KiwiSaver Numbers Closing In On 700,000

by Mary Swire, for LawAndTax-News.com, Hong Kong

12 June 2008

The number of New Zealanders saving through KiwiSaver has passed 670,000, with over 2,300 new members signing up every day in May, Finance Minister Michael Cullen and Revenue Minister Peter Dunne announced on Thursday.

As at 31st May, 673,942 New Zealanders were members of KiwiSaver, the Ministers revealed. Over 70,000 of these members joined during the month of May, nearly equalling the pace set during April when numbers soared after the introduction of employer contributions and tax credits.

“KiwiSaver has shattered expectations from day one,” Dr Cullen commented, adding that:

“270,000 New Zealanders were expected to sign up after the scheme’s first 12 months – 11 months in that number has been exceeded by over 400,000."

He continued: “It is especially gratifying to see so many young New Zealanders starting a savings habit as a result of KiwiSaver. Over 180,000 KiwiSavers are under 25 years-old – no one would have predicted that a year ago."

“New Zealanders know that KiwiSaver makes saving for retirement easier than ever before. We could easily see over three-quarters of a million KiwiSavers by the end of winter.”

“KiwiSaver’s success is down in large part to the cooperation of employers over the past year,” Peter Dunne added, going on to conclude that:

“KiwiSaver has quickly become part of the New Zealand workplace, especially for workers starting a new job."

“We have laid the groundwork for a major assault on New Zealand’s poor savings record and everyone who has played a part in KiwiSaver – workers, employers, scheme providers, and Inland Revenue – should be pleased with what has been achieved.”

Recommended