New Deloitte research has found KiwiSaver's median fees are now slightly lower than Australia's, despite the Australian superannuation system being around 35 times larger, reinforcing KiwiSaver's competitiveness on cost.
KiwiSaver's median total fee (0.77%) was slightly lower than Australia's (0.79%). This is despite operating at a fraction of the scale, with the Australian superannuation system being approximately 35 times larger.
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KiwiSaver remains competitively priced against much larger international peers
Greg Smith, Investment Specialist at Generate, commented that "Given KiwiSaver has grown to around NZ$138 billion while Australia's system exceeds AUD$4 trillion, these findings show New Zealand's retirement savings sector has delivered competitive pricing despite operating without the scale advantages available offshore."
He added, "There's a common perception that New Zealand investors pay more because we're a smaller market. This research challenges that view. KiwiSaver remains competitively priced against much larger international peers and, in aggregate, sits below Australia on median fees."