KiwiSaver contributions still slow
Inland Revenue’s sixth annual review of KiwiSaver shows that while investors are becoming more active in their choice of fund, most are still making the minimum required contribution.
The report, for the 12 months to June 30 this year, shows that 67% of the 2.15 million KiwiSaver members have chosen their own scheme, up from 65% last year and only 49% back in 2008. In 2013 there were 136,167 transfers, an increase of 24% on last year.
However, the report also shows that 58% of members are only contributing the minimum amount of 3% of their salary or wages and their employer 3%. This is roughly the same as last year (59%) before the minimum employee and employer contribution rate was raised from 2%.
KiwiSaver has often been cited as a future catalyst for growth in the financial adviser market, but Financial Services Council chief executive Peter Neilson says the IRD figures show it will still be a few years before this happens.
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