mattwnz: Where are you getting the 1.3% figure from? If you use the sorted website, and only have the $1000 kick start in it, and make no other contributions, and you tell it that you will retire in 20 years time, that $1000+ is the fees on a growth fund that  it spits out. It is less for conservative or cash funds, as there is less work involved.

Kiwibanks website for the fees. 1.2% management fee + approx .1% in admin fees as already discussed.  As you seem to disagree with the entire investment community and beleive a conservative fund will do better, the fees would actually be lower.

Read the assumptions of the sorted calculator.

Tax credits worth the maximum of $521 are included at the end of each member credit year which runs from 1 July to 30 June. (Note: To receive the total tax credit you must be a KiwiSaver member for the entire member credit year.)

My reading is the sorted calculator is adding $521 per year for 20 years to the calclulation, hence the high fees.