Simplicity is one of New Zealand’s most distinctive KiwiSaver providers — a not-for-profit that offers passive index funds, some of the lowest fees in the market, and donates 15% of its management revenue to charity. Since launching in 2016, it has grown to become one of the larger independent providers in NZ, with billions of dollars under management.
This review covers everything you need to know about Simplicity KiwiSaver: their funds, fees, performance, ethical stance, and who they are best suited to.
Disclosure: MoneyBalance does not have a commercial relationship with Simplicity. This review is based on publicly available information. Always verify fees, fund details, and performance figures directly with Simplicity before making a decision.
For a comparison across all providers, see Best KiwiSaver Providers NZ (2026).
Simplicity at a Glance
| Detail | Simplicity |
|---|---|
| Type | Not-for-profit company |
| Founded | 2016 |
| Structure | Passive index funds |
| Funds offered | 6 (Cash, Conservative, Balanced, Growth, and more) |
| Management fee | 0.10%–0.31% depending on fund |
| Member fee | $30/year |
| FUM (approx) | $4+ billion (2026) |
| Supervisor | Public Trust |
| Charitable giving | 15% of management revenue to NZ charities |
| Regulated by | Financial Markets Authority (FMA) |
Simplicity’s KiwiSaver Funds
Simplicity offers a focused range of index funds. All are passively managed — meaning they track global and NZ market indices rather than relying on active stock picking.
Fund range
| Fund | Approx growth/defensive split | Management fee | Best suited to |
|---|---|---|---|
| Cash | ~0% / 100% | 0.10% | Very short horizon, capital preservation |
| Conservative | ~15% / 85% | 0.10% | Near retirement, under 5 years |
| Balanced | ~50% / 50% | 0.31% | Medium horizon, moderate risk tolerance |
| Growth | ~80% / 20% | 0.31% | Long horizon, 15+ years |
| NZ Share | ~100% / 0% | 0.10% | NZ equity exposure, sophisticated investors |
| Global Share | ~100% / 0% | 0.10% | Global equity exposure, sophisticated investors |
Fees and allocations are approximate. Verify current details at simplicity.kiwi.
The Growth fund is the most widely chosen for working-age members under 50. The NZ Share and Global Share funds are specialist options for investors who want concentrated single-asset-class exposure — they are not typical KiwiSaver funds and carry higher concentration risk.
Simplicity’s Fees — The Main Selling Point
Simplicity’s fee structure is consistently among the lowest in New Zealand:
- Management fee: 0.31% per annum on Growth and Balanced funds; 0.10% on Cash, Conservative, NZ Share, and Global Share funds
- Member fee: $30 per year (fixed, regardless of balance)
How this compares:
On a $50,000 balance in the Growth fund:
- Simplicity: $155 management fee + $30 member fee = $185/year (0.37% effective)
- ANZ Growth: ~$425 management fee + $24 member fee = $449/year (0.90% effective)
- ASB Growth: ~$440 management fee + $30 member fee = $470/year (0.94% effective)
On a $150,000 balance in the Growth fund:
- Simplicity: $465 management fee + $30 member fee = $495/year (0.33% effective)
- ANZ Growth: ~$1,275 management fee + $24 = $1,299/year (0.87% effective)
The advantage of Simplicity’s low percentage fee grows larger as your balance grows — at high balances, the annual saving versus ANZ or ASB can exceed $800/year.
Small balance consideration: the $30 annual member fee is relatively high for very small balances. On a $2,000 balance, the effective annual fee including the member fee is around 1.81% — significantly higher than the headline 0.31%. At balances under $5,000, providers with no member fee (Milford, Westpac) may be cheaper overall. Simplicity is most cost-effective at balances above $15,000.
Simplicity’s Performance
As a passive index provider, Simplicity’s returns reflect the markets they track — rather than a fund manager’s skill in stock selection.
Simplicity Growth Fund — estimated 5-year annualised returns (to April 2026):
| Time period | Approx return (p.a., net of fees) |
|---|---|
| 1 year | ~9.8% |
| 3 years | ~8.2% |
| 5 years | ~9.3% |
| 10 years | ~9.7% (since inception) |
These figures are indicative only. Verify current performance at simplicity.kiwi and sorted.org.nz. Past performance does not guarantee future returns.
Key context: Simplicity’s Growth fund has tracked close to — and in some periods ahead of — the average active growth fund in NZ, after fees. This is consistent with global evidence that low-cost passive funds frequently outperform active funds over the long term, particularly after fees are accounted for.
The caveat: passive funds by definition cannot outperform their benchmark index. Active managers like Milford have, in certain periods, meaningfully outperformed passive benchmarks — though whether this continues is uncertain.
Ethical and Responsible Investing at Simplicity
Simplicity excludes a range of investments from their funds as standard:
Excluded sectors (as of 2026):
- Manufacturers of controversial weapons (cluster munitions, landmines, nuclear, biological, chemical weapons)
- Tobacco producers
- Companies deriving significant revenue from fossil fuel extraction
- Companies involved in gambling above a certain revenue threshold
Simplicity also votes their shares on environmental and social governance issues, and publishes their voting record.
Charitable giving: Simplicity donates 15% of management revenue to New Zealand charities. In recent years this has amounted to several million dollars annually. Charities include mental health, conservation, and social services organisations.
For members seeking stronger ethical screening: Pathfinder applies more rigorous ESG screening and impact-focused investing. Simplicity’s exclusion list is meaningful but less comprehensive than dedicated ethical providers. See Pathfinder KiwiSaver Review and Ethical KiwiSaver Funds NZ.
What Simplicity Invests In
Simplicity’s Growth fund invests in a globally diversified mix of index funds:
- NZ and global shares via low-cost index funds (primarily Vanguard and similar passive vehicles)
- NZ and global bonds for the defensive component
- Currency hedging applied to reduce NZD volatility on international holdings
The underlying indices tracked include the NZX 50 (NZ shares), MSCI World (global developed market shares), and global bond indices. This means a Simplicity member has indirect exposure to hundreds of companies across NZ, Australia, the US, Europe, and Asia-Pacific.
Simplicity’s Digital Experience
Simplicity offers an online portal and mobile app that allows members to:
- Check their balance and transaction history
- Change their fund type
- Make voluntary contributions by bank transfer
- Update personal details and PIR rate
The interface is functional and clean, though less polished than some newer digital-first providers like Kernel and Koura. Customer support is available via email and phone — they do not have physical branches.
Pros and Cons
Pros
- Very low fees — 0.31% management fee on Growth is among the lowest for a diversified fund in NZ
- Passive/index structure — transparent, low-cost, and historically competitive with active alternatives after fees
- Not-for-profit — profits returned to members via lower fees; 15% of revenue donated to NZ charities
- Ethical screening — meaningful exclusions including fossil fuels and weapons
- Simple fund range — not overwhelming; easier to choose
- Strong track record since 2016
Cons
- $30 annual member fee — disproportionately high for very small balances (under $10,000)
- No active management — if you believe skilled active managers can outperform (as Milford has historically shown), Simplicity’s passive approach will never beat its benchmark
- No physical branches — everything is online; may not suit members who prefer in-person service
- Limited fund variety — no specialised sector funds or lifecycle options
- No life stages / target date funds — you manage fund type changes yourself as you age
Who Is Simplicity Best Suited To?
Simplicity is an excellent choice if you:
- Have a balance over $15,000 and want the lowest possible fees
- Are comfortable with passive investing and do not want to pay for active management
- Value ethical credentials without needing the most rigorous ESG screening
- Are happy to manage everything online
- Are building long-term retirement savings (time horizon 10+ years)
Simplicity may not be the best fit if you:
- Have a very small balance (under $5,000) — the $30 member fee is relatively expensive
- Want active management with the potential to outperform the market
- Need physical branch access
- Want the most rigorous ethical screening (consider Pathfinder instead)
- Are approaching retirement and want a provider with active drawdown strategy support
How to Join Simplicity
Joining Simplicity takes around 10 minutes online at simplicity.kiwi:
- Select your fund type (most working-age members choose Growth)
- Complete the online application — you will need your IRD number
- Simplicity notifies IRD and initiates the transfer from your current provider
- Your balance transfers within 2–4 weeks; future employer contributions redirect automatically
There are no joining fees, no exit fees from your old provider, and no tax events triggered by switching.
Frequently Asked Questions
Is Simplicity KiwiSaver safe?
Yes. Simplicity is regulated by the Financial Markets Authority (FMA) and is a licensed KiwiSaver scheme under the Financial Markets Conduct Act 2013. Member assets are held by an independent supervisor (Public Trust), separately from Simplicity’s own assets. If Simplicity were to fail, your KiwiSaver savings would be protected.
How does Simplicity make money if it’s not-for-profit?
Simplicity is structured as a not-for-profit company, meaning it does not pay dividends to shareholders. It generates revenue through management fees, retains enough to cover costs, and donates 15% of revenue to charity. The not-for-profit structure means there is no pressure to maximise profit margins — which supports the low-fee model.
Is Simplicity’s performance good?
Simplicity’s Growth fund has consistently delivered competitive returns relative to its peers, particularly after fees. It does not aim to beat the market — it aims to match it cheaply. Over 10 years, this approach has generally served members well compared to higher-fee active competitors.
Can I change funds within Simplicity?
Yes — log in to your Simplicity account, navigate to your fund, and select a different option. Changes typically take a few business days. There is no fee for switching funds.
Does Simplicity offer a KiwiSaver calculator?
Simplicity has a basic calculator on their website. For more sophisticated projections, see the KiwiSaver retirement calculator at MoneyBalance or sorted.org.nz.
What happens if I switch to Simplicity and then want to switch away?
You can switch away at any time — there are no lock-in periods or exit fees. Your balance transfers to the new provider within 2–4 weeks.
Our Assessment
Simplicity is one of the strongest default choices for NZ KiwiSaver members who want low fees, a passive investment approach, and a provider that aligns with broadly ethical values. For balances above $15,000 in a growth fund, it is difficult to beat on cost.
The main competitors to consider are:
- Kernel — similar passive approach, comparable or lower fees, slightly more modern digital experience; the $60/year member fee (waived under $5,000) makes the fee comparison nuanced at different balance levels
- Milford — significantly higher fees but a strong long-term active performance track record; worth considering if you believe active management adds value
- Pathfinder — stronger ethical screening if ESG credentials are a priority
This is general information only and does not constitute financial advice. Speak with a licensed financial adviser for personalised guidance — find one via the FMA’s adviser register or sorted.org.nz.