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 $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). 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% (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 Te Ara Ahunga Ora, 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.
Data sources
· MJW’s latest report contains data on 3,351,406 members with total balances of $138.37 billion as at 31 December 2025. The survey covers approximately 98% of the KiwiSaver member base.
· For the first time, MJW also collected contribution-status data (where providers could supply it), distinguishing between contributing and non-contributing members. A contributing member is someone who made a contribution in the previous 12 months (1 January–31 December 2025), excluding provider transfers. Because not all providers supplied this data, the contribution-status results are based on close to 3.21 million members (93% of KiwiSaver members).
· Data from Inland Revenue was used to provide additional insights about contribution status linked to income and age. The time period and membership base differ from the MJW data in that the Inland Revenue data is for the full KiwiSaver membership base at 30 June 2025.
By the numbers
· Average balance: $41,286 (+11.3% compared to 2024)
o Men: $47,452 (+11.2% compared to 2024)
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- Women: $38,212 (+11.8% compared to 2024)
· Gender gap (all ages): average male balances are close to 24% higher than average female balances (a difference of $9,240). The gap is slightly narrower than the 25% gap observed in each of the past three years, but remains persistent.
o For ages 18–65, average male balances are 26% higher than average female balances (a difference of $9,869).
· Across members where contribution status was provided, 70% were contributing in the year to 31 December 2025.
· Women were slightly more likely to be contributing than men (71.3% compared with 68.8%). This is seen across all age groups up to age 65.
· Contribution status is closely linked to incomes. Additional insights from Inland Revenue data show that 90% of those earning above $50,000 per year are contributing to KiwiSaver.
· Contribution status varies by age, in particular after age 45, and up to age 64 an increasing percentage of members are contributing across all income levels.
· Contributing members held much higher average balances ($50,727) than non-contributing members ($19,553).
o The difference widens through the core working ages (for example, at ages 61–65 the average difference is $62,150).
Read the policy brief here and the full report here.
Notes to editors:
About the RRIP
Under the New Zealand Superannuation and Retirement Income Act 2001, the Retirement Commissioner is required to carry out a Review of Retirement Income Policies (RRIP) every three years.
2025 Review of Retirement Income Policies | Retirement Commission Te Ara Ahunga Ora
ENDS
For media queries:
Elizabeth O'Halloran| Communications Lead
Ph: +64 21 749 467
Email: elizabeth@retirement.govt.nz