Know your KiwiSaver fees

Do you know how much you’re paying in KiwiSaver fees?

Fees are just one of the key elements to consider when looking for the right investment fund, of course – performance is also crucial and should be taken into consideration. Having said that, when you’re investing to earn solid returns and save for retirement, it’s important to make every dollar count.

Here are some key things to consider if you want to minimise your KiwiSaver fees and get the best returns possible.

 

Why fees are so important

All KiwiSaver providers will charge you fees for investment, management and administration costs. The amount can also vary greatly across different providers and fund types.

To give you a practical example, when analysing balanced funds, Canstar found a difference of $123 between the most and the least expensive fees. It might not seem a lot in the short term, but different fees can have an impact on your long-term returns, your saving strategy and – most importantly – your goals.

Types of fees & disclosure rules

Usually, the annual cost of a KiwiSaver fund is a combination of separate fees. These include:

  • Annual member fee
  • Management fee
  • Administration fee
  • Trustee fee
  • Expense fee.

So, how can you know for sure what fees are involved and how much you’re paying for them? All funds are required to fully disclose this information in their periodic disclosure statement, which can be found on your KiwiSaver scheme website. And of course, if you need help understanding the ins and outs of your fund, we’re here to help.

We can help with comparisons

When it comes to planning and working towards your retirement goals, ensuring that you’re getting the right value for your money (and earning a healthy compound interest) is crucial. That’s why taking the time to choose, review and compare KiwiSaver funds makes sense.

Obviously, a fund cannot be judged on fees alone, as the highest-fee fund can also be the one achieving the highest returns. But as you can imagine, that is not always the case. If you’d like to have a thorough understanding of what’s available out there, and how it relates to your needs, always feel free to contact us. We have the tools to help you make an informed decision about your investments.

For more helpful information, don’t miss our recent guide “Will your KiwiSaver meet your retirement needs?“.

An Adviser Disclosure Statement is available free and upon request.