Simplicity To Disrupt Finance Industry As New Default KiwiSaver Provider

Published: Fri 14 May 2021 09:32 AM
KiwiSaver Manager Simplicity has been awarded default status by the Government. The nonprofit will be one of six default managers from November 2021.
“This is a huge validation of a social enterprise which started less than five years ago,” says Sam Stubbs, co-founder of Simplicity.
“Default status means more scale, and an increased ability to disrupt the market. For example, expect to see fee reductions for all Simplicity members in the future. KiwiSaver managers made $539 million in fees last year. That’s over $10 million a week, and that’s just wrong,” he said.
“The more scale we have, the more pressure we can put on other providers to get their crazy fees down. We see ourselves as the cat among some very fat pigeons,” says Mr Stubbs.
Mr Stubbs emphasised that being a default provider would not diminish their advocacy.
“We will remain as focussed as ever on getting the financial industry to give ordinary hard working Kiwis a better deal. And we will be a shareholder activist in areas of diversity, executive pay and sustainability,” he said.
Simplicity was formed four years ago. The nonprofit has 19 staff, 63 volunteers and 61,000 members. It manages over $3 billion of funds and donates 15% of fees to charity. Total charitable donations are now over $2 million.
Simplicity won Consumer NZ’s ‘People's Choice’ award for KiwiSaver for 2020, and Canstar’s Customer Satisfaction award for the last two years. It has recently been awarded Morningstar’s Fund Manager of the Year: KiwiSaver Award for 2021.

Next in Business, Science, and Tech

Air New Zealand Employees Recognised With $1,000 Share Award
By: Air New Zealand
Bank Complaints On The Rise, Consumer NZ’s Survey Shows
By: Consumer NZ
Feds Applauds UK-Australia Free Trade Deal
By: Federated Farmers
New Zealanders Missing Out On Hundreds Of Millions In KiwiSaver Government Contributions
By: ASB Bank
GDP Climbs 1.6 Percent In March 2021 Quarter Following December Dip
By: Statistics New Zealand
Debt Serviceability Restrictions Added To Policy Toolkit
By: Reserve Bank
View as: DESKTOP | MOBILE © Scoop Media