Simplicity welcomes fee transparency for KiwiSaver

Not-for-profit KiwiSaver provider welcomes move to show fees in dollar figures on KiwiSaver statements

Simplicity welcomes fee transparency for KiwiSaver

Simplicity has welcomed the announcement fund management fees will be shown in dollar figures for KiwiSaver customers, saying it’s about time Kiwis had the transparency on fees they deserve and now they’re going to get that.

Simplicity chief executive Sam Stubbs said the average Kiwi will still pay $54,700 in KiwiSaver fees over their lifetime, which is far more than the average person will spend on utilities such as power or mobile phones.

“There’s a very strong case for switching to a lower fee provider.

“It was shameful to see how the Bankers Association lobbied for this to be delayed, but I guess with their $5 billion dollars of profit last year it’s not hard to know why,” Stubbs said.

Simplicity donates 15% of its management fee to charity, stating “it’s the right thing to do, and what our members want.”

Last week, Simplicity announced it would donate $10,000 to the Auckland City Mission, $10,000 to The Young Enterprise Trust, and $10,000 for the Graham Dingle Foundation.

In an email to members last week, Simplicity said over the past 18 months, donations had grown to almost $175,000 p.a.

“When we have 10% market share in KiwiSaver, our donations should be over $10m p.a. We're working on a long-term donation strategy. We're taking the time to get it right, and will let you know when it's ready,” the email stated.