Research has indicated that 90 percent of New Zealanders earning over NZD 50,000 contribute to KiwiSaver, which the Retirement Commission said was working well.
New research from Te Ara Ahunga Ora Retirement Commission has found that KiwiSaver is working well for most New Zealanders in steady paid work, with 90 percent of those earning NZD 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 an analysis of 98 percent of all members’ balances by actuaries Melville Jessup Weaver (MJW). This is the first time MJW has collected data on New Zealanders’ balances based on whether they were contributing or not.
The data reflects the continued and persistent KiwiSaver savings gender gap, now 24 percent (a difference of NZD 9,240) on average between men and women. The gap is slightly narrower than the 25 percent 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 NZD 4,049. This figure illustrates the challenges involved in contributing.
Dr Michelle Reyers, Policy Lead at Te Ara Ahunga Ora, said 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 percent of people earning percent 50,000 or more contributing, is a strong signal that KiwiSaver is working as intended for people in stable, full-time work,” said Dr 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 percent gap across all ages, rising to an average of 36 percent 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,” said 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 NZD 41,286 in 2025, an increase of more than 11 percent on the previous year. Fewer members now sit under NZD 10,000 (down from about 41 percent in 2021 to about 33 percent in 2025) and a growing share hold more than NZD 80,000 (up from about eight percent in 2021 to about 15 percent, 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.
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