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Complacency costs – sitting on your hands costs big time on previously transferred pensions

Getting your UK pension to New Zealand probably seemed like mission at the time, so you don’t have a desire to revisit that pain again in a hurry. But there are two startling issues that should have everyone dusting off their New Zealand Scheme pension documents to see if they are getting a fair deal:

  1. Schemes being run by the same people are charging massively different costs across those schemes
  2. Sometimes getting exactly the same investments can cost 60% more in one scheme compared with another

Being involved in either of these situations is burning money, and burning money is totally unnecessary.

Same scheme operator milking more costs from one of their schemes when compared to their other

Bear with us on this one as there’s a little bit of math involved, so the story’s not as easy to tell. This is about one New Zealand company that has three pension schemes that have received UK pension transfers into them over the years (two of the schemes are no longer accepting new members and one is).
Now, there were a few rule changes that came about before they set up their third and newest scheme (the only one that is open to new members). The changes required them to be more upfront about the fees that were charged. Well what a surprise, the newly opened scheme fees are heaps lower. How much lower? Well the balanced funds in the old schemes the annual charges are 2.25% a year for the balanced funds in the new scheme the fees are 1.5% a year. That’s a whole 33% lower.

Get a new car for free – easy as

The average Joe or Jane has $120,000 invested in balanced funds in the old schemes mentioned above. If they switched into the new scheme alone they would, over the course of 15 years, save the cost of a small car ($23,500). So that’s the cost of complacency. Not to mention there are often even better deals in the market.


Same investment – massive difference in the cost of making it

If a loaf of Tip-Top bread cost $3.04 at one supermarket and $1.82 at another you’d much rather pay $1.82 right. Exactly the same coast conscious approach should apply to investments
Again, let’s look at a specific example to understand this. Someone wants to invest in a Milford balanced fund (that’s the bread), Milford don’t have their own superannuation scheme (supermarket), so you’ll have to buy their funds through someone elses superannuation scheme (supermarket).
So we went shopping to look at the costs of exactly the same Milford funds funds at two different superannuation schemes. You would think that the costs wouldn’t be that different? Guess again… there was a huge difference in costs between schemes.

Start thinking European car…

Just getting into the right scheme with the right fee structure could save $68,000 over 15 years (have a peek at the results in the table below). So the choice is making your New Zealand superannuation scheme manager rich or yourself rich, we know which one we would choose.

Scheme 1 Scheme 2
Annual fees 3.04% 1.82%
Value of $100,000 investment after 15 years of average returns $368,000 $436,000

Basically, this all tells us, what might have felt like the right decision at the time needs to be constantly re-assessed in the light of the evolving New Zealand superannuation industry. So don’t sit on your hands anymore, get in touch with us today.

NZ free phone:0800 102 599 / OZ Free Phone:1800 857 410 /

very stress free

Thank you Cambel for your help and guidance throughout this process in getting my pension transferred (very stress free for me). It is greatly appreciated and I would certainly recommend you and Charter Square to others who are interested in transferring their pension.

David R, New Zealand

You guys rock!

I just wanted to say a great big thank you to you and your team. You are all totally awesome. I received a cheque yesterday from the Prudential to apologise for the ‘recent inconvenience’ that I had experienced. Thank you for doing this for me. You guys rock!

Noelle B, New Zealand

professional, insightful

Charter Square were professional, insightful and a pleasure to work with. They rose to the challenge of consolidating my overseas pensions and bringing them home with minimum fuss for me and maximum effort on their part.

Jens H, New Zealand

thorough, professional and prompt

Very thorough, professional and prompt service from the team at Charter Square. Thanks for making the bewildering world of pension transfers super simple.

Jules T, New Zealand

Best party to deal with

Thank you kindly for keeping in touch with me. For now, I will not be moving my pension. I will however be keeping your details and referring back to you when I wish to pursue. You by far are the best party to deal with, no nonsense, professional and in my opinion genuine. I do sincerely thank you for your advice to date.

GE, New Zealand


Securing the freedom to use savings that are actually ours to work with has been stressful in the extreme. While I never planned on giving up there were many times when the current (UK) holder made the whole process seem well beyond my determination and ability. It’s easy to look at the 36 month history of this claim with the benefit of hindsight, but the conclusion is that employing Charter Square in the first instance would have been wise had I been able to anticipate the red-tape that appears to have been deliberately created to stall access.

CP, Auckland
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