All children in state care will be signed up to KiwiSaver under a new Government proposal.
Current rules require the consent of both parents, or guardians, to enrol anyone under 18 years old to the savings scheme.
The Government wants to change that so the chief executive of the Ministry of Social Development can enrol young people in permanent care.
Social Development Minister Paula Bennett said they will receive the $1000 payment from the Government.
She said these children perhaps won't be able to build up a decent financial future so the change is about giving them the opportunity to create a nest egg for their retirement or a deposit on a first home.