Women's retirement savings gap persists despite KiwiSaver growth

The Retirement Commission has released new analysis showing the gender retirement savings gap is not driven by a single factor but by disadvantages that build across women’s lifetimes.

Prepared by consultancy MartinJenkins to support the Commission’s 2025 Review of Retirement Income Policies, the Improving Women’s Retirement Income report highlights six critical life stages where policy interventions could make the most difference: formal education and training, work, relationship status, parenting, housing tenure, and retirement.

The release also coincides with KiwiSaver’s 18th birthday, with more than $123 billion in managed funds and fresh calls at the FSC25 Conference for a national strategy to secure the scheme’s future.

Gender gap widens with age

Men’s KiwiSaver balances are on average 25% higher than women’s, and the gap grows with age. Among those aged 56–65, men’s balances are 37% higher.

Retirement Commissioner Jane Wrightson (pictured) said the research clarifies why the pattern persists.

“It’s no surprise that women in Aotearoa reach retirement with less in their KiwiSaver accounts than men – we’ve seen this pattern for years. What’s important now is that we understand why,” Wrightson said in a media release.

“This research gives us clarity: it’s not just about earnings, it’s about the cumulative impact of life events, caregiving roles, and structural inequalities that shape women’s financial journeys. If we want to close the gap, we need to confront these realities head-on.”

Policy levers to address inequality

The report suggests several reforms, including:

• Extending government KiwiSaver contributions for parental leave, including for those not contributing.
• Automating entitlement to a spouse’s KiwiSaver when a couple separate.
• Improving equity in KiwiSaver entitlements for low-income employees and sole traders.
• Revisiting default KiwiSaver fund settings.
• Expanding awareness and access to the Accommodation Supplement.

MartinJenkins researcher EeMun Chen said preventative measures can deliver strong long-term gains.

“The evidence shows that while earlier, preventative measures during women’s working lives may be costly, when we look at them in the long term, there are substantial positive social and economic returns,” Chen said.

Sector and policy discussion

The findings will be debated by experts at the National Strategy for Financial Capability’s Connection Series event in Auckland on Sept. 17.

The Retirement Commission, which recently partnered with Financial Advice New Zealand to improve advice access, said the evidence underscores the importance of preventative policies, which, while costly upfront, could significantly improve long-term retirement outcomes for women and reduce the gap.

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