KiwiSaver is working well for “most New Zealanders” who are in stable employment, with 90% of those earning $50,000 or more actively contributing to the retirement scheme, according to the Retirement Commission.
The Commission released new research on Tuesday, finding that KiwiSaver is delivering strong results for the majority of participants, but more support is still needed for members of the scheme who aren’t working full-time.
“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,” Michelle Reyers, the policy lead at the Commission, said.
“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.”
70% of all KiwiSaver members are making contributions of some form
Actuaries Melville Jessup Weaver (MJW) were hired by the Commission to collect comprehensive data on 98% of all KiwiSaver members’ balances. This is the first time that MJW has collected data on KiwiSaver balances based on contribution status.
The data was provided by KiwiSaver providers in early 2026, giving a snapshot as at 31 December 2025 of 3,351,406 members with total balances of $138.37 billion. In December 2025, there were 3,432,341 KiwiSaver members in the scheme total, according to Inland Revenue (IRD), the government department that tracks these figures.
KiwiSaver balances were found to have continued to increase in 2025, with average balances rising to $41,286, up $4,207 or 11.3% from the prior year.
While 90% of those earning above $50,000 per year are currently contributing to KiwiSaver, approximately 70% of all KiwiSaver members were found to be making contributions of some form. A slightly higher proportion of women (71.3%) contributed compared to men (68.8%).
The Commission said contributing members have significantly higher average KiwiSaver balances. The average balance for contributing members is $50,727 compared to $19,553 for non-contributing members.
The Commission found that 50% of people who do not contribute to KiwiSaver at all have an annual income of under $4,049.
Contributing outcomes also 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, according to the Commission’s report.
Gender saving gap falls by 1% but remains persistent
The research found that while there are still slightly more female members (51.1%) than male members (48.9%) enrolled in KiwiSaver, there is still a hefty savings gender gap of 24% between the KiwiSaver balances of women and men.
That gap has narrowed by 1% from a 25% gender savings gap observed in each of the past three years.
At the end of 2025, the average male KiwiSaver balance came to $47,452, which is $9,240 higher than the average female KiwiSaver balance of $38,212.
“If we want more New Zealanders to build meaningful savings, we need to focus on closing these gaps,” Reyers said.
“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.”
The Commission found that the gender savings gap gets wider through people’s working years, peaking in the late-50s to mid-60s age cohorts. For example, women aged 56 to 60 were found to have an average KiwiSaver balance of $63,556, compared to men in the same age bracket who had an average KiwiSaver balance of $86,163 – a difference of $22,607.
‘Every dollar lost today is a dollar that can’t compound for their retirement’
In new research also out of Consumer NZ on Tuesday, the advocacy group said overall satisfaction with KiwiSaver providers has risen by 10% in the past two years and is now at 62%.
But Consumer NZ chief executive Jon Duffy says cost-of-living pressures “continue to bite” and in the past year alone, 16% of KiwiSaver members have taken out either a savings suspension or a hardship withdrawal.
This trend was most common among people aged 18 to 39 and households earning under $50,000 a year, according to Duffy.
“When young people have to dip into their KiwiSaver just to get by, they’re borrowing from their future selves. Every dollar lost today is a dollar that can’t compound for their retirement,” he said.
The latest KiwiSaver monthly early withdrawal figures from IRD show 8,620 KiwiSaver members took out more than $229.6 million for first home deposits and financial hardship reasons from the retirement scheme during the month of April.
Despite being a retirement savings scheme that people usually withdraw from when they reach the retirement age of 65, people are allowed to apply for early withdrawals to buy their first house or because of financial hardship.
April KiwiSaver withdrawals for financial hardship totalled $38.5 million from 4,410 people, while withdrawals for first homes reached $191.1 million from 4,220 people.
In April, there were 83,354 savings suspensions, which is when people temporarily stop their contributions. Of those, 1,128 stopped for financial hardship reasons.
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