Forsyth Barr savings specialist Damian Foster said average monthly sign-up rates for the past June year had been around 30,000.
However, sign-ups were expected to have peaked, with membership not forecast to reach 1.38 million until 2013-14.
Transfers between KiwiSaver providers had nearly tripled in the year to June.
"This highlights competition between schemes and the public also becoming aware they can easily switch between providers, identifying providers who have service and investment options, and performance and fee structures that suit personal objectives."
Despite the transfer movement between providers, 49% of total assets was being invested in conservative funds, with just 18% in growth funds, Mr Foster said.
The default KiwiSaver funds tended to be conservative investments and with close to 39% of KiwiSaver funds being invested in default funds, it was apparent many members were still not making an active fund choice around how to structure their KiwiSaver portfolio to meet their long-term objectives.
That was particularly noticeable among younger members of the savings scheme, he said.
About 17% of savers were aged under 18 and were not eligible for the $1043 annual tax credit. Their main motivation was the $1000 start-up contribution. Of the 17%, 94% were not making contributions to their funds through the IRD, although they could be making contributions directly to their providers, he said.
"It is quite compelling evidence though that many young people are in conservative funds and are not saving directly.
"While it is great to see the younger generation getting involved, there are benefits to making contributions at a young age."
Benefits included harnessing the power of compounding interest over the longer term and the first-home deposit subsidy from Housing New Zealand, which required members to be contributing for at least three years.
The first-home deposit was targeted at younger generations so condition of eligibility was making either employee contributions or voluntary contributions, Mr Foster said.
Of the total funds contributed into KiwiSaver accounts so far, 42% came from members' contributions, 13% was from employers and the remaining 45% from government, with 83% of savers contributing 4% of gross salary or wages.
Following KiwiSaver changes on April 1, 52% of new members had opted for the reduced 2% rate, Mr Foster said.
That reduced contribution might not provide the future savings rate required to meet long-term retirement and savings objectives.
"You only need to look at Australia's 9% employer contribution rate and booming economy to know this is a more active approach to managing future retiring populations."
