April was the biggest month yet for KiwiSaver, says the Government, with 78,000 people joining up with the scheme.
Total enrolments in the Government-endorsed retirement savings plan have now passed 600,000 in ten months since it was launched. Initial projections were for 270,000 in the first fullyear.
Finance Minister Michael Cullen and Revenue Minister Peter Dunne announced the April enrolments today, saying that more than 2,600 people signed up every day last month.
Since April 1, employers have been required to contribute 1 per cent of an employee's earnings to that person's KiwiSaver account. The Government reimburses this money with matching tax credits.
"New Zealanders are jumping at the opportunity to save for their retirement in numbers that few people could have predicted," Cullen said.
"KiwiSaver is a major assault on income inequality in retirement and a massive expansion of private savings. With well over 100,000 KiwiSavers under the age of 25 and a large number of low to middle income workers coming into the scheme we know that many KiwiSavers are new savers. Without this scheme these people would be falling behind in saving for their future."
Dunne paid tribute to the willingness of employers and workers to take the time to learn about KiwiSaver and "be patient as we have worked through initial teething problems."
"This time last year as we planned to announce the enhancements we were not expecting a response anywhere near this big. It is a credit to Inland Revenue, employers, scheme providers and KiwiSavers themselves that the implementation process has gone as smoothly as it has."
