More than 600,000 join KiwiSaver
5:00AM
Thursday May 08, 2008
By Tamsyn Parker
KiwiSaver
- KiwiSaver numbers surge in April - 600,000 now signed up
- Call for changes to KiwiSaver
A record month for KiwiSaver in April has boosted the number of people signed up to more than 600,000.
More than 78,000 people joined the Government's retirement savings scheme last month following the start of compulsory employer contributions on April 1.
The sign-up rate has blown away initial forecasts which predicted 270,000 would join in the first year of the scheme. Finance Minister Michael Cullen said it appeared New Zealanders were jumping at the opportunity to save.
Revenue Minister Peter Dunne said a factor behind the success was the willingness of employers and workers to take the time to learn about the scheme and be patient through initial teething problems.
A number of problems surfaced in the first six months as the Inland Revenue struggled to handle the volume of sign-ups.
Steven Giannoulis, general manager of investors services for ING, which is thought to be the biggest provider, said the number of sign-ups was a positive sign and the recent increase showed people were becoming more aware of the benefits available.
As of April 1 employers had to contribute 1 per cent of an employee's salary for those who join KiwiSaver. This will rise by 1 per cent per year to 4 per cent by 2011.
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