The average Kiwi retires with $78k in KiwiSaver. For many women, it’s far less

Tuesday, 26 May 2026

The latest Retirement Commission report reveals the average KiwiSaver balance at age 65 sits at $77,900, leaving New Zealanders nearly $470,000 behind their Australian counterparts.

A significant savings gap emerges early in the workforce, with men's balances outpacing women's by 21% between ages 18 and 25, a disparity that widens to 35% by retirement.

Financial experts and advocates are urging the Government to fund KiwiSaver contributions during parental leave and build a cross-party, 10-year roadmap.

The average Kiwi now has $77,900 in their KiwiSaver account by the time they reach 65 – a figure that still leaves us $469,100 shy of our counterparts in Australia.

According to the latest report from the Retirement Commission, our savings by retirement age are up more than $8,000 than they were a year ago.

Balances are growing across every demographic group, with 90% of Kiwis earning $50,000 or more (the annual minimum wage) now contributing to KiwiSaver.

The average KiwiSaver balance across every age group now sits at $41,286, up from $37,079 a year earlier.

The number of people in KiwiSaver that have a balance above $80,000 has doubled over the last five years, showing the impact of a consistent savings habit.

The Tasman gap

Kiwis continue to lag behind Australians, whose Superannuation savings reach AU$448,518 ($547,000) by age 65. Australians receive a 12% employer contribution funded by strategic tax incentives. Consequently, a 35- to 39-year-old Australian worker will have more in their Superannuation fund than someone reaching retirement in New Zealand.

The important caveat here is that the Australian pension is means tested across the board, whereas NZ Super is provided universally to everyone (the one exception being for those who also receive a pension from a different country).

There are pros and cons to both systems. And we are starting to see some of the cons of the Australian system emerge here in New Zealand in the shape of a growing equity gap between higher and lower earners – and, quite tellingly, between men and women.

The equity gap

While our retirement savings numbers are all moving in the right direction, there are also a few issues that we will need to address in the coming decades.

A clear gender gap emerges early: between ages 18 and 25, men’s balances are 21% higher than women’s, widening to 35% by retirement. Ironically, women live longer than men and will ultimately require a higher level of retirement savings.

Dr Michelle Reyers, the policy lead at the Commission, says women and men are generally contributing the same percentage of their salary, which means this inequity is being baked in due to wider structural issues.

Women still tend to be in lower-paying jobs than men and also take out more time to tend to childcare, particularly after the birth of a child.

This embedded inequity is why NZ Super will remain an integral part of our retirement system.

“NZ Super doesn’t penalise you if you take time out of paid work or if you consistently earned less income than someone else,” says Reyers.

“It’s important to step back and look at our system as a whole rather than just focusing on one aspect.

Can these gaps be closed?

Former Mercury Energy boss Fraser Whineray has been calling for a number of changes to KiwiSaver as part of a longer-term rethink of the policy.

Principal among these is changing the system to ensure parents aren’t penalised for taking parental leave.

When a member takes parental leave, Whineray wants to see their employer contribution continue but paid by the Government rather than the employer.

Whineray argues that it’s essential for the Government to fund this, so we don’t see any further bias seep into hiring decisions.

In a series of recommendations made last year, the Retirement Commission also identified this issue as one that needed to be addressed.

Reyers adds that we also need incentives targeting low-income earners, who are less likely to contribute and are most at risk of low balances.

What about self-employed workers?

Kernel founder Dean Anderson says the latest report also highlights a need to address the gap for the self-employed and contractors.

“They earn, often well, but get no employer match and limited incentive to save for retirement outside the business,” says Anderson.

“That's where the policy conversation should be focused. Often these small business owners put their whole wealth into their business, which may not sell for what they expected. Creating savings outside the business is a prudent move to give options into the future.”

Anderson notes that given more than 90% of Kiwis earning over $50,000 per annum are contributing, this issue is more nuanced than simply imposing compulsion.

Those who can afford it or do see value in contributing are already contributing. The challenge now is creating the conditions for the self-employed and those on lower incomes to also add to their retirement savings over time.

KiwiSaver is working well, but these numbers show there is room for improvement in certain areas. Getting those improvements will, however, necessitate more than sporadic retirement lolly scrambles every three years when there’s an election.

This is why the Retirement Commission has been calling for cross-party consensus on a 10-year road map of how KiwiSaver should evolve and when those changes should come into effect.

Leaving policy to successive governments looking to appease their voter bases has fragmented key incentives and worsened inequities. Our retirement system is simply too important to allow that to continue.

So what are your thoughts? How should KiwiSaver evolve? Would you like to see cross-party support for a broader plan? Let us know in the comments below.