KiwiSaver figures continue to show that the scheme is a big winner with the investing public. According to IRD figures, New Zealanders contributed $3.3 billion to the scheme in the June 2018 year and $1.2b for the first four months of the current year.
The following table shows total funds transferred from the IRD to fund managers since the scheme’s inception in 2007.
KiwiSaver contributions ($ millions)
Since the scheme’s inception $43.4b has been transferred to fund managers with 22.1% coming from the Crown, 28.8% from employers and 49.1% from individuals.
Scheme members have had great value for their money because they have contributed $21.3b but have $43.4b of investable funds, excluding investment gains.
The latest Reserve Bank statistics show that total KiwiSaver funds, including investment returns, were $53.6b at the end of September.
However, that figure doesn’t include $3.9b of withdrawals for retirement, death, permanent emigration, serious illness or for some other reason. A further $3.2b has been used for first home and financial hardship reasons.
Thus, the overall benefit is even greater as Milford estimates that for a total investment by members of $24.5b (which includes voluntary contributions made directly to providers), the total KiwiSaver value has been around $60.7b.
Consequently, it is not surprising that KiwiSaver, which at the end of October had over 2.9 million members, is such a popular scheme.
Disclaimer: This is intended to provide general information only. It does not take into account your investment needs or personal circumstances. It is not intended to be viewed as investment or financial advice. Should you require financial advice you should always speak to an Authorised Financial Adviser. Past performance is not a guarantee of future performance.