KiwiSaver now has 380,000 signed up, vs forecast of 276,000. This is no surprise – the moment they announced the compulsory employer contributions, I was sure there would be a significant take up rate.
I’ve signed up for KiwiSaver. I get an employee and an employer contribution from the Government, as well as tax deductibility on the rest of the employer contribution. Turning down free money never makes sense to me. Now that I needed to save more – I have been contributing to a super fund since I was 18.
The fact you have to opt out (not opt in) when you start a new job will make it de facto compulsory over time. And that is when it will get interesting as to how it affects state super.