Anger at $100 KiwiSaver transfer fee
Sam Arora is taking a stand over his KiwiSaver scheme provider’s decision to charge him $100 to leave.
Arora has his money invested with KiwiSaver provider SuperLife, but is considering shifting to rival provider Simplicity.
He’s outraged he’ll be charged a ‘‘transfer’’ fee, which will be deducted from his balance, if he leaves, and is speaking out about his dissatisfaction.
In a fiery email to SuperLife’s Michael Chamberlain, Arora said: ‘‘How can you even say that it’s fair to charge customers fees for leaving but not for joining?’’
Chamberlain defended the fee, saying SuperLife was one of the lowest-fee KiwiSaver providers, adding: ‘‘There’s a certain cost to bringing someone on board, and you can spread that over the life of their membership.’’
The same was not true when people left.
‘‘We believe that it is in the best interests of our members that we maintain lower management fees but have some transaction fees where there is additional work and we will not recover the cost of that work over time transfers,’’ he said.
There are other KiwiSaver providers who charge transfer fees, such as Aon New Zealand’s $35 fee, and the $30 of the Booster scheme.
But Arora said: ‘‘SuperLife charge the highest transfer fee among any other KiwiSaver provider in New Zealand.’’
He told Chamberlain: ‘‘You could put a $30 or something fee if customers leave within 12 months.
‘‘But what you are charging is completely ridiculous without any minimum term policy.
‘‘I have been with SuperLife for such as for around three years now. Surely, I qualify to be able to switch to another provider if I am not happy with SuperLife without being penalised.’’
Chamberlain said providers that did not charge exit fees were effectively making all their members pay through higher fees.
Simplicity founder Sam Stubbs said: ‘‘All entry and exit fees are very last century and, to our mind, not in the spirit of KiwiSaver.
‘‘Nor is it defendable that there is no entry fee, but an exit fee.
‘‘It’s obvious what the motivations are, however they are dressed up.’’