Young Kiwis boost contributions, but gender and regional gaps persist
Data from the latest ANZ KiwiSaver Insights Report – Turning the Tide highlights how younger New Zealanders are reshaping long-term retirement and housing savings.
For mortgage advisers, these shifts in contribution rates and fund selection suggest stronger demand for first-home deposits and mortgage finance in the years ahead.
“We’re at a pivotal moment in shaping our retirement savings system,” said Fiona Mackenzie (pictured), managing director of ANZ Investments.
“With the right support Gen Alpha and Gen Z could lead New Zealand into a future where retirement is secure, equitable and sustainable.”
Younger savers prioritise deposits
The report found 27% of 16- to 17-year-olds contributed to KiwiSaver in June–July, despite no government or employer matches. ANZ modelling shows a 15-year-old starting work at 21 could save $1.16m by retirement or $689,000 if they purchase a home at 35.
“They get it, and our own research confirms this; they see KiwiSaver as their primary way of saving for a first home and for retirement,” Mackenzie said. “They aren’t relying on NZ Super in the way older generations have.”
For brokers, this signals a pipeline of younger borrowers building deposits, with KiwiSaver withdrawals continuing to play a crucial role in first-home purchases.
Regional and gender disparities
The data also highlighted uneven participation. South Island regions such as Marlborough, Otago, Southland, and Canterbury show over 70% engagement, while Auckland and Northland lag just above 60%.
The gender savings gap remains a concern, with men holding average balances of $38,206 versus $32,133 for women, widening to $17,000 by age 64. These disparities could affect both retirement outcomes and borrowing capacity.
Shift toward higher-growth funds
Younger generations are taking on more risk in pursuit of long-term gains. Gen Alpha has 64% of members in growth funds, compared with 41% of Gen Z and 35% of Millennials.
ANZ’s Fund Chooser Tool is guiding nearly half of all switches, with around 4,000 recommendations a month. This reflects growing financial literacy and confidence among younger members – a factor brokers may encounter in more financially engaged clients.
Call for long-term reform
Mackenzie emphasised that KiwiSaver and NZ Superannuation must evolve to remain sustainable.
“If we hope to achieve this, we need a shared commitment to addressing the long-term sustainability of NZ Superannuation and KiwiSaver through adjustments to both systems,” she said.
“This should include a serious look at gradually increasing both the KiwiSaver default contribution rate and the retirement age, more incentives or assistance for those who find it hardest to save and improved financial literacy initiatives for everyone.”
Adviser takeaway
For advisers, ANZ’s findings point to:
- Younger borrowers entering the market earlier, using KiwiSaver savings as deposits
- Regional variation in savings strength that could shape lending pipelines
- Gender-based disparities that may affect borrowing capacity and household affordability
“KiwiSaver is a powerful long-term investment in New Zealand’s future prosperity,” Mackenzie said. “Establishing a clear and consistent long-term plan for KiwiSaver will help build confidence and ensure Aotearoa stays on a strong and sustainable path while helping New Zealanders plan for their futures with certainty.”
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