KiwiSaver membership tops 1.75m

Chief executive Sam Stubbs said that while the membership milestone was passed, "growth rates for KiwiSaver sign-ups fell after the Government’s Budget announcements of late May."

"Anecdotal evidence indicated that public perceptions of KiwiSaver had turned somewhat negative since the Budget set out reduced Government subsidies, increased taxation, and larger employer and employee contribution minimums to be phased in for the scheme over 2012-13."

Stubbs also said talk of potential compulsion had demotivated some people from joining the scheme "who believe they might be forced to belong later anyway."

He said June was also a rocky month for investment markets with fears Greece's debt problems could spark another global financial crisis, though those fears abated late in the month.