KiwiSaver provider backs compulsory super

New Zealand’s biggest KiwiSaver provider ANZ is backing compulsory super after new research finds that just 53 per cent of New Zealanders who earn less than $50,000 are members of KiwiSaver.

Although the research found that 80 per cent of those surveyed who earned more than $100,000 were KiwiSaver members, many were not regularly contributing to the scheme.

Since KiwiSaver was launched 10 years ago, 2.7 million people had joined, however, 375,000 working-age people have not enrolled in the scheme.

ANZ is proposing that KiwiSaver is made compulsory. If it is not made compulsory, ANZ is suggesting all adult non-members should be automatically enrolled with an option to opt out or a reintroduction of Government incentives to join up.

ANZ said the findings do raise questions about whether KiwiSaver is reaching the people who need it the most. Only 35 per cent of those surveyed said they have calculated how much they will have saved by age 65. A further 37 per cent said there was too much uncertainty and 22 per cent said it was too hard to work it out.