Published on 10/10/2016
Transfer rates from KiwiSaver providers are on the rise but the time it takes to switch hasn't.
According to Simplicity data, switch times range between four and 36 days with KiwiWealth taking the longest on average between 14-20 days and AMP and Mercer taking shortest period of time.
Simplicity's manager director Sam Stubbs has called for legislative change to make switch times faster and more consistent.
\"If you can transfer your term deposit in one day, and get a mortgage in two days, why does it take 30 days to transfer your KiwiSaver money. That seems to me to be particularly wrong,\" Stubbs said.
\"One major bank said, very early on, that switches would take a long time because they 'didn’t have the resources to process them'. Really? Perhaps they should dip into the profit they made last year, over a billion dollars, to move other peoples savings faster,\" he said.
We believe the industry should work together to give KiwiSavers confidence that switches happen quickly and transparently.
For more on this subject, have a look at this weekend's article published in The Sunday Star Times and Stuff here.