Media Release
MR No. 2025 – 36
The latest KiwiSaver Annual Report shows the retirement savings scheme is proving to be resilient amidst volatility and uncertainty.
The report, released today by the Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko – shows total funds under management grew 10% to $123 billion, driven by $12.2 billion in contributions, and $6.4 billion in net investment returns.
FMA Chief Executive Samantha Barrass said: “There is probably no other financial product that is so closely associated to the future financial wellbeing of New Zealanders as KiwiSaver.
“This year’s annual report shows KiwiSaver has become a trusted scheme that is firmly recognised as the primary retirement savings strategy for most New Zealanders.”
Reflecting KiwiSaver’s primary purpose as a long-term investment scheme for retirement, it was encouraging to see that just under half of all members were now invested in growth-category funds, she said.
The contributions figure represents an 8.8% increase from the previous year, despite a challenging labour market and ongoing cost-of-living pressures.
“It’s clear from these results that KiwiSaver remains resilient amidst economic volatility and uncertainty.”
Samantha Barrass noted some room for improvements.
“The number of non-contributing members continues to rise, with 30 percent of members of working age not contributing. That’s up from about 20 percent in 2010. Even among active choice members, there are 1.2 million who are not currently contributing.
“We remain concerned about the long-term opportunity cost of foregoing retirement contributions. If this trend continues, we risk a stark inequality between the contributing and non-contributing members of our national retirement scheme.
“The rising number of these non-contributing members may well reflect the economic headwinds currently impacting New Zealanders. The rise in hardship withdrawals is also noticeable. “
She said the industry had a role to play in lifting contributions.
“For default KiwiSaver providers, there are obligations to engage with default members throughout their retirement savings journey, including during times of volatility, and near the end of a member’s savings suspension.
“Sharing information with members about their contribution options and planning tools available to them better enables people to plan their long-term retirement goals.
“By providing support and evolving to meet the needs of members, providers and the FMA can ensure KiwiSaver continues to work as intended, helping New Zealanders build long-term savings and independence in retirement.”
Promoting a fair, efficient and transparent KiwiSaver market is a priority for the FMA. This starts with the FMA ensuring that all providers are focused on the best interests of their members.
