New low-cost Kiwisaver scheme offers Netflix, Spotify-style subscription-fees

Long Lunch 25/07/2018
Photo: File.

A new KiwiSaver scheme launching next month will offer low-fees based on Netflix and Spotify pricing models.

JUNO, by Auckland-based Pie Funds, will go live on August 1 with a unique monthly fee structure. It’s free for under-18s and balances under $5,000, and has low fees for everyone else.

The directors of the scheme say it will leave more money in members’ pockets for their first home or retirement.

Co-founder Jacqueline Taylor, publisher of JUNO investing magazine, told RadioLIVE’s Wendyl Nissen that many Kiwis have no idea which KiwiSaver fund they are in, let alone the fees they are paying.

“I don’t people have really engaged with it to get excited about [Kiwisaver] and to see that this is an investment.

“And for many Kiwis investing is actually so far out of reach,” she said. “Kiwisaver is an opportunity for everybody to become an investor, and I absolutely love Kiwisaver and want to see people get excited about it and realise that a small portion of your income goes towards your retirement savings and is an investment.”

Ms Taylor says the scheme combines low fees with lifelong financial learning, offering free interactive information, tools and video, all in plain language.

Co-founder Mike Taylor from Pie Funds says most KiwiSaver schemes charge fees as a percentage of your total investment.

“So for every dollar your investment grows, so does the amount you pay in fees.”

He says the JUNO scheme could result in savings of $400,000 or more for an 18-year-old with an annual salary of $35,000 and a $1000 KiwiSaver balance, investing until the age of 65.

Listen to the full interview with Jacqueline Taylor above.

The Long Lunch with Wendyl Nissen, 12pm - 3pm on RadioLIVE and streaming live to the rova app on Android and iPhone.