Westpac NZ is reducing fees on its Westpac KiwiSaver Scheme funds, delivering significant savings for more than 380,000 members.
As well as removing its annual $12 administration fee, the bank is cutting a range of fund charges by up to 39%.
BT Funds Management NZ manages the Westpac KiwiSaver Scheme. It was re-appointed as one of six default providers earlier this month following a seven-yearly Government review.
Westpac NZ Acting CEO Simon Power says the reductions will help Westpac KiwiSaver Scheme members grow their KiwiSaver balances.
“These changes will provide real savings for all members, regardless of their fund balance or stage in life. Whether they’re saving up for retirement or a first home, we’re helping them reach their goals faster.
“We last cut our Westpac KiwiSaver Scheme fees in December 2019 and we’re pleased to follow this up with another significant reduction for members.
“Removing the annual administration fee will have a particularly positive effect on members with low balances.
“Annual fees on a $20,000 balance will reduce from $130 to $80 for our Conservative Fund, $158 to $100 for our Balanced fund and $172 to $110 for our Growth fund.”
Mr Power says the changes offer all Westpac KiwiSaver Scheme members great value, including those in the new Default Balanced Fund.
The fee changes on existing funds will take effect by the end of September. The new Default Balanced Fund will open to members in December.
Members will be notified directly of the changes in the coming months.
New fund fees for the Westpac KiwiSaver Scheme
Current fund charges
New fund charges
Default Fund (current default fund)
Default Balanced Fund (new fund)
The annual $12 administration fee will also be removed for all members.