KiwiSaver provider Simplicity has recently been under fire due to their “All Greys” advertising campaign. In the campaign, Simplicity claimed that if you invest your KiwiSaver with them you will retire with 20% more compared to the average provider.
Now you may be thinking ‘Wow, now that sounds too good to be true. And you would be right. This claim has recently been deemed as misleading, deceptive and unsustained by The Financial Market Authority (FMA). Consequently, the advertisement has been ordered to be removed. The FMA drew came to this decision due to the large assumptions made in the campaign. The FMA believes that for Simplicity’s claim to be true then your investment timeframe would have to be at least 45 years and the fees for both it and other providers would have to stay at the current price for the duration. This was seen as unreasonable and unrealistic resulting in the campaign promoting a misleading message.
This situation is important for us investors to be aware of as it shows the significance of doing research into KiwiSaver providers and seeking reliable advice. Advertising can have a strong impact on our decision-making process but knowing that you should not rely on what you see on Instagram or hear on TV is key, especially when it comes to financial decisions.
There are plenty of trustworthy resources available online that can help lead you to make a good decision on how to invest your KiwiSaver money. However, sifting through information about over 30 providers and nearly 250 funds can be a time consuming and overwhelming process. We urge you not to be discouraged by this and resort to relying on advertisements to shape your decisions. Instead, reach out and ask for advice for a trusted professional.
Our team at National Capital specialises in all things KiwiSaver and we pride ourselves on giving trusted and reliable financial advice. Reach out to us with any questions we are more than happy to help you have #onelessmoneyworry.