Q&A: Sam Stubbs talks KiwiSaver Trends

Q:  What sorts of trends are becoming apparent now that the KiwiSaver market is showing more maturity?

Sam:  Sign up rates to KiwiSaver are now well on the way to breaking 1.4 million and the next obvious milestone is the 1.5 million mark (Graph 1).  Underneath that statistic we are seeing some entrenched trends emerging for the subcategories of membership.    Opt-in via employer has basically flatlined while the other employer-connected subcategory of automatically enrolled has crept up steadily but unspectacularly.  In part this could have something to do with the employment market, as December 2009 quarter unemployment peaked at an 11-year high of 7.3%.  When the labour market picks up again we could see stronger growth out of these two subcategories.  What has pulled away markedly from employment-linked membership is opt-in via provider, where KiwiSaver members actively choose from the range of schemes available one they prefer to belong to.  Opt-in via provider is the major growth area for KiwiSaver.

Net total membership = The number of people remaining in KiwiSaver schemes after deducting those who exit via opt-out from automatic enrolment or for other reasons (such as being ineligible for KiwiSaver).