Learn » Updates » How much do I pay in fees?

How much do I pay in fees?


One of the biggest misconceptions in KiwiSaver is fees. People just don't realise how much they pay, how they are charged or where to find out how much they pay. Sadly some people don't even know who their provider is.

At Simplicity we are true to our name. We want you to understand everything there is to know about fees, because it's in your best interests. 

There are multiple layers of fees in KiwiSaver, which add up to a number known as the 'total expense ratio' or TER, some call it a 'management expense ratio' (MER).

The name isn't important. Rather it's the number you should care about. That's because this TER, or MER is calculated as a percentage of your annual balance. As your savings and investments grow, so does the fee earned by your provider. Over 30 years it can really add up. For example, a TER of 1.35% (the current average) means you pay $135 in fees if you have $10,000 saved, but $270 if you have $20,000. This adds up to the average KiwiSaver paying $55,000 in KiwiSaver fees over their lifetime.

At Simplicity, we only charge we what it costs -- which is half the industry average. We charge you $30 a year in membership fees, plus $3 for every $1,000 of your money we manage. The benefits add up to an average of $65,000 more when you retire. It's like getting a 20% pay rise on retirement.

Once you're a member of our KiwiSaver, you can see very clearly on your account what you pay in fees in real dollar terms, year on year, and since joining. We want you to have total transparency, clarity and understanding, so at the end of the day you are richer. Whether that's at age 65 when you are eligible to access your funds, or earlier if you are using the money to buy a first time home, it can make a huge difference.


We call it the Simplicity Difference.






Ask Artie