KiwiSaver breaks through 400,000 barrier

The number of New Zealanders joining KiwiSaver continues to beat expectations, with 414,144 signed-up at the end of January, compared with the Treasury’s initial projection of 276,000 by 1 July 2008, Finance Minister Michael Cullen and Revenue Minister Peter Dunne said today.

“The fact that the surge in the number of New Zealanders saying yes to personal savings continued into January, in the face of turbulent international markets, suggests that New Zealand is undergoing a strengthening in its savings culture,” Michael Cullen said.

“KiwiSavers are focusing on the long-term and that is good news for the long-term economic and social well-being of the whole country. The advent of KiwiSaver is, I think, assisting a maturing in attitudes toward short-term share price movements as more and more people keep an eye on the long-term benefits of saving and investing,” Michael Cullen said.

Peter Dunne said one of the most positive aspects of the latest data on registrations is the popularity of KiwiSaver among younger people.

“The registration level among young adults clearly indicates to me that KiwiSaver is acting to encourage a greater level of personal savings in New Zealand than we would have experienced had KiwiSaver not been created. That means the scheme is acting to improve our net overall national savings performance,” Peter Dunne said.

As at the end of January 2008, around 55.7 per cent of KiwiSavers were under 45 years of age and around 22.3 per cent were younger than 25 years old,” Peter Dunne.

“Starting the savings habit early will mean that these young people will be able to generate significant savings by the time they retire and in some cases will be able to use their savings to buy a first home,” Peter Dunne said.