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ANZ vs Simplicity KiwiSaver NZ: Bank vs Low-Cost Index Fees and Returns

Updated

ANZ and Simplicity sit at opposite ends of the NZ KiwiSaver market: one is a large bank with a full-service fee structure, the other a not-for-profit index fund provider with a 0.23% growth fund fee. For Simplicity’s full fund range, fees and features, see our Simplicity KiwiSaver review; this page sets the two side by side, as one of our KiwiSaver head-to-head comparisons. Every major provider in one table is in compare KiwiSaver providers.

Quick Comparison: ANZ vs Simplicity

Feature ANZ Simplicity
Investment approach Not stated in ANZ’s fund updates we checked Mostly passive index
Structure Commercial bank Not-for-profit
Default provider (2021) No Yes
Growth fund fee ~0.95% 0.23%
Growth fund 5-yr return (to 30 Jun 2026, after fees and tax) 5.29% p.a. 7.23% p.a.
Admin fee No No
Ethical fund No separately branded ethical fund (standard funds RIAA-certified; the OneAnswer scheme’s Select International Share Fund adds ESG measures) No separate fund: Simplicity says all its funds are ethically invested, with exclusions such as fossil fuels, weapons and gambling
Banking app integration Yes (ANZ goMoney) No
Profits Shareholders Back to members + charity

The Fee Difference in Dollar Terms

ANZ’s growth fund charges approximately 0.95% per year (total fund charges in its fund update for the quarter to 30 June 2026; 0.98% is the maximum in its fee schedule). Simplicity charges 0.23% (from 1 October 2026). That’s a fee gap of 0.72 percentage points.

Balance ANZ fee (~0.95%) Simplicity fee (0.23%) Annual fee difference
$30,000 $285 $69 $216
$60,000 $570 $138 $432
$100,000 $950 $230 $720
$200,000 $1,900 $460 $1,440
$500,000 $4,750 $1,150 $3,600

At $200,000, ANZ’s growth fund costs $1,440 a year more in fees than Simplicity’s.

Performance after fees

5-year after-fee, after-tax returns to 30 June 2026 (source: Sorted Smart Investor):

  • ANZ Growth: 5.29% p.a.
  • Simplicity Growth: 7.23% p.a.

The gap is approximately 1.9 percentage points a year after fees, larger than the 0.72-point fee gap, so fees explain only part of it. How active and passive funds compare over time is covered in our passive index KiwiSaver funds guide.

If those 5-year rates repeated for 20 years (past returns don’t predict future ones), $100,000 would grow to:

  • ~$280,000 at ANZ’s 5.29% p.a.
  • ~$404,000 at Simplicity’s 7.23% p.a.
  • a difference of ~$124,000

Why ANZ Has So Many Members

ANZ is one of New Zealand’s largest KiwiSaver providers, partly for structural reasons:

  1. Auto-enrolment history: Before the 2021 default review, ANZ received a large share of default enrolments.
  2. Banking relationship: Millions of New Zealanders bank with ANZ.
  3. One-app access: KiwiSaver is visible alongside everyday banking in ANZ goMoney.

Features and Limitations

Providers are listed alphabetically.

ANZ features:

  • KiwiSaver visible in the ANZ banking app (goMoney)
  • Broader fund range, including OneAnswer specialist funds
  • Branch network
  • RIAA responsible-investment certification on standard funds (baseline exclusions)

ANZ limitations:

  • Growth fund fee of ~0.95%
  • 5-year growth return of 5.29% a year after fees and tax, to 30 June 2026
  • No separately branded ethical fund in the ANZ KiwiSaver Scheme; not a default provider

Simplicity features:

  • Flat 0.23% fee, no member fee
  • 5-year growth return of 7.23% a year after fees and tax, to 30 June 2026
  • Not-for-profit structure; default provider

Simplicity limitations:

  • Mostly passive, so its funds aim to track their indices rather than outperform them
  • Fewer fund types; no branches; separate portal from your bank
  • No separate ethical fund: the same exclusions (Simplicity lists fossil fuels, weapons and gambling among them) apply to all its funds

Booster’s SRI range and Pathfinder offer dedicated ethical options (see how ethical KiwiSaver providers compare). You can switch KiwiSaver provider at any time, though your old provider may charge a transfer fee; see our switching KiwiSaver providers guide for the process.

Other Providers’ Returns

Growth fund returns for other providers over the same period are in our KiwiSaver fund returns tables.

Where to check the latest data

Rates, fees and returns change often. Before deciding, check current figures yourself:

  • Sorted Smart Investor: compares fees, returns and risk levels of KiwiSaver and managed funds.
  • Disclose register: holds each fund's product disclosure statement and quarterly fund updates.
  • The provider's latest fund update: gives the fund's current fees, returns and holdings.

Frequently Asked Questions

Is Simplicity safer than ANZ? Both are KiwiSaver schemes subject to the same KiwiSaver rules and member protections. Simplicity’s not-for-profit structure doesn’t change the regulatory oversight.

What happens to a KiwiSaver balance when a member changes provider? IRD says the transfer takes about 2 weeks. Your accumulated funds move across, and the date you first joined KiwiSaver and any first-home withdrawal you have made are passed to the new provider.

Does Simplicity integrate with a bank app? No. Simplicity accounts are managed through Simplicity’s own online dashboard, not a banking app.

How do other providers compare with ANZ? Over the 5 years to 30 June 2026 (Sorted Smart Investor), Generate, Simplicity, ASB, BNZ and Milford growth funds all returned more after fees and tax than ANZ’s. See our KiwiSaver fund returns tables.