KiwiSaver membership hit two million, with almost one in three children and two-thirds of young adults signed-up by the end of the 2011-12 year, Revenue Minister Peter Dunne said today.
"Overall, membership grew by about 12 percent in this 12-month period," Mr Dunne said in releasing the fifth KiwiSaver evaluation annual report.
"The report shows that almost 29 per cent of children and nearly 67 per cent of 18 to 24 year olds were enrolled in KiwiSaver by the end of the 2011-12 year
Children under 18 need a legal guardian’s consent to join the scheme.
"I think that there can be few greater recommendations for the scheme than that parents are clearly supporting their children into it from very early ages. That is a real vote of public confidence in KiwiSaver.
"In August, the scheme reached two million members, which, again, in a population of four and a half million is quite a phenomenal achievement in just five years," he said.
Mr Dunne said there was continued growth in KiwiSaver membership across population groups, with a total of $12.7 billion passed to providers by 30 June 2012. That figure has since grown to $13.05 billion.
He said the continued increase in membership during 2011-12 shows that the programme continues to be popular with New Zealanders saving for their retirement.
The report also shows 62 per cent of members have chosen to opt into the scheme, as opposed to being automatically enrolled by an employer.
"People can choose their contribution level and from the wide range of schemes available, and they continue to gain the incentives of the member tax credits and the kick-start payments to help them on their way.
"Almost 2500 people have used their funds to help them buy their first home,’’ Mr Dunne said.
KiwiSaver continues to be an increasing part of the managed funds market. At June 2012, the value of KiwiSaver funds under management was $12.9 billion, representing about 17 per cent of the managed funds market, which is up 3 per cent on the 2010-11 year.
"KiwiSaver offers New Zealanders an easy, flexible way to save and continues to be taken up across the board," he said.
The report can be found at http://www.ird.govt.nz/aboutir/reports/research/report-ks/research-ks-annual-report-2012.html