INDEPENDENT NEWS

Huge youth take-up of KiwiSaver a positive sign

Published: Wed 12 Mar 2008 11:07 AM
12 March 2008 Media Statement
Huge youth take-up of KiwiSaver a positive sign
Over 100,000 KiwiSavers are aged under 25, Finance Minister Michael Cullen and Youth Affairs Minister Nanaia Mahuta announced today.
“Young New Zealanders are getting behind KiwiSaver in overwhelming numbers,” Dr Cullen said. “This is a positive sign that young people are serious about planning for their future.”
As at 29 February, 113,084 people aged under-25 were enrolled in KiwiSaver. Over 75,000 were young workers between 18-24, while an additional 37,000 were less than 18 years old.
“The evidence is clear – KiwiSaver is changing New Zealand’s savings culture. Young people are starting a savings habit early and that is the best way to develop a renewed savings culture over time.
“By and large, these young people will not have been existing savers prior to the scheme’s launch. This means that the Labour-led government’s KiwiSaver scheme is already adding to New Zealand’s net savings rate.”
Nanaia Mahuta said young New Zealanders should be applauded for looking ahead, and using these early years in the workforce to save for the future.
“The real message to young New Zealanders is, the earlier you start Kiwisaver, the greater security you will have in the future. I’m pleased the Labour-led Government is supporting this forward looking initiative to make a difference in the lives of young New Zealanders,” said Nanaia Mahuta.
“Young people who join KiwiSaver when they first enter the workforce will have an opportunity to get a head start on saving for their first home, and over time, for their retirement.
“We are also receiving anecdotal evidence that a number of grandparents, aunts, and uncles are signing up children in their families. Those aged under 18 can be signed up for KiwiSaver, receive the $1,000 kick start which gets invested by providers, and can then start contributing when they enter the workforce,” said Nanaia Mahuta.
ENDS

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