KiwiSaver members reach almost 1.2m

KiwiSaver membership reached almost 1.2 million people in its second year, a growth of 54%, according to figures released by the Inland Revenue Department (IRD).

“We saw KiwiSaver’s membership reach almost 1.2 million people (1,189,597 as at end of September, 2009), with growth of 54% in that second year,’” Revenue Minister Peter Dunne says. 

“That means about 32,000 people joining every month which is tremendous.”

He said it is particularly significant to see the number of young people taking responsibility for saving for their future.

“The uptake has been good across the board, but it‘s particularly notable among people aged from 19 through to their mid-20s.”

Dunne said in the year to June 2009, $2.1 billion in contributions from members, employers and the Crown were passed to providers for investment, more than double the amount for the first year. In total, $3.15 billion in contribution was transferred to providers in the scheme’s first two years – or $4.25 billion to the end of September.

The report also looks at members’ contribution rates, which included the changes in April 2009. It found that of those who joined KiwiSaver since the changes, approximately half were contributing at 2%. However, most of those who joined before April 2009 have not changed their contribution rate.

The evaluation process runs from 2007/08 until 2012, and is a joint project between IRD, the Ministry of Economic Development and Housing New Zealand. 

Its objectives are to:

• Assess the implementation and delivery of KiwiSaver in order to inform ongoing development and service delivery
• Assess whether the key features of KiwiSaver are generating the expected outcomes
• Monitor KiwiSaver usage to understand the scale and pattern of take-up
• Examine the impact of KiwiSaver on individuals’ saving habits and asset accumulation
• Examine the impact of KiwiSaver on superannuation markets and the financial sector.