KiwiSaver membership growth analysis Sept 2010

TOWER Investments – Press Release

For immediate release

15 October 2010

KiwiSaver membership growth analysis from TOWER Investments: September 2010

Default KiwiSaver provider TOWER Investments has released its monthly analysis of the IRD’s net total member count for KiwiSaver.

“Net total KiwiSaver membership as recorded by the IRD grew by some 27,000 to exceed 1.54 million over September,” said Sam Stubbs, Chief Executive Officer of TOWER Investments.

“Of the new members who joined, 60% were opt in via provider (active choice), 33% were automatically enrolled (default), and 7% were opt in via employer (preferred provider),” he said.

“Opt in via provider (active choice) finally exceeded three quarters of a million Kiwis in September and the automatically enrolled (default) category grew to over 560 thousand,” he said.

“Despite the overwhelming dominance of opt in via provider (active choice) within total Kiwisaver membership, the monthly growth rate for this membership category slipped to 2.2% in September after averaging closer to 3% per month since April of this year,” he said.

“By contrast the workplace-related categories of automatically enrolled (default) and opt in via employer (preferred provider) clicked up a bit in September to 1.6% and 0.9% respectively, perhaps signalling an upturn in labour market hiring,” he said.

“The uptick in automatically enrolled (default) monthly growth over September has taken the rate back to what it was in May and June of this year before depressed growth rates set in over July and August,” he said.

ENDS

Please see accompanying PowerPoint for statistics.

KiwiSaver_Growth_Statistics_Media_Release_1010.ppt

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