What are the charges?
Two types of charges apply to all members:
These charges will affect your returns.
This is a flat fee of $1.50 a month (or $18 a year) for members aged 18 and over. It helps to pay for the day-to-day administration of your KiwiSaver account. It’s deducted from your KiwiSaver account every month. If you’re invested in more than one fund, this fee will be deducted from the fund with the highest balance in your OneAnswer KiwiSaver Scheme account.
There is no membership fee for members under 18.
You cannot claim further personal tax deductions on membership fees, because we include the amount of these fees when we calculate your share of the taxable income.
Annual fund charge
This is a percentage amount based on the fund (or funds) you’ve chosen to invest in. Importantly it pays for the investment management of that fund – that is the skills and expertise of our investment team who carefully manage the money you have invested. It also pays for the supervision of our scheme by an independent third-party, and our regular communications to you. The annual fund charge is calculated daily and will reduce a fund's unit price.
The current maximum annual fund charges are shown in the table, although the actual charge may vary each year because expenses vary. Although you won’t pay more than the maximum annual fund charge percentage listed, expenses can be carried forward and recovered in future years
Both your annual fund charge and your membership fee are on your statement. For more information see how we calculate the annual fund charge.
Update your prescribed investor rate (PIR) online
As the OneAnswer KiwiSaver Scheme is a Portfolio Investment Entity (PIE), we use your PIR to calculate how much tax to pay on your share of the OneAnswer KiwiSaver Scheme’s taxable income. We pay this tax for you from your KiwiSaver account by cancelling units in your KiwiSaver account equal to the value of the tax you need to pay.
In certain circumstances we receive tax refunds. When we do, we add units to your KiwiSaver account equal to the value of your share of the tax refund.
If you give us a PIR that is too high, you will not be able to claim a refund of overpaid tax from Inland Revenue.
If you give us a PIR that is too low, you may need to file a tax return and be responsible for paying any additional tax, penalties, and interest.
Therefore, to make sure you’re taxed at the right rate, it’s important to make sure we’re using the correct PIR for you. You can use the handy table below to determine your PIR and then update it online if needed.
An income year generally runs from 1 April of the previous year to 31 March of the current year.
Your IRD number
Before your PIR can be applied to your investments, you also need to tell us your IRD number. This must be provided to us within six weeks of opening a new investment in a fund. If you don’t, we’re required by law to close your account and refund the balance to you.
For investments opened before 1 April 2018, if we do not hold your IRD number your account will not be closed but the highest PIR of 28% will be applied.
What are my risks?
KiwiSaver is an investment. Like any investment, it involves taking some risk. The level of risk will vary depending on the fund your savings are invested in, as each fund is exposed to different levels and types of risk. You need to decide how these risks apply to your personal circumstances. In very general terms:
These (and other) risks may mean you get back less from your investment in the OneAnswer KiwiSaver Scheme than you hoped for, and it is also possible that you might not receive back the full amount you contributed to the OneAnswer KiwiSaver Scheme.
We decide which risks are significant by thinking about how likely the unwanted event is and what effect it might have if it happens.
There is no guarantee that the investment objectives of the funds will be achieved. See the guide and product disclosure statement for more information.
You should consider the information set out in the guide and product disclosure statement, and talk to a financial adviser if you need more information.
Understanding the risks
For the OneAnswer KiwiSaver Scheme, we believe that the most significant risks will usually fall into the following broad categories:
You should familiarise yourself with these risks which are explained in the guide and product disclosure statement and how they relate to the fund, or funds, you’re invested in.
All of our case studies are examples to help you understand how choices can affect KiwiSaver savings. The figures used are for illustration only and may not reflect actual returns.
The figures in our case studies:
“David & Nicole”:
The lump sum calculation assumes: