The Government’s KiwiSaver Scheme appears to be gaining popularity among employers and employees, with more than 1.6 million people enrolled as at the end of February 2011.
An Inland Revenue Department Statistics showed that as at the end of February 2011, KiwiSaver was more popular with women (851,418) than men (790,692). Teenagers up to the age of 17 topped the membership list with 293,059, followed by people in the 55 plus age group (285,280). There were 273,845 members in the 25-34 age group and 266,511 in the 35-44 age group. The number of persons between 45 years and 54 years were 266,369, while those between 18 years and 24 years were the lowest at 255,230.
Westpac leads
Apart from commercial banks, there are a number of other providers who facilitate the Scheme but Westpac has emerged as the leader with 20,000 customers.
Westpac Head of Wealth Mark Fitz-Gerald said the Bank accounted for about 20% of the total number of members enrolled in the Scheme nationwide.
“Our KiwiSaver deposits have crossed $800 million, with more members joining the Scheme every day. Westpac has been a major supporter of KiwiSaver since it was launched three years ago. This is an important product since it will help New Zealand and New Zealanders to switch from consumption to savings,” he said, speaking to Indian Newslink.
Mr Fitz-Gerald said as a long established bank (1861), Westpac has a large customer base, offering diversified products and services to all income groups.
“Our managers and staff are proactive, talking to customers of the need to save and explaining to them the benefits of KiwiSaver. We agree that the Scheme has the potential to cover more New Zealanders and we are positive about its growth with Westpac customers,” he said.
He said the Bank records about 50% growth of KiwiSaver every year.
“The Scheme has been extremely popular with migrants, registering 100% growth. We would like all New Zealanders to enrol under the Scheme, since it promotes thrift and the much-needed savings habit,” Mr Fitz-Gerald said.
A KiwiSaver Star
Westpac encourages staff to promote the Scheme among customers with incentives and accolades. Sujitha Sundaralingam of the Bank’s Avondale Branch in Auckland enrolled 536 members during the one-year period from September 2009 and September 2010, gratifying her employers.
Sujitha credited her success to the advantages that the Scheme offers.
“I believe KiwiSaver helps people towards their goals, be that home ownership or retirement savings. The incentives are massive and those yet to enrol do not know what they are missing,” she said.
Ms Sundaralingam said a large proportion of her sales came from people over 50 years of age, many of who had little or no savings for their retirement.
Her statement conformed to the overall statistics of KiwiSaver.
“Customers were excited when they realised their entitlements under the Scheme and we believe at Westpac we add value to our services,” she said.
Voluntary Scheme
KiwiSaver is a voluntary, work-based savings initiative to help New Zealanders with their long-term saving for retirement.
‘NZ Super,’ which provides some income for people after retirement, is not sufficient to sustain basic standard of living.
KiwiSaver is a good option fostering the concept of savings and rewarding people handsomely in the future.
The Government offers a series of incentives for people to join KiwiSaver. These include a contribution of $1000 at the start of membership, tax credit up to a maximum of $1042.86 per year, eligibility of assistance with the deposit on their first home and employer participation.
According to IRD, the first home deposit subsidy is $1000 for each year of KiwiSaver contribution up to a maximum of $5,000 for five years.
“A couple buying a house together would both qualify for a combined subsidy up to a maximum of $10, 000,” a communiqué said.
KiwiSaver Benefits
$1000 at start-up from the Government
Compulsory Employer Contribution
First Home Deposit Subsidy through Housing New Zealand
Savings withdrawal for first home
Tax Credit up to $20 per week
Total membership 1,650,343
Information as at February 28, 2011
