A Deloitte study that compares Australian, NZ and UK pension funds has found KiwiSaver remains a no-scale but low-fee destination.
The 2024 Deloitte Australia pension fund fees benchmarking report shows size appears to have little influence on costs across schemes analysed in all three jurisdictions.
According to the report: “Increased scale as defined by Funds Under Management (FUM) was observed to have a weak relationship with a reduction in total fees paid by the member within the Australian and UK peer groups.
“Due to the lower average fees and significantly lower FUM that characterises the New Zealand peer group, no meaningful benefits of scale are observed compared to the other systems.”
On average, KiwiSaver has lower default fees than both the Australian and UK pension schemes covered in the study....
Read the full article on investmentnews.co.nz