees across all providers and fund types in one place.
What to Look For:
- • Total Annual Fund Charges: This is the most important number—it includes management fees and most other costs
- • Performance Fees: Check if there are additional fees for outperformance
- • Admin/Membership Fees: Fixed dollar amounts charged annually
- • Switching Fees: Some providers charge when you change fund types or leave
- • Buy/Sell Spreads: Costs when money enters or exits the fund
When Do Fees Matter Most?
While fees always matter, their impact varies based on your situation. Understanding when to prioritize fee reduction helps you make smarter decisions.
Fees Matter MOST When:
- ✓You're young (20s-40s): Decades of compounding means fees have maximum impact
- ✓You have a large balance: On $100k+, even 0.3% difference equals $300+/year
- ✓Funds have similar returns: When performance is comparable, fees are the tiebreaker
- ✓You're in passive index funds: These track the same indices, so fees are the main differentiator
- ✓Long time to retirement: 20+ years until you need the money
Fees Matter LESS When:
- ~Returns significantly differ: A fund returning 9% with 1% fees beats 7% with 0.3% fees
- ~You value active management: Some actively managed funds justify higher fees with superior returns
- ~Small balances ($<10k): A 1% difference equals less than $100/year initially
- ~Near retirement (65+): Fewer years for fees to compound
- ~Ethical investing priority: Some pay slightly higher fees for ESG/ethical funds aligned with values
The Golden Rule:
Always compare funds on net returns (returns after fees) rather than fees alone. A fund with 1% fees returning 9% net beats a fund with 0.3% fees returning 7% net. However, when net returns are similar, choose the lower-fee option every time.
Frequently Asked Questions
Are KiwiSaver fees tax-deductible?
No, KiwiSaver fees are not tax-deductible for individual members. They're automatically deducted from your investment returns before being credited to your account, so you never pay them directly.
How are fees deducted from my KiwiSaver?
Fees are deducted from your fund's unit price daily or monthly, depending on the provider. You won't see fees as a separate transaction—your returns are reported net of most fees. Check your annual statement to see the total dollar amount of fees paid.
What's a good fee level for a KiwiSaver fund?
For passive funds: 0.2-0.6% is excellent, 0.6-0.9% is acceptable. For active funds: 0.6-1.0% is good, 1.0-1.4% is typical. Anything above 1.5% should deliver exceptional returns to justify the cost. Conservative funds should generally have lower fees than growth funds.
Do I get charged fees if my balance goes down?
Yes, percentage-based fees are charged on your average balance regardless of whether the fund made or lost money. If your fund loses 10% in a year and charges 1% fees, you're down 11% total. This is why low fees are crucial—they reduce losses in bad years and maximize gains in good years.
Should I switch funds just to save 0.2% in fees?
If everything else is equal (similar fund type, similar historical returns), yes—0.2% saved over 30 years can mean $15,000-$30,000 more in retirement depending on your balance. Switching is free and takes about 2 weeks. However, also consider the fund's performance track record, not just fees. See our switching guide →
Find Low-Fee, High-Performance Funds
Compare all KiwiSaver funds to find the best combination of low fees and strong returns for your retirement.
Related Resources
Retirement Calculator
Project your retirement savings and see how contributions impact your final balance.
How to Choose a KiwiSaver Fund
Complete guide to selecting the right fund based on fees, performance, and risk.
Switching Funds Guide
Step-by-step guide to switching to a lower-fee KiwiSaver provider.
Common KiwiSaver Mistakes
Avoid costly errors including ignoring fees and choosing high-cost providers.