KEY POINTS:
The Government has launched a $7.4 million campaign promoting the workplace saving scheme KiwiSaver.
Finance Minister Michael Cullen said the campaign would highlight a historic "landmark" in economic and social legislation that would be remembered in decades to come.
"KiwiSaver is the most important initiative in a generation
to change our savings habits and the measures announced in Budget 2007 make it even easier for New Zealanders to take steps today to safeguard tomorrow," Dr Cullen said.
The first of three television advertisements plays tonight.
They feature a light-hearted look at the pitfalls of entering the workforce as well as the problems and highlights of working life.
The $7.4 million will be spent over two years and covers television, radio, press and on-line material as well as mail-outs to employers.'
The adverts highlight the Government sweeteners on offer and emphasise how the scheme will make it easier for people to save.
Treasury has estimated that over the coming years 50 per cent of the workforce could sign up to the scheme.
The Government believes there will be some initial barriers to people signing up immediately because stretched budgets means they will find it hard to put aside 4 per cent of their gross income.
Dr Cullen believes that most people will remain signed up when they change jobs or enter the workforce as they will have to opt out of being part of a scheme.
However, a TV One/Colmar Brunton poll shows it could be more successful than many in Government expect.
Of those polled 67 per cent said they could currently afford to put 4 per cent of their income into saving for their retirement.
Overall 47 per cent said they would sign up for KiwiSaver "at this point in time", 45 per cent said they would not and 8 per cent didn't know.
Analysis of the poll showed there were indications KiwiSaver would be more popular amongst certain parts of the population.
These included:
*18 - 34 year olds (53 per cent);
*Females (52 per cent);
*Main urban areas (50 per cent); and
*Labour voters (59 per cent)
Of those who said they could afford to save, 51 per cent said they would join up, with those already in saving schemes saying they were more likely not to join.
Dr Cullen said the poll indicated a better than expected reaction to KiwiSaver.
"I think it is a good result at this stage given that we haven't started," Dr Cullen said.
The poll was a good indication of a "reasonable take up rate" and he was particularly pleased to see younger people were interested in KiwiSaver.
Dr Cullen said he was also surprised at how many people said they could afford to save.
The poll also found 61 per cent of people would have preferred a tax cut to KiwiSaver.
A result which did not shock Dr Cullen either.
"I don't think that is terribly surprising because that is money in the hand now versus obviously longer term prosperity and that is a reality we have to take into account".
- NZPA
