Takapuna-based Pie Funds will next week launch a low-cost KiwiSaver scheme, which co-founder Mike Taylor says should add pressure on the big players to lower their fees.

Pie Funds said its low-cost, actively managed JUNO KiwiSaver would offer zero fees for children and for balances under $5000, and low fees for everyone else.

The scheme will have a monthly fee structure - along the same subscription-based lines as that employed by web-based entertainment platforms Netflix or Spotify.

"The combination of low fees, active management and genuine member engagement is innovative and will disrupt the established industry," Taylor said.

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"Most KiwiSaver schemes charge fees as a percentage of your total investment, so for every dollar your investment grows, so does the amount you pay in fees," he said.

Pie Funds said the scheme could mean savings of $400,000 or more for an 18-year old with an annual salary of $35,000 and a KiwiSaver balance of $1000, investing until the age of 65.

Those with a KiwiSaver balance of $25,000 to $49,000 would be charged a monthly fee of $15, for an annual total of $180.

For balances of $100,000 to $1 million, the fee would be $50 a month or $600 a year.

Taylor said customers would be able to see exactly what they were paying all the way through the stages of their KiwiSaver investment.

He noted that industry KiwiSaver fees were coming down.

"Our pricing is unique though because it's based on a subscription model, which is different from the rest of the industry," he told the Herald.

"Overall, I think that players like us entering the market will force the banks - who control 85 per cent of KiwiSaver - to act on fees," Taylor said.

Taylor said customers would be able to see exactly what they were paying all the way through the stages of their KiwiSaver investment with JUNO, which was co-founded by JUNO magazine publisher Jacqueline Taylor.

The couple's launch of JUNO follows the establishment of another low-cost plan, Simplicity, which was set up by Sam Stubbs in 2016 as a non-profit organisation for KiwiSaver investment.

Taylor said the JUNO KiwiSaver product differs from Simplicity's model in as much as funds will be managed by Pie Funds whereas Simplicity outsources its funds management.

Pie Funds Management began as a startup in 2007 and now has $800 million under management.