Updated 9.58am: The Government's move to cull the KiwiSaver kickstart bonus, has been labelled as a surprising, if not sensible move.

Financial columnist Mary Holm said "there's really not much for kids to be in Kiwisaver any more" due to the loss of the $1000 boost for new enrollees to the scheme.

Financial Services Council CEO Peter Neilson said this a bad signal from the government.

"The 2.5 million New Zealanders already in Kiwisaver have received that. The next half million that join will probably be younger and poorer so will need it more, but they're not going to get it."

MORE: Tim Dower - Killing Kickstart makes no sense

Peter Neilson added that with an aging population, we should be encouraging more people to save, because in the future the wages of two people will be supporting every retiree, compared to five people now.

Opposition parties aren't happy with the move.

New Zealand First leader Winston Peters is scathing.

"He's made a stupid move there. We desperately need savings and a savings culture, but this is just a kick in the guts for middle income New Zealanders."

And Green co-leader Metiria Turei's calling it a knock for younger generations who want to save.

"The whole point of Kickstart is to encourage savings, which we are desperate for in this country."

However, Holm is still an advocate for the saving scheme.

"People now know what Kiwisaver is and hopefully still understand that it's really worth being in."

The subsequent $500 million plus in savings will be redistributed into other areas of public spending.

Mary Holm hopes the money saved will now be used to help Kiwis in other areas.

Bill English said there's still plenty of incentive for Kiwis to join the scheme.

"If you contribute, the employer has to contribute up to 3% to match you, and the government provides $521 a year in a tax credit straight into your account."

He promised not to touch this tax credit during his time in office.

Massey University's Claire Matthews says messing with Kiwi Saver isn't ideal.

"The only thing that I'm really unhappy about is that yet again, the government is fiddling with Kiwisaver. Somehow we have to pursued the government not to do that."