KiwiSaver

In the first three months of KiwiSaver the enrolment figures have already broken through the 200,000 mark, Finance Minister Michael Cullen and Revenue Minister Peter Dunne said today.
Press Release

As of 5 October, the total number of KiwiSaver enrolments processed by Inland Revenue had reached 212,794. This is a 64% increase in enrolments since the end of August.

“Hundreds of thousands of New Zealanders are now finding it easier to save for their retirement by joining KiwiSaver,” the Ministers said.

“Members who joined in July already have their retirement savings working for them – last week the first contributions were transferred to KiwiSaver scheme providers. Over $41 million is forecast to go to providers in October, of which $32 million will be government contributions that include the $1,000 kick-start and half the $40 annual fee subsidy.”

The Ministers provided a breakdown of the 212,794 enrolment figure:

• 101,748 people actively chose a provider and went directly to a scheme to enrol
• 67,028 people actively chose to join KiwiSaver and enrolled via their employer
• 44,018 new employees were automatically enrolled by their employer.

These figures are net of 21,113 opt-outs also received.

Demographic data indicates that while the KiwiSaver enrolment rate increases as people near 65 years of age, almost half (49%) of people joining KiwiSaver are younger than 45. Members under 20 years of age are 8.6% of the total.

“Many parents clearly wish to give their kids a head-start and view KiwiSaver as important for their children’s future. It is also great to see a lot of younger people entering the workforce are getting into the saving habit early,” the Ministers said.

Other demographic data released by the Ministers showed that KiwiSaver enrolment figures by gender were generally even, with 52% female and 48% male.

“KiwiSaver is off to a very good start, and it is encouraging that so many people have decided joining KiwiSaver is the right choice for them. The latest enrolment numbers reinforce that KiwiSaver is a simple and appealing way to save for retirement for a broad range of New Zealanders.”

KiwiSaver schemes will be required to disclose their approach to responsible investment from 1 April 2008 under legislative proposals released today by Finance Minister Michael Cullen and Revenue Minister Peter Dunne.
Press Release

KiwiSaver schemes will be required to disclose their approach to responsible investment from 1 April 2008 under legislative proposals released today by Finance Minister Michael Cullen and Revenue Minister Peter Dunne.

The proposals have been designed to enable New Zealanders enrolled in KiwiSaver to have full confidence in the environmental and social credentials of the investments made on their behalf by KiwiSaver and KiwiSaver complying schemes.

“Growing numbers of shareholders worldwide want to ensure that their investments do not support activities or practices they do not approve of,” the Ministers said. “Many are also taking that a step further and want their investments to support activities and practices they do approve of.

“KiwiSaver providers will have to disclose in their investment statements whether their investment policies and procedures take into account responsible investment criteria – including environmental, social and governance considerations.

“If they do, they must tell members where they can obtain further information on the extent to which they take responsible investment into account. This will also allow funds with responsible investment policies to market their credentials.

“The Securities Commission will provide guidance notes for funds over the next few months,” the Ministers said.

The changes were outlined in Budget 2007 and it is proposed that they will be included in the taxation bill currently before Parliament by means of a supplementary order paper that amends the KiwiSaver Act.

The latest enrolment numbers for KiwiSaver confirm that the work-based saving scheme is off to a strong start, Finance Minister Michael Cullen and Revenue Minister Peter Dunne say.Total enrolments received by Inland Revenue had reached 129,591, with 5,900 opt-outs also received.

“It is encouraging to see that just two months since the launch of the scheme, almost 130,000 people are already saving for a better standard of living in retirement through KiwiSaver,” the ministers said.

The ministers provided details of how that 129,591 enrolment figure can be broken down:

• 61,061 people who have actively chosen a provider and gone directly to a scheme to enrol

• 51,139 people who have actively chosen to join KiwiSaver and enrolled via their employer
• 17,391 new employees who have been automatically enrolled by their employer.

The ministers noted that the figures include numbers of employees who are automatically enrolled in KiwiSaver who have eight weeks to opt out, so that could potentially affect the total.

“These figures are heartening, but they are just the start,” the ministers said.

“We’ll see them continue to rise as people realise the value of saving for retirement – especially when, subject to legislation now before Parliament being passed, compulsory employer contributions to KiwiSaver start next year.”

Kiwistart Investment flexibility, transparent costs and leading advice are the cornerstones behind kiwiSTARTTM, ABN AMRO Craigs new superannuation initiative just launched.
Press Release

Kiwistart Investment flexibility, transparent costs and leading advice are the cornerstones behind kiwiSTARTTM, ABN AMRO Craigs new superannuation initiative just launched.

kiwiSTARTTM offers individuals a sophisticated KiwiSaver product.

Our scheme provides not only a range of defined portfolios, but also personalised solutions. Investors, with the support of an Investment Advisor, can select the securities they wish to invest in, thereby tailoring their investments to their personal circumstances, explains Stephen Jonas, Head of Client Services at ABN AMRO Craigs.

With kiwiSTART, clients who already have investment portfolios are given the opportunity to manage their investment risks over their entire portfolio rather than treating superannuation as a discreet and separate investment.

The scheme also incorporates the key tenets of ABN AMRO Craigs investment philosophy. We invite clients to monitor the composition of their investment, and help them understand investment markets, risks and rewards.

A key component of our philosophy is to minimise costs and provide a full disclosure of fees, says Jonas.

ABN AMRO Craigs core expertise is providing quality investment advice for its clients. New Zealanders need to better understand superannuation investment, explains Jonas.

They should understand exactly what they are investing in and the risks associated with that investment. They should also always seek sound professional advice.

Jonas says that making the wrong choice with a KiwiSaver scheme provider can be costly with those who change schemes potentially incurring additional entry and exit fees. He also warns that headline rates or fees may appear low but the full costs and expenses may not be apparent and expert advice is required.

ABN AMRO Craigs has over 100 Investment Advisors throughout its 16-branch network, helping clients make more informed investment decisions.

The company has not participated within the superannuation space previously, but with years of investment management experience, KiwiSaver provides an opportunity to broaden the range of services it offers for both existing and potential clients.

As we have designed kiwiSTART to be flexible, we are able to encapsulate elements of socially responsible investing, by incorporating a range of SRI options as part of our personalised investment choices, says Jonas.

Although its product differs by enabling greater individually managed accounts, people who sign up to kiwiSTART will still qualify for all the Government incentives to which they are entitled.