Simplicity Cuts KiwiSaver Fees For Seventh Time

Simplicity, the nonprofit default KiwiSaver manager, announced today that it was reducing its fees for its diversified KiwiSaver and Investment Funds from 0.25% to 0.24% per annum, effective 1 September 2025.

This is its seventh fee cut since starting in 2016, as it passes on the benefits of scale to its members.

The FMA reported that total KiwiSaver fees for managers were over $780 million to 31 March 2024, and Simplicity was critical of how high they were.

“As at 20 August, the average fee for $30,000 invested in a KiwiSaver growth fund was 1.05% per annum. Simplicity’s was 0.25% and is going even lower*” said Sam Stubbs, Managing Director of Simplicity.

“KiwiSaver is one of the most widely held investment products in a generation and is critical to many Kiwis’ wellbeing in retirement. But, in our opinion, too many managers are charging far too much relative to the value they deliver to their members,” he said.

Simplicity has almost 175,000 members and $9.0 billion of funds under management in its KiwiSaver and Investment Funds schemes. It donates 15% of its management fees to the Simplicity Foundation, which has given over $11 million to New Zealand charities to date.

Note:

* Fee comparisons are based on a market average fee sourced from Sorted Smart Investor based on $30,000 in diversified funds with a similar growth / income asset allocation as at 20 August 2025. Simplicity fee of 0.25% as at 20 August 2025. Simplicity NZ Ltd is the issuer of the Simplicity KiwiSaver Scheme. For a Product Disclosure Statement, please visit our website simplicity.kiwi. For more on our fees, go to simplicity.kiwi/fees.

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