KiwiSaver Fees: A 1% Difference Could Cost You $70,000 by Retirement

Most New Zealanders pick a KiwiSaver fund once and never look at it again. But the fee difference between a 0.30% passive index fund and a 1.30% actively managed fund is not 1% — it's compounded over decades.

On a $50,000 balance growing for 30 years at 7% returns, that 1% fee difference means $70,000+ less at retirement. That's a year of income lost to fees.

Compare your fund fees side by side →

What FMA Data Shows

The Financial Markets Authority (fma.govt.nz) requires all KiwiSaver providers to disclose fees in their fund updates. Fees range from 0.20% (Simplicity, SmartShares) to 1.50%+ (some boutique active funds). Research consistently shows that higher fees do not reliably predict higher after-fee returns over 10+ year periods in the NZ market.

How the Calculator Works

Enter your current KiwiSaver balance, salary, contribution rate (3%, 4%, 6%, 8%, or 10%), years until retirement, and expected return rate. Then enter two funds to compare — Fund A and Fund B with their annual percentage fee and any fixed dollar fee.

The tool shows:

  • Projected balance at retirement for each fund
  • Total fees paid over the period
  • Fee drag (what percentage of returns were consumed by fees)
  • The dollar difference between funds

Includes employer contribution (minimum 3%) and the government member tax credit (up to $521.43/year). Based on IRD KiwiSaver rules and FMA data, updated May 2026.

See how much your fund fees really cost →

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Originally published at https://tool.teamzlab.com?utm_source=blogger&utm_medium=article&utm_campaign=2026-05-kiwisaver-fees-comparison-calculator

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