KiwiSaver enrolments plunge as $1000 kick-start ends

The removal of the $1000 kick start has caused KiwiSaver enrolments to plunge. NZH pic.

ANZ says new enrolments for its KiwiSaver scheme have more than halved since the Government axed the $1000 kick-start incentive in last month's Budget.

John Body, managing director of ANZ Wealth New Zealand, said the incentive's removal had affected people's confidence in the savings programme.

A survey conducted by the bank this month suggested 62 per cent of people who were yet to join KiwiSaver were now less likely to sign up because of the kick-start's scrapping, he said.

The ANZ survey also found roughly 40 per cent of respondents were now less confident about the future of KiwiSaver, while 52 per cent were concerned the Government would make additional changes to the programme that would affect their savings.

Body said it was vital that any future changes were "well-telegraphed" in order for New Zealanders to understand what was proposed and how it would affect them.

"More than 2.5 million New Zealanders have invested in KiwiSaver. It's clear that any changes to the scheme are likely to make people uneasy," he said. "We need a no-surprises approach here so people don't lose confidence in KiwiSaver because it's important to the whole country that New Zealanders save for their retirements."

Body said it would be short-sighted for people to give up on the savings scheme following the kick-start's removal.

"KiwiSaver remains an excellent retirement savings vehicle, with a lot of benefits for members," he said.

ANZ is New Zealand's biggest KiwiSaver provider.