First KiwiSaver cheques mainly govt money

KiwiSaver fund managers were the benefactors of the government's generosity when they received their first contribution cheques at the start of this month.

Sunday, October 14th 2007, 10:18PM

In October $41 million in KiwiSaver funds were transferred to fund managers. The bulk of this money was not investor contributions, rather it was government money.

Of that transfer $32 million was government contributions that include the $1,000 kick-start and half the $40 annual fee subsidy.

This means only $9 million was actual savings. 212,794 people enrolled in the scheme, and that figure is a 64% increase in enrolments since the end of August.

Of those people enrolled:

101,748 people actively chose a provider and went directly to a scheme to enrol
67,028 people actively chose to join KiwiSaver and enrolled via their employer
44,018 new employees were automatically enrolled by their employer. However, 21,113 opt-outs also received.

Demographic data indicates that while the KiwiSaver enrolment rate increases as people near 65 years of age, almost half (49%) of people joining KiwiSaver are younger than 45. Members under 20 years of age are 8.6% of the total.

"KiwiSaver is off to a very good start, and it is encouraging that so many people have decided joining KiwiSaver is the right choice for them. The latest enrolment numbers reinforce that KiwiSaver is a simple and appealing way to save for retirement for a broad range of New Zealanders," Finance minister Michael Cullen and Revenue minister Peter Dunne, say in a statement.

« KiwiSaver enrolments exceed 200,000

People engaging with KiwiSaver »

Special Offers

First KiwiSaver cheques mainly govt money

KiwiSaver fund managers were the benefactors of the government's generosity when they received their first contribution cheques at the start of this month.

Sunday, October 14th 2007, 10:18PM

Commenting is closed

www.GoodReturns.co.nz