4.3 Method of enrolment
Respondents who were members could have become so by one of two routes: they would have been automatically enrolled if they had started a new job or alternatively they could have opted in, either through their employer or directly through a KiwiSaver provider. In this section we explore the factors associated with the decision to opt-in as distinct from auto-enrolment. The results are in the first column of Table 3.
In relation to the decision to opt in as distinct from being auto-enrolled, respondents were more likely to have opted in if they owned their own house, had higher net wealth or expected NZS to be their main source of income in retirement. Respondents were less likely to have opted in if they were employed part time, or had higher income.
The second column of results indicates factors that significantly affected the probability that having been enrolled, a KiwiSaver member would opt out. All automatically enrolled members had the option of opting out after two weeks and before eight weeks. In interpreting these results, it is important to underline the fact that the underlying regressions for opt-in and opt-out refer to two distinct populations. The opt-in group are those, who not having been automatically enrolled, took an active decision to voluntarily join the scheme. In contrast, those who are opting out come from the group who were automatically enrolled.
Respondents were more likely to have opted out rather than remaining in (having been automatically enrolled), if they were partnered. In contrast, they were less likely to have opted out, if they expected NZS to be the main source of income in retirement, were unemployed at the time of the survey, had higher income, or were older.
| Variable | Direction and significance | |
|---|---|---|
| Opt in | Opt out | |
| Number of observations | 474 | 526 |
| Owns house | + | ns |
| Net Wealth | + | ns |
| Expect NZS to be main source | ++ | - |
| Has a partner | ns | + |
| Respondent income | - | -- |
| Respondent employed part time | - | ns |
| Age | ns | -- |
| Respondent is unemployed | ns | - |
Notes:
1. Only variables that were statistically significant for at least one sub-group are shown.
2. +++ or --- significant at the 1% level; ++ or -- significant at the 5% level; + or - significant at the 10% level.
3. ns = not significant.
