Kiwisaver figures provide warning for UK

UK personal accounts likely to struggle to hit target charges based on figures from similar New Zealand pension schemes

Personal accounts will struggle to hit their target charges of 0.3% to 0.5%, based on figures from New Zealand's similar Kiwisaver pension scheme. Under the New Zealand system, savers who make no pension choice are allocated a Kiwisaver account administered by one of six providers using a carousel method for choosing accounts. Charges on these default accounts, which are passive investments or cash, average around 0.5%. But in addition to the annual fund management charge, administration expenses are subsidised using New Zealand taxpayers' money. The government pays providers NZ$40 ...