"Why is 5-year KiwiSaver return the best comparison window?"

"5 years is long enough to capture a full market cycle (including at least one significant correction) and recent enough to reflect current management and fees. One-year returns are too noisy; since-inception returns may cover different fee structures or fund managers."

"Which KiwiSaver providers have the best 5-year growth fund returns?"

"Over consistent 5-year periods, Milford's Active Growth, Booster's High Growth, and Simplicity's Growth have been among the top after-fee performers. Rankings shift — check current data at Sorted.org.nz for the most recent standardised comparison."

"How much does a 1% higher annual return make over 5 years?"

"On a $100,000 balance, 1% higher annual return produces approximately $5,000 more over 5 years before compounding. Over 30 years, the same 1% difference compounds to over $100,000 on that starting balance — which is why selecting the right fund based on long-term returns matters."

"Should I switch KiwiSaver providers based on 5-year returns?"

"5-year returns are a useful input, but not the only one. Consider fees (which compound over decades), fund type suitability, and whether the performance reflects manager skill or luck. Switching costs are low — but switching based purely on past returns is often a mistake."

KiwiSaver 5-Year Returns NZ — The Best Comparison Window

Comparing KiwiSaver returns is easy to get wrong. One-year returns are too noisy. Since-inception returns include too many structural changes. The 5-year return window hits the sweet spot — long enough to include a market cycle, recent enough to reflect current fund management and fees. Here’s how to use it.

Why 5-Year Returns?

The FMA and consumer guides like Sorted.org.nz emphasise 5-year returns for good reason:

Comparison period	Problem
1 year	Too short — dominated by recent market events (e.g., 2022 selloff, 2023 recovery distorts comparison)
3 years	Better, but still includes significant noise and may not capture a full cycle
5 years	Includes at least one meaningful market event; recent enough to reflect current strategy
10 years	More reliable but may reflect outdated fee structures and investment strategies
Since inception	Penalises newer funds with shorter track records; complicated by changing strategy

For most KiwiSaver comparisons — especially when choosing a provider — 5-year after-fee returns in the same fund category is the right starting point.

The 5-Year Window (2020–2025)

The 5-year window to end 2025 captures:

2020: COVID crash (Feb–March) and rapid recovery
2021: Strong bull market across growth assets
2022: Rate-rise selloff — shares and bonds both fell
2023–2025: Recovery and new highs

This is a reasonably representative cycle — it includes both a sharp fall and a sharp recovery, unlike the unusually smooth 2013–2018 period. A fund that looks good over this 5-year window has demonstrated it can manage through volatility, not just ride a bull market.

Approximate 5-Year Returns by Fund Type (to end 2025)

Illustrative after-fee, pre-tax returns for the 5-year period to end 2025:

Fund type	Approx. 5-year return (p.a.)
Growth / aggressive	6–10% p.a.
Balanced	5–8% p.a.
Conservative	2–5% p.a.

These are illustrative ranges. Actual returns vary significantly by provider. Source: Sorted.org.nz KiwiSaver comparison, provider PDS. Past returns do not guarantee future performance.

How to Compare 5-Year Returns Fairly

Use the same fund category

A growth fund’s 5-year return cannot be compared to a conservative fund’s return — the risk profile is completely different. Compare growth to growth, balanced to balanced.

Use after-fee returns

Most published return figures are after management fees. Confirm this before comparing — some older comparisons quote gross returns that overstate the benefit.

Adjust for tax (PIR)

Returns in KiwiSaver are taxed at your PIR. Published returns are typically pre-tax (before your individual PIR). A 28% PIR member receives less net return than a 17.5% PIR member from the same fund. Use this as a tiebreaker when choosing between similar funds — lower fees matter more than ever at higher tax rates.

Be cautious about short-term outperformance

A provider that ranked first over the past 5 years may not rank first over the next 5. Research consistently shows return rankings rotate — last decade’s winner often underperforms next decade. Use 5-year returns as a minimum threshold, not a guarantee.

What 5-Year Returns Tell You (and Don’t)

Tell you:

Whether the fund delivered competitive risk-adjusted returns through a genuine market cycle
Whether active management (if applicable) added value vs peers
Whether fees are eating into returns disproportionately

Don’t tell you:

Future performance
Whether the fund’s strategy is changing
Whether the fund manager who drove past performance is still there

The most defensible approach is using 5-year returns as a screening tool — eliminate clearly underperforming funds — and then base your final choice on fees, fund composition, and provider stability.

Using Sorted to Find 5-Year Returns

The most accessible tool for NZ KiwiSaver 5-year return comparisons is Sorted.org.nz → KiwiSaver Fund Finder.

Steps:

Go to sorted.org.nz and navigate to the KiwiSaver fund finder
Filter by fund type (e.g., growth)
Sort by 5-year return
Cross-reference with total annual fund charge (the all-in fee)

This gives a quick view of which providers are leading and lagging within each category.

5-Year Returns and Fees Together

A fund returning 9% over 5 years with 1.0% fees earns you 8% net. A fund returning 8.5% over 5 years with 0.3% fees earns you 8.2% net.

The higher-returning fund appears better — but it’s not after fees. Always compare after-fee returns, and then check whether additional fees are being deducted on top of the published return.

For a 35-year-old with $50,000 in KiwiSaver, the difference between 8.0% and 8.2% net annual return compounds to roughly $10,000+ over 20 years.