$50 Billion, It’s a big number!

KiwiSaver is fast approaching the massive milestone of $50 Billion in funds invested. It has come a long way since 1 July 2007 when it started, with savings expected to rise to $200b by 2030. That’s 73% of our current GDP!

Key KiwiSaver numbers

Members: 2,837,656

The current total number of KiwiSaver scheme members is now 2,837,656 – up 4.2% since March 2017. Net membership growth was 115,509. Year-on-year overall growth declined, from 4.8% in 2016, to 4.4% in 2017, to 4.2% in 2018. 1.2m are not contributing.

Assets: $48.6 Billion

Total assets in KiwiSaver rose to $48.6 billion this year. Gross investment returns for KiwiSaver schemes continued to grow, increasing by $455 million to $3.2 billion from $2.7 billion in 2017.

Contribution $797m

Split from Members 557m, Employers 183m and the Government 57m

Average balance $17,130

The average member's balance in 2018 is $17,130, an increase of 14.4% on last year. The average investment management fee paid by members was $117 per year.

Scheme transfers 117,274

Transfers are made up of 117,274 active members changing scheme, and 72,462 people changing their default member status. Among these default members, 43,859 transferred out of the default scheme to a different provider and the remainder switched funds within their current default provider.

Will KiwiSaver be the saviour of the NZ economy?

If history repeats itself, about half of KiwiSaver funds will be invested in New Zealand. That means about $80b of new investment in New Zealand, in the next 12 years. That degree of new investment is unprecedented in this country. The multiplier effect on the economy should be significant. KiwiSaver money is very special from an investment perspective. It’s long term and 100% home grown, and it’s particularly attractive to anyone wanting to fund large, long-term, New Zealand investments. Even now, over $50 million a week of new investment is made by KiwiSaver managers into our local stock market and bond markets. By 2030 it should be closer to $200m a week. It's like a rising tide, hard to spot minute by minute, but very powerful long term. It will lift many boats, or at least those fit to float.