Muted growth for KiwiSaver membership in the New Year 

KiwiSaver membership growth analysis from TOWER Investments: February 2012

Default KiwiSaver provider TOWER Investments has released its regular monthly analysis of the IRD’s KiwiSaver membership statistics for the month of January, 2012.

“Total KiwiSaver membership edged up closer to the 1.9 million mark but at a subdued monthly percentage growth rate in January 2012,” said Sam Stubbs, Chief Executive Officer of default KiwiSaver provider TOWER Investments.

“Total KiwiSaver membership now stands at 1.879 million, with the largest join up method category – opt in via provider – closing in on 935 thousand members.”

“January’s monthly membership percentage growth statistics were down on comparable figures from around the middle of last year, with total monthly net growth at 0.85%, or just shy of 16 thousand new members.”

“The largest KiwiSaver membership percentage increase for January occurred in the automatically enrolled by employer joining category, at 1.01%, taking the number of people signed up that way to a little over 703 thousand.”

“Opt in via provider, while being the category with the most numerous members overall, continued to languish in growth, lifting only 0.82% for the first month of 2012.”

“Broadly speaking, the monthly percentage growth rates for January were about the same as they were for December of last year, and suggest further extension of the trend for KiwiSaver membership growth to continue, but at a steadily declining pace.”

“Monthly growth in KiwiSaver membership has not exceeded 20,000 since June 2011, and has fluctuated between 15 thousand (December) and 19.5 thousand (August) since then.”

“Based on the latest three-month average  join up rate of 16.8 thousand new members per month, total KiwiSaver membership will not break through the 1.9 million mark until March this year, but could well reach the two million mark by August if sustained,” said Sam Stubbs.

The accompanying Table 1 illustrates when monthly percentage growth rates for join up method categories last exceeded 1% (see below).

Table 1: Join up method categories: Last month recorded when monthly growth rate exceeded 1%

Appendix 1: KiwiSaver statistics at a glance for January 2012:

For further information please contact: Sam Stubbs, CEO TOWER Investments