The FMA publishes a report every year based on all providers’ statutory data for the year to the end of March. It summarises our activities as a regulator relating to KiwiSaver during the previous financial year.
KiwiSaver Annual Report 2023: A year when contributions proved more important than investment returns.
KiwiSaver held firm in its sixteenth year as markets continued to experience significant volatility in the year to end of March 2023.
Total funds under management rose $4 billion or 4.3% to $93.7 billion, despite negative investment returns. This growth largely came from contributions from members, employers and the Crown, demonstrating the importance of regular contributions to KiwiSaver. Contributions make the biggest difference to KiwiSaver balances, followed by fund choices.
Growth funds are now the most popular fund choice as people become more comfortable with the long-term nature of KiwiSaver and more are making active choices. Last year’s changes to default settings – from Conservative to Balanced funds – also contributed to the shift toward growth funds.
For the first time in KiwiSaver history, fees didn’t rise, but rather fell by 8%. This was due to the combined effect of lower default fund fees along with some providers removing their membership fees, and others not earning the same level of performance fee as they might have in previous years.
This year also saw over-65s withdraw more than $2.8 billion from KiwiSaver – an increase of 46% on last year. This could have been a response to market volatility and the changing interest rate environment with an increase money in returns term deposits. While withdrawals were up, a large majority of people over 65 are keeping their money in KiwiSaver.
Highlights from the KiwiSaver Annual Report 2023 (infographic)