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Fees & Performance

Intermediate

KiwiSaver fees explained

11 min read

What are KiwiSaver fees?

A KiwiSaver fund’s total fee is the percentage of your balance charged each year for managing your money. Across the market it averages around 0.71% a year (FMA KiwiSaver Annual Report, 2025), down from about 1.10% in 2012. Within any fund type, though, providers charge very different amounts, and the gap is money out of your balance every year.

The fees you actually pay

Most fees are bundled into a single annual fund charge, shown as a percentage. Watch for three things: the total fund charge as a percentage and in dollars, any fixed membership fee charged as a flat amount, and whether the fund is actively managed or passive, which partly explains the cost.

What a fee gap costs in dollars

Balance0.50% a year1.00% a year1.50% a year
$20,000$100$200$300
$50,000$250$500$750
$100,000$500$1,000$1,500

Those are first-year figures. Because fees compound against you, the gap grows far larger over a working life. See how much KiwiSaver fees cost over 30 years.

How a fee gap compounds over time

Lower feeHigher feeToday30 yearsBalance
Illustrative only. Shows how two otherwise identical balances drift apart when one fund charges a higher annual fee, because the fee compounds against you each year. Not a forecast of any specific fund or return.

How to check and compare

Your annual statement shows your fees as a percentage and a dollar figure. Compare like with like, a fund against another of the same type. See the KiwiSaver fees comparison, and if a cheaper comparable fund exists, it may be worth switching.

Do not forget tax

Fees are one cost; the tax on your fund earnings is another. Make sure your PIR is right.

Compare KiwiSaver fees on Kāhu.

Frequently asked questions

What is a good KiwiSaver fee?

There is no single threshold, but the market average is around 0.71% a year (FMA, 2025). Compare within your fund type.

Where do I find what I am paying?

Your annual statement shows your fees as both a percentage and a dollar figure, required since 2018.

Do lower fees mean lower returns?

Not necessarily. Fees are a certain cost; returns are not guaranteed. Lower fees leave more of any return in your account.


Kāhu provides general information, not personalised financial advice. Kāhu is a KiwiSaver comparison and switching platform operated by Financial Advice NZ Limited, a licensed Financial Advice Provider (FSP1009051). The figures here are general and current as at June 2026. For advice on your situation, speak to a licensed financial adviser.

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