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KiwiSaver automatic enrolments slow

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Sept 14 NZPA - The numbers of people automatically enrolling for the KiwiSaver superannuation scheme has slowed markedly, possibly as a result of the weaker economy and concerns about employment, Tower Investments says.

Tower, a default KiwiSaver provider, said net total membership of the scheme continued to grow, exceeding 1.5 million people, according to IRD figures.

Treasury initially forecast the government KiwiSaver scheme, introduced in 2007, would have 680,000 members by June 2014.

The majority -- 750,000 -- had opted in, while more than half a million people had been automatically enrolled, Tower Investments chief executive Sam Stubbs said.

Net total monthly membership growth was about 2 percent, with those opting in increasing by around 3 percent per month.

"Marked slowdown to 1 percent per month growth for the automatically enrolled (default) category is perhaps indicative of the weaker economy and lower hiring intentions by employers," Mr Stubbs said.

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