KiwiSaver fee revenue drops for the first time since 2007
It’s the first year since the start of KiwiSaver that total fees have not risen – the combined effect of lower default fund fees, reductions in management fees by larger providers, some providers removing fixed membership fees altogether and others not earning the same level of performance fees.
Administration fees charged this year were the lowest ever, $17.3 million – a 65.7% fall from last year’s $50.3 million and down 81.2% from their peak in the year to March 2019.
John Horner, FMA director markets, investors and reporting, says it’s an important milestone as the FMA has been encouraging providers to share economic benefits of scale with members.
“Reducing fees is a meaningful way to do this because members retain more in their balances to benefit from compounding returns, but value for money is not just about fees.
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