The Covid-19 outbreak, resulting lockdowns, and financial market volatility have not dented the growth of KiwiSaver investment or membership.
File image. Photo: 123RF
The latest quarterly survey of the retirement savings scheme by investment industry group, the Financial Services Council (FSC), has shown funds rose more than 20 percent to $90.8 billion over the past year, with membership rising close to three million.
Contributions over the 12 months ended September were $6.32b with just under a third of that occurring in the past three months, with average balances rising from $23,672 to $27,858.
FSC chief executive Richard Klipin said KiwiSaver had held up well in the face of significant challenges from Covid-19, despite some initial panic when the virus arrived.
"The initial uncertainty when Covid-19 arrived in New Zealand last year caused some Kiwis to change their KiwiSaver settings, which had an impact on KiwiSaver balances."
"Now in the face of the Delta variant and current restrictions, these trends underscore that a 'steady as we go' approach to KiwiSaver investment pays off in the long-term," he said.
KiwiSaver settings will change from 1 December, with fewer companies appointed as default providers for people who do not nominate a provider, and the default investment fund now being a balanced fund rather than a lower-yielding conservative fund.