Low fee Simplicity picked as one of the default KiwiSaver providers

Author
Newstalk ZB,
Publish Date
Fri, 14 May 2021, 7:22PM
(Photo / Getty)
(Photo / Getty)

Low fee Simplicity picked as one of the default KiwiSaver providers

Author
Newstalk ZB,
Publish Date
Fri, 14 May 2021, 7:22PM

The Government has announced a major shake-up in the KiwiSaver default provider appointments with five providers not being reappointed.

There are currently nine default providers but this shrinks to six providers under a new seven-year contract with the government.

People are allocated to a default KiwiSaver fund when they are automatically enrolled through starting a new job and don't choose their own fund.

The newly appointed providers are Bank of New Zealand, Booster, BT Funds Management (Westpac), Kiwi Wealth, Simplicity and Smartshares (NZX).

Simplicity co-founder Sam Stubbs told Heather du Plessis-Allan it will increase their membership by about 25 percent.

"Being called a default provider, people basically trust you."

He said they are a not-for-profit provider with low fees, which made them appealing to the Government - and their fees will be even lower now. 

Stubbs said that people who stay in default funds will be reallocated to other default providers, but they will be contacted first. 

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