Stubbs on attack with fee calculator

New low-fee KiwiSaver provider Simplicity has launched a calculator on its website that is designed to allow members of other KiwiSaver schemes to check how much they are paying in fees.

“Many KiwiSaver managers obscure the fees they charge, leaving their members thinking the only cost they pay is an annual membership or administration fee. That's often less than 20% of the real cost,” founder Sam Stubbs said.

He was angry that some providers had chosen to wait another year to start disclosing their fees in dollar terms. He said default providers in particular had an obligation to be open about what they charged.

Providers have until 2018 to meet the new disclosure requirements. Some had argued they needed time to make the required system changes.