Mercer KiwiSaver Scheme Review
Published 15 October 2026 · Written by the ValueHub team · Reviewed by Steve Baron
Mercer KiwiSaver Scheme Review
Mercer runs 7 KiwiSaver funds open to new members, covering a moderate spread of risk levels. At 30 June 2026 they held $2.65 billion for 54,817 investors.
Charges across the open funds run from 0.33 per cent to 0.93 per cent.
Over five years the Sustainable High Growth Fund returned 5.89 per cent a year while the Responsible Conservative Fund returned 2.18 per cent a year, which is the gap between the top and the bottom of what you can choose from.
This review does three things. It sets out what each scheme actually contains. It puts every fund’s fee, risk indicator and return in one place, taken from the Government’s register. And it answers the question that matters most — whether what you get is worth what you pay.
How We Researched This Guide
Every number below is read from our own copy of the Government’s Disclose Register, which is the statutory source managers file against. It carries seven open funds, all reported as at 30 June 2026.
We also checked the rules that sit behind every KiwiSaver account — contribution rates, the government contribution and default provider appointments — against Inland Revenue and the Ministry of Business, Innovation and Employment.
We are not recommending a move in either direction. The point of the exercise is to put the verified numbers side by side, so the decision rests on figures rather than on a brochure.
ValueHub's Trusted Providers
We've researched the providers below — here are our picks for this category.
Simplicity is a nonprofit KiwiSaver and investment fund manager charging 0.25% p.a. across all six KiwiSaver funds. 100% owned by the Simplicity Foundation, a registered charity. Over 190,000 members. Seven rounds of fee cuts since launch in 2016. Fifteen percent of management fees donated to NZ charities. Founded by Sam Stubbs (ex-Tower Investments CEO, Goldman Sachs).
The Quick Summary (60-Second Version)
Here is the short version before the detail.
- Mercer offers 14 open funds across two separate schemes.
- Annual fund charges range from 0.33 per cent to 0.93 per cent.
- The cheapest option is the Cash Fund at 0.33 per cent.
- The largest fund by value is the Responsible Conservative Fund, with $798.8 million invested.
- The strongest five-year record in the range belongs to the Shares Fund, at 6.53 per cent a year.
- The weakest five-year record is the Conservative Fund, at 2.17 per cent a year.
- The funds hold $3.00 billion in total across 64,556 investors.
What You Pay, and What You Get For It
Mercer charges an annual fund charge, and there are no separate membership, contribution, establishment, switching or termination fees recorded for its KiwiSaver scheme. The charge comes out of the fund’s returns rather than being billed to you, which is why most members never see it leave the account.
The 2 open schemes are worth separating, because the scheme you are in decides what you can choose and what you pay.
| Scheme | Funds | Charge range | Status |
|---|---|---|---|
| Mercer KiwiSaver Scheme | 7 | 0.33% to 0.93% | Open |
| New Zealand Defence Force KiwiSaver Scheme | 7 | 0.46% to 0.88% | Open |
It helps to see the charge in dollars. On a $50,000 balance, the lowest charge here, 0.33 per cent, is about $165 a year, and the highest, 0.93 per cent, is about $465. On $100,000, those figures double.
What the Charge Costs at Different Balances
A fund charge is a percentage of your balance, so the dollar figure moves as your savings grow. The table below shows the cheapest fund, the dearest fund, and a middle one from the range, and what each charges at three balances. This is the certain part of the equation: the fee is charged whether the fund rises or falls.
| Fund | Charge | On $10,000 | On $50,000 | On $100,000 |
|---|---|---|---|---|
| Cash Fund | 0.33% | $33 | $165 | $330 |
| Sustainable Balanced Fund | 0.77% | $77 | $385 | $770 |
| Sustainable Shares Fund | 0.93% | $93 | $465 | $930 |
What makes a fund charge costly is its repetition. It is deducted every year from the whole balance, so the money it removes cannot itself earn a return in later years.
The Kinds of Fund in This Range
The register groups every fund by type, and the type tells you more about the risk than the name does. Mercer spans 5 of those groups, which determines how much choice you actually have.
| Type | Funds | Risk | Charge range | What it means |
|---|---|---|---|---|
| Defensive | 1 | 2 | 0.33% | Weighted to cash and bonds, so it is the steadiest option in a range. |
| Conservative | 1 | 3 | 0.49% | Holds mostly income assets with a small share of shares, and is built for a shorter horizon. |
| Balanced | 2 | 4 | 0.67% to 0.77% | Splits income and growth assets roughly evenly, which is the middle of most ranges. |
| Growth | 1 | 4 | 0.86% | Holds mostly shares and property, so it swings more in the short term and is built for a longer horizon. |
| Aggressive | 2 | 4 to 5 | 0.88% to 0.93% | Holds almost entirely growth assets, which makes it the most volatile option in a range. |
The risk indicator runs from 1 to 7. It measures how much the fund’s value has moved in the past, not how good it is. A 6 or 7 is not a warning; it is a statement that the fund is expected to fall further in a bad year, and it belongs in a portfolio you will not need to touch for a long time.
Mercer KiwiSaver Scheme — the funds
| Fund | Type | Risk | Fee | 1yr | 5yr | Fund size |
|---|---|---|---|---|---|---|
| Cash Fund | Defensive | 2 | 0.33% | 1.97% | 2.44% | $33m |
| Responsible Conservative Fund | Conservative | 3 | 0.49% | 5.50% | 2.18% | $799m |
| Sustainable Moderate Fund | Balanced | 4 | 0.67% | 7.63% | 3.03% | $244m |
| Sustainable Balanced Fund | Balanced | 4 | 0.77% | 10.78% | 4.01% | $703m |
| Sustainable Growth Fund | Growth | 4 | 0.86% | 13.61% | 5.06% | $315m |
| Sustainable High Growth Fund | Aggressive | 4 | 0.88% | 16.32% | 5.89% | $473m |
| Sustainable Shares Fund | Aggressive | 5 | 0.93% | 17.72% | 5.77% | $82m |
Charges across the open funds run from 0.33 per cent to 0.93 per cent. The strongest five-year figure is the Sustainable High Growth Fund at 5.89 per cent a year, and the weakest is the Responsible Conservative Fund at 2.18 per cent a year.
New Zealand Defence Force KiwiSaver Scheme — the funds
| Fund | Type | Risk | Fee | 1yr | 5yr | Fund size |
|---|---|---|---|---|---|---|
| Cash Fund | Defensive | 2 | 0.46% | 1.87% | 2.34% | $3m |
| Conservative Fund | Conservative | 3 | 0.69% | 5.71% | 2.17% | $14m |
| Moderate Fund | Balanced | 4 | 0.71% | 8.90% | 3.01% | $9m |
| Balanced Fund | Balanced | 4 | 0.72% | 12.95% | 4.00% | $132m |
| Growth Fund | Growth | 4 | 0.79% | 16.07% | 5.07% | $63m |
| High Growth Fund | Aggressive | 5 | 0.86% | 19.53% | 6.09% | $82m |
| Shares Fund | Aggressive | 5 | 0.88% | 20.83% | 6.53% | $48m |
Charges across the open funds run from 0.33 per cent to 0.93 per cent. The strongest five-year figure is the Sustainable High Growth Fund at 5.89 per cent a year, and the weakest is the Responsible Conservative Fund at 2.18 per cent a year.
What the Funds Actually Hold
Alongside the fees, the register discloses what share of each fund sits in growth assets — shares and property — and what share sits in income assets such as bonds and cash. That split explains more about a fund’s behaviour than its name does, because it is what determines how far it rises and falls.
| Fund | Growth assets | Income assets | Risk |
|---|---|---|---|
| Responsible Conservative Fund | 19% | 81% | 3 |
| Sustainable Moderate Fund | 39% | 61% | 4 |
| Sustainable Balanced Fund | 59% | 41% | 4 |
| Sustainable Growth Fund | 77% | 23% | 4 |
| Sustainable High Growth Fund | 91% | 9% | 4 |
| Sustainable Shares Fund | 99% | 1% | 5 |
The spread runs from 0% growth assets in the Cash Fund to 99% in the Sustainable Shares Fund. The conservative end will scarcely move in a poor year; the aggressive end will fall sharply with share markets and rebound just as sharply. Which suits you depends on when you need the money, not on which has performed better lately.
Reading the Returns
Every return shown is net of the fund charge and after tax — the figure a member actually experiences. Every return shown is net of the fund charge and after tax. The strongest five-year average here is the Sustainable High Growth Fund at 5.89 per cent a year, against a range of 2.18 to 5.89 per cent across the open funds.
Compare the columns side by side. One-year figures across these funds span 1.97 to 17.72 per cent, and five-year averages 2.18 to 5.89 per cent. The gap between the two is a reminder that twelve favourable months are not evidence of skill, whereas a five-year record is far harder to produce by accident.
The lesson in that gap is worth carrying into any fund choice: judge on the longest period available, and treat a short history as a reason for caution rather than a virtue.
Below are all the returns the register publishes, fund by fund. Weight the longer columns most heavily — they are the ones a manager cannot produce by luck.
| Fund | 1 year | 3 years | 5 years | 10 years | Since inception |
|---|---|---|---|---|---|
| Cash Fund | 1.97% | 3.26% | 2.44% | 1.81% | 1.81% |
| Responsible Conservative Fund | 5.50% | 4.40% | 2.18% | 3.03% | 3.27% |
| Sustainable Moderate Fund | 7.63% | 5.36% | 3.03% | 3.95% | 4.38% |
| Sustainable Balanced Fund | 10.78% | 6.86% | 4.01% | 4.95% | 5.99% |
| Sustainable Growth Fund | 13.61% | 8.33% | 5.06% | 6.64% | 7.55% |
| Sustainable High Growth Fund | 16.32% | 9.58% | 5.89% | 7.77% | 8.92% |
| Sustainable Shares Fund | 17.72% | 10.49% | 5.77% | 8.44% | 9.80% |
Where Mercer Sits Against the Alternatives
On entry cost, Mercer is the 11th cheapest of the 29 managers in our KiwiSaver table, with its cheapest fund charging 0.33 per cent. The cheapest manager charges 0.03 per cent and the dearest starts at 4.26 per cent.
| Manager | Charge range | Open funds |
|---|---|---|
| InvestNow | 0.03% to 1.38% | 45 |
| Sharesies | 0.09% to 1.49% | 11 |
| SuperLife | 0.20% to 1.26% | 50 |
| Milford | 0.20% to 1.15% | 6 |
| Kernel | 0.25% to 0.45% | 25 |
| Simplicity | 0.24% | 6 |
Cost is only one side of the ledger. The other is whether the return justifies it, which is what the five-year column is for. Neither number is predictive on its own, and a stretch that suits shares will always make the share-heavy funds look better than they are.
What You Put In, and What You Get Back
The contribution rules are set by the Government and apply to whoever manages your money, so they are the same here as anywhere else. What changes between schemes is what happens to the money once it arrives, which is why the charge matters more as the balance grows.
The default employee and employer rate is 3.5 per cent from 1 April 2026, and it rises to 4 per cent on 1 April 2028. On a $70,000 salary, 3.5 per cent is $2,450 a year from you, matched by your employer, so about $4,900 a year goes into the account before any return.
The Government adds 25 cents for every dollar you contribute, up to a maximum of $260.72 a year. To receive the full amount, you must contribute at least $1,042.86 of your own money between 1 July and 30 June, and employer contributions do not count towards that threshold. If your taxable income is above $180,000 a year, you do not qualify.
Once the money is in, the fund charge applies to the whole balance rather than to each contribution. On a $50,000 balance, the lowest charge here, 0.33 per cent, is about $165 a year, and the highest, 0.93 per cent, is about $465. On $100,000, those figures double. That is the number worth weighing against the returns, because it is charged whether the fund rises or falls.
Questions You Might Have
Which Mercer scheme am I in?
Your KiwiSaver statement, or the online account you use to manage your savings, will show the scheme name. If it does not say which one, ask Mercer directly. It is worth thirty seconds, because the schemes can offer different funds and different charges.
How much will I pay?
Charges across the open funds run from 0.33 per cent to 0.93 per cent. It comes out of the fund’s returns, not your bank account, so you will not see a separate bill.
Is Mercer a default provider?
No. The appointed default providers are BNZ, Booster, Westpac (through BT Funds Management), Fisher Funds, Simplicity and Smartshares, with appointments running to December 2028. Mercer is a scheme you choose deliberately.
Can I change funds without changing provider?
Usually yes. Most schemes let you move between their own funds, or set a different split, through your online account at no cost, and the change takes effect without affecting your membership or your employer contributions. You only need to switch provider if the scheme itself is the problem.
Do I have to pick just one fund?
No. With 14 open funds, you can split your balance across several, allowing you to take more risk with part of your savings and less with the rest. The trade-off is that you have to keep track of the split yourself.
What happens to a closed fund?
If you already hold a fund that has closed to new members, you keep it and continue to pay the charge shown. Closing a fund stops new money coming in; it does not force existing members out, and it does not change your balance.
How much do I need to contribute to get the full government contribution?
You need to put in at least $1,042.86 of your own money between 1 July and 30 June to receive the maximum of $260.72. The government adds 25 cents for every dollar you contribute, and employer contributions do not count towards your $1,042.86. If your taxable income is above $180,000 a year, you do not qualify.
How much will I pay at the default contribution rate?
The default employee and employer rate rose from 3 per cent to 3.5 per cent on 1 April 2026, and it rises again to 4 per cent on 1 April 2028. On a $70,000 salary, 3.5 per cent is $2,450 a year from you, matched by your employer. You can choose 4, 6, 8 or 10 per cent instead.
Does switching to or from Mercer cost anything?
No. Mercer records no membership, contribution, establishment, switching or termination fees, and switching between KiwiSaver providers does not attract a fee in practice. You apply to the new provider, who arranges the transfer.
What Matters Most
Mercer is a provider with a wide range of funds. The fee table above shows the current charges for each fund. The funds are numerous enough that you need to choose deliberately.
- The Cash Fund is the cheapest way in at 0.33 per cent.
- The strongest five-year record is the Shares Fund at 6.53 per cent a year, and it carries the risk that produced it.
- Check which scheme you are in before anything else, because it decides the funds and the charge.
The ValueHub Team built this site because finding clear, unbiased financial information in New Zealand was harder than it should be. Every guide is based on real research — we compare the actual fees, terms, and fine print so you don't have to. Our tip: shop around every year, read the policy docs, and never assume loyalty gets you the best deal.— The ValueHub Team
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