KiwiSaver Fees Explained: The Complete Guide

Understanding KiwiSaver fees is crucial for maximizing your retirement savings. A seemingly small 1% difference in annual fees can cost you over $100,000 by retirement. This guide breaks down every fee type, shows you what you're actually paying, and helps you find the lowest-cost providers without sacrificing returns.

Last updated: October 2025 | Reading time: 12 minutes

💡 Key Takeaway

KiwiSaver fees range from 0.27% to over 1.5% annually. On a $100,000 balance:

• Low-fee provider (0.3%): $300/year
• Average provider (0.9%): $900/year
• High-fee provider (1.5%): $1,500/year

Over 40 years, this compounds to a $135,000+ difference in final retirement savings.

Types of KiwiSaver Fees

1. Management Fee (Annual Fund Charge)

Typical Range: 0.27% - 1.5% per year

The management fee (also called the annual fund charge) is the main ongoing cost you pay to your KiwiSaver provider. This fee covers fund management, investment research, administration, and provider overhead.

It's charged as a percentage of your total balance, so as your balance grows, the dollar amount you pay increases. For example:

Example with 0.9% management fee:

• $10,000 balance = $90/year
• $50,000 balance = $450/year
• $100,000 balance = $900/year
• $200,000 balance = $1,800/year

What's considered good? Aim for under 0.5% for passive funds, under 0.8% for actively managed funds.

2. Administration/Membership Fee

Typical Range: $0 - $48 per year (flat fee)

Some providers charge a fixed annual fee for administration, usually around $12-$48 per year. This covers account maintenance, reporting, and customer service.

Impact: This fee has less impact on large balances but significantly affects small accounts. For example:

• On a $1,000 balance, $36/year = 3.6% of your balance
• On a $100,000 balance, $36/year = 0.036% of your balance

Many low-fee providers (like Simplicity, Kernel) charge $0 admin fees.

3. Performance Fees (Success Fees)

Typical Range: 0% - 20% of returns above benchmark

Some active fund managers charge performance fees when they beat their benchmark. For example, Milford charges 10-20% of returns above the benchmark.

How it works:

If a fund returns 12% and the benchmark returns 8%:

• Outperformance = 4%
• Performance fee (20%) = 0.8% of your balance
• You keep 3.2% extra returns

Pros: You only pay when the fund performs well. Cons: Can be expensive in good years.

4. Other Fees to Watch For

Exit fees: Most providers don't charge exit fees, but always check before switching.
Buy-sell spreads: Small costs (0.05-0.3%) when your contributions are invested or withdrawals are made. Usually minimal impact.
Adviser fees: If you use a financial adviser, they may charge 1-2% of your balance annually. This is separate from provider fees.

Lowest-Fee KiwiSaver Providers (2025)

Provider	Total Fee	Admin Fee	Fund Type
Kernel	0.27%	$0	Passive
Simplicity	0.31%	$30/year	Passive
InvestNow SuperLife	0.35%	$0	Passive
Booster	0.74%	$0	Active/Passive
Generate	0.95%	$24/year	Active
Milford	0.99%*	$36/year	Active
ANZ / ASB / Westpac	1.10-1.25%	$0-$36	Active

* Milford charges performance fees on top of management fees (10-20% of returns above benchmark)

View all 30+ providers →

The Real Cost of Fees Over Time

Let's compare three scenarios over 40 years with $5,000 annual contributions and 6% gross returns:

Low-Fee Provider

$825,000

0.3% total fees

Total fees paid: $52,000

Average Provider

$742,000

0.9% total fees

Total fees paid: $142,000

High-Fee Provider

$690,000

1.3% total fees

Total fees paid: $202,000

Difference between lowest and highest: $135,000

That's enough to buy a new car, fund several years of travel, or leave an inheritance.

Calculate Your Fee Impact

How to Find What Fees You're Paying

1
Check Your Annual Statement
Your provider must send you an annual statement showing total fees paid. Look for "Total fees as % of balance."
2
Review Product Disclosure Statement (PDS)
Every provider publishes a PDS document listing all fees. Find it on their website under "Documents" or "Fund Information."
3
Use Our Comparison Tool
Compare fees across all 200+ funds in one place. Filter by fees, see total costs, and find lower-cost alternatives.

Common Questions About KiwiSaver Fees

Are higher fees worth it for better returns?

Not usually. Research shows that low-fee passive funds often outperform high-fee active funds after fees. While some active managers (like Milford) do beat the market, their higher fees eat into those gains. Always compare net returns after fees, not gross returns.

Can I negotiate KiwiSaver fees?

No. KiwiSaver fees are set at the fund level and can't be negotiated individually. However, you can switch to a lower-fee provider at any time for free.

Should I always choose the cheapest provider?

Not necessarily. Consider: 1) Net returns after fees (not just fees alone), 2) Investment approach (passive vs active), 3) Fund risk level, 4) Customer service quality, 5) Ethical/sustainable investing options. A fund with 0.7% fees and 9% returns beats one with 0.3% fees and 6% returns.

Do fees get deducted from my balance?

Yes. Fees are typically deducted from your returns before they're credited to your account. You won't see a separate transaction - your unit price already reflects fees. This is why it's important to compare net returns (after fees), not gross returns.

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