A new KiwiSaver provider launched today promising low fees, no profits and a simple product range that it says equals anything else on offer.
It is called Simplicity KiwiSaver and is aiming at fees at around half the level of the current industry average.
Former Tower Investment chief executive Sam Stubbs. Photo: Screenshot RNZ
The provider is headed by a former head of Tower Investments, Sam Stubbs.
He said the established KiwiSaver industry had been taking consumers for granted and for a high-price ride.
"I think one of the problems that the local providers have is that they are very locked into high-profit models...they demand increasing profits all the time," he said.
Mr Stubbs said it would offer conservative, balanced and growth funds based on index tracking, with the US-based Vanguard fund manager looking after the international investments.
He said the ethos was no frills, low cost.
"So you strip-out very high profit margins and all the costs associated with expensive advertising, branches, shiny head offices," he said.