The number of New Zealanders joining KiwiSaver continues to beat initial expectations, finance minister Michael Cullen said today.At the end of January, 414,144 Kiwis had joined up, compared with the Treasury’s initial projection of 276,000 by July 2008.
Cullen believes the surge in New Zealanders saying yes to personal saving, despite unstable international markets, is a sign the country’s ‘savings culture’ is growing stronger. He believes more people are keeping “an eye on the long-term benefits of saving and investing.
“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.”
Revenue minister Peter Dunne believes one of the most positive aspects of the latest data on registrations is the popularity of KiwiSaver amongst younger people.
He believes the level of registration among young adults indicates that KiwiSaver is encouraging greater levels of savings, compared to if the scheme had not been introduced.
“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,” he said.
At the end of January 2008, around 55% of KiwiSavers were under 45 years of age and around 22% were younger than 25.