7 May 2008

KiwiSaver hits 600,000 mark with record month

78,000 New Zealanders joined KiwiSaver in April alone in a huge response to the government’s enhancements to the scheme, Finance Minister Michael Cullen and Revenue Minister Peter Dunne announced today.

Over 2,600 new KiwiSavers were signed up every day in April making it the biggest month for KiwiSaver yet and taking total enrolments to 600,043 just ten months after the scheme’s launch. Initial projections were for 270,000 New Zealanders in KiwiSaver after the first full year.

On 1 April, the government introduced compulsory employer contributions and the government tax credits to support them.

“New Zealanders are jumping at the opportunity to save for their retirement in numbers that few people could have predicted,” Dr Cullen said. “After ten months we now more than twice as many people in KiwiSaver than we expected to after the first year.

“KiwiSaver is a major assault on income inequality in retirement and a massive expansion of private savings. With well over 100,000 KiwiSavers under the age of 25 and a large number of low to middle income workers coming into the scheme we know that many KiwiSavers are new savers. Without this scheme these people would be falling behind in saving for their future.”

“One of the factors behind KiwiSaver’s success has been the willingness of employers and workers to take the time to learn about the scheme and be patient as we have worked through initial teething problems,” Peter Dunne said.

“This time last year as we planned to announce the enhancements we were not expecting a response anywhere near this big. It is a credit to Inland Revenue, employers, scheme providers and KiwiSavers themselves that the implementation process has gone as smoothly as it has.”

ENDS

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