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.