Wellington, June 17 NZPA - Despite publicity about the sharemarket falling over 21 percent since October, around 39 percent of people are participating in workplace pension schems, a survey showed today.

That compared with 27 percent in October, when Kiwisaver was just getting under way. Participation in Kiwisaver had increased from 14 percent of those surveyed in October to 29 percent.

The quarterly survey commissioned by Mercer found 71 percent of respondents continue to believe the KiwiSaver scheme would be beneficial in preparing for retirement.

The proportion of New Zealanders who say they given thought to retirement and have made some preparations, has increased to 40 percent, from 33 percent in October.

Only 13 percent of say they have given little thought to retirement, down from 20 percent in the October benchmark study.

Mercer's business leader in New Zealand, Bernie O'Brien, said it was pleasing to see the message on planning for retirement was starting to hit home, thanks in part to a "media frenzy".

Only 21 percent of KiwiSaver members are under the age of 30.

It also found those in the 30-49 years old age bracket perceive they are unable to afford KiwiSaver contributions due to more "pressing" financial obligations such as mortgages and child raising, leading to a relatively low take-up rate of the scheme among this age group (29 percent).

NZPA WGT sml gt