How KiwiSaver fees work, and why they matter
Every KiwiSaver fund charges fees, and because they come out of your balance automatically, many people never look at them. Over a working life, the difference between funds can compound into a meaningful amount, so fees are worth understanding.
The fees you are paying
Most KiwiSaver funds charge an annual management fee set as a percentage of your balance, covering investment management and administration. Some providers also charge a fixed membership fee, although many have removed these in recent years. Both are deducted from your balance automatically, so you never see a bill.
Why small differences compound
A fee is charged every year on your whole balance, and your balance is designed to grow for decades. A difference that looks small in any single year is applied again and again on a growing amount, which is why fee differences between funds compound over a working life.
Cheapest is not automatically best
Fees are one factor, not the whole picture. Funds differ in what they invest in, how they are managed, and the category of risk they target. A useful question is whether you are getting value for what you pay, not simply whether the number is the lowest available.
Where to find what you are paying
Every fund publishes its fees in its product disclosure statement and quarterly fund updates, and the Smart Investor tool on the Sorted website lets you compare funds side by side. Your annual KiwiSaver statement also shows the fees you actually paid in dollars.
This article is general information, not personalised financial advice. If you would like a review that includes how your fees compare, book a consultation with a Renver adviser.