KiwiSaver is working well for most

The Retirement Commission says KiwiSaver is working well for most New Zealanders in steady paid work, with 90 percent of those earning $50,000 or more (the annual minimum wage) contributing.

The research highlights how income and work patterns shapes KiwiSaver participation and outcomes over time and includes analysis of 98% of all members’ balances by actuaries Melville Jessup Weaver (MJW).

The data reflects the continued and persistent KiwiSaver savings gender gap, now 24% (a difference of $9,240) on average between men and women. The gap is slightly narrower than the 25% gap observed in each of the past three years.

While KiwiSaver is maturing and average balances are growing, what the data shows is that outcomes reflect people’s working lives, income, time in paid work, and the ability to contribute.

It shows that the scheme is working well for many, however for those on low incomes, part-time or not in paid work, lower rates of contribution mean that KiwiSaver gaps widen steadily over a person’s lifetime.

This results in much lower KiwiSaver balances at 65 years, and a more difficult financial situation in retirement. For half of people who do not contribute to KiwiSaver, their annual income is under $4,049. This figure illustrates the challenges involved in contributing.

Dr Michelle Reyers, policy lead at the Retirement Commission, says the findings show the scheme is delivering strong results for many, but also highlights where support is needed most.

“Seeing such a high rate, with 90% of people earning $50,000 or more contributing, is a strong signal that KiwiSaver is working as intended for people in stable, full-time work,” says Reyers.

“But the flipside is just as important. People on lower incomes, those working part-time, or those moving in and out of paid work are much less likely to contribute, and their KiwiSaver balances at age 65 reflects these reduced contributions.”

For many women, their KiwiSaver balances reflect time out of the paid workforce and interrupted contributions, with an average 24% gap across all ages, rising to an average of 36% at ages 56–65. If contributions are steady, balances grow, but if contributions are interrupted, the gap opens up and widens over time. This issue is compounded by the fact that women on average live longer than men and have less income to support their retirement.

These findings point to where policies can have the greatest impact, as discussed in the 2025 Review of Retirement Income Policies.

“If we want more New Zealanders to build meaningful savings, we need to focus on closing these gaps. This includes looking at ways to reduce contribution interruptions, such as support during periods of paid parental leave, and targeting incentives toward low-income earners who are less likely to contribute and most at risk of low balances,” says Reyers.

“KiwiSaver remains a critical part of the retirement income system, but it is not the only part. NZ Super plays a critical role by providing a foundation that does not depend on income or contribution history and is a key part of the retirement income system.”

Average balances continue to trend upward as the scheme matures, reaching $41,286 in 2025, an increase of more than 11 percent on the previous year. Fewer members now sit under $10,000 (down from about 41% in 2021 to about 33% in 2025) and a growing share hold more than $80,000 (up from about 8% in 2021 to about 15%, around 450,000 members).

However, outcomes remain uneven across the population, with women more likely to be represented in low-balance bands and men more likely to be represented in higher-balance bands.