KiwiSaver closes in on 2 million members

KiwiSaver membership hit just short of 1.97 million by the end of June.

A default provider in the scheme, Tower Investments, has crunched the numbers on enrolment statistics held by the IRD for the month of June.

At just over 16,500 new members, the growth rate was somewhat sluggish.

But Tower Investments chief executive Sam Stubbs says it was a month characterised by intensifying public and political debate over the merits of making KiwiSaver membership compulsory for working New Zealanders.

“With the average monthly growth rate in membership much lower so far over 2012 than was seen the year before, it appears most of those workers who would voluntarily embrace KiwiSaver have already done so.

“The question arises as to whether the remainder of working New Zealanders who are not KiwiSaver members should be required to sign up.”

Tower’s analysis reveals at the end of June, 65% (1,278,680) of KiwiSaver members were active members, who joined the scheme by choice.

And 25.6% (503,723) were in government-assigned default schemes.

Mr Stubbs says Tower supports compulsory workplace superannuation.

“Whether or not funding of New Zealand Superannuation in its present form remains affordable over future decades is really beside the point,” he says.

“Compulsory KiwiSaver membership could go a long way to insuring New Zealanders against post-retirement risk, which is the risk associated with exposure to unanticipated costs and expenses or lower income once working life has ended.

“Moreover, compulsory KiwiSaver could be of huge assistance for building up the stock of domestic capital that New Zealand is going to need if it is to wean itself off from over-reliance on foreign capital.”

While New Zealanders debate the prospect of selling down public ownership of some state-owned enterprises, Mr Stubbs says it should be remembered KiwiSaver schemes would be steadily accumulating and stockpiling long-term investors in these businesses, helping keep ownership and control of the private sector float of the shares here.
 

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8 Comments & Questions

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Of course Tower thinks it should be compulsory. They are robbers in the insurance sector, why not Kiwisaver? The moment it is made compulsory, my family and many more I know will leave this country for good. Muppets.

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Where will u go? Australia - dont they have compulsory super? Muppet

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Another doomsayer with their head in the sand or up their proverbial.
If its compulsory and you move to Australia are you going to elect to opt of of the Australian Super. I would guess not . Nor can you bludge as much . In short Go asap.

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I totally disagree, we need more schemes like Kiwisaver because let's face it most people do not even for one second think about their retirement when they're older.. Moreover our country is terrible when it comes to saving so this is just one approach in tackling this issue. I am personally all for it!!

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Leave us alone - you are truly king of the Muppets! Compulsory Super is spot on and will prove its worth for the SAKE OF THE NATION - so off you go Mr Muppet - where to OZ? - hahahaha
If you don't wish to be part of the nation building but you and your Mum can pop off oh I don't know maybe to Ohio where the Tea Party is strong where you too can bemoan the state interference etc etc etc - boring!

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Kiwisaver is fine.
Just choose a decent provider.
I do not recommend Fisher Funds.

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