Turning The Tide: A Call To Strengthen Our Retirement Future
The report – Turning the Tide – shows younger generations are reshaping New Zealand's retirement future but there are challenges, such as regional disparity, the gender retirement savings gap and a lack of contributions by around 40 per cent of members.
'We're at a pivotal moment in shaping our retirement savings system,' says Fiona Mackenzie, Managing Director, 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.
'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.
'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.
'Recent announcements to strengthen KiwiSaver by increasing contribution rates and extending employer contributions to younger generations are a welcome development.
'At the same time, changes to government contributions may reduce some of the incentives for participation. Ensuring long-term equity across the system remains an important consideration as these reforms evolve.'
Key findings from the report show:
Gen Alpha and Gen Z are contributing to KiwiSaver at encouraging rates, despite limited incentives, signalling a shift toward stronger long-term savings.
27% of 16–17-year-olds contributed in June–July, even without government or employer matches.
A 15-year-old starting work at 21 could save $1.16M by age 65, or $689,000 if they buy a home at 35.
Generational Contribution Trends
Gen Z: 53% contributed, despite high youth unemployment.
Millennials: ~60% contributed.
Gen X: 72% of women and 68% of men contributed.
Baby Boomers: ~60% contributed; 33% of pre-1946 members still contribute.
Regional Engagement
South Island regions lead in KiwiSaver contributions:
Marlborough, Otago, Southland, Canterbury: Over 70% engagement.
Auckland, Northland: Just over 60% engagement.
Gender Savings Gap
Males contribute more than females across all age groups except Gen Alpha.
The gap grows with age, reflecting broader income disparities:
Average balance: Men $38,206, women $32,133.
At age 64, the gap reaches $17,000.
Fund Selection Patterns
Younger members increasingly choose growth-oriented funds:
Gen Alpha: 64% in Growth Fund.
Gen Z: 41% in Growth Fund.
Millennials: 35% in Growth Fund.
Digital Tools Boost Confidence
ANZ's Fund Chooser Tool:
Delivers ~4,000 monthly recommendations.
Guides nearly half of all fund switches.
'The data around the savings habits of younger generations is particularly encouraging,' Ms Mackenzie says.
'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. They aren't relying on NZ Super in the way older generations have.
'We like to compare ourselves to Australia, but if we aspire to a similar approach there is significant work to do building our national savings.'
Ms Mackenzie says it's important that everyone – including employees and employers – are given certainty about KiwiSaver's future, so they have time to prepare.
'It is time for a proper conversation about the eligibility for superannuation, including the age of eligibility for NZ Super and whether means testing needs to be introduced at some future date.
'Well in advance of any changes to eligibility for superannuation, we need to be strengthening our savings, looking at how we get every young person signed up for KiwiSaver, and how we support those who are disadvantaged. Giving everyone time and certainty to plan for their life after 65 is critical.'
ANZ Investments' Turning the Tide report aims to produce insights from customer data to help inform important conversations about KiwiSaver and help members understand the challenges and opportunities they face.
This includes focussing into areas where people are disadvantaged and looking at innovative ways to help close the savings gap.
Ms Mackenzie says better understanding where and why variations and disparities are occurring can help policymakers and providers tailor strategies to boost participation, particularly in lower-contributing areas.
'We all have a role to play here in how we work together to address these challenges over time in a way that earns public support.
'KiwiSaver is a powerful long-term investment in New Zealand's future prosperity. 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.'
ANZ Bank New Zealand Limited
Get on top of your money
ANZ has been helping New Zealanders get on top of their money ever since we opened for business in 1840. We were New Zealand's first bank and today we have a large network of full-service branches and ATMs, and talented people across the country.
We're passionate about helping our customers make their money work harder and equipping them to make better financial decisions. Whether it's travelling the world, buying a home, building a business, investing for the future or protecting their family's future, we use our financial strength and expertise to help make it happen.
Through our sponsorships, our Staff Foundation and thousands of staff volunteer hours each year, we support causes that make a difference to New Zealanders.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
RNZ News
5 hours ago
- RNZ News
Which region has the highest KiwiSaver balance?
Where you live might make a difference to your KiwiSaver balance. Photo: RNZ / Hingyi Khong Data from the country's biggest KiwiSaver provider shows that when it comes to putting money aside in the scheme , where you live matters. A comparison of average balances around the country shows Wellingtonians lead the pack. There, ANZ members had an average balance of $44,863. That was followed by Taranaki, at $40,562. At the bottom of the table, more than $10,000 behind were Northland, at $33,830 and Gisborne, at $33,673. ANZ Funds Management managing director Fiona Mackenzie said KiwiSaver could hard code any income inequality. People who earned less over their lifetimes would end up with less in their KiwiSaver accounts as a result. Northland had an average household income last year of $123,900 according to government data, while Gisborne was $133,200. Wellington's average was $162,400. "Our hypothesis is that income variation is the biggest driver ," she said. "I genuinely have a concern that KiwiSaver is amplifying existing inequality ... whether it's gender pay gaps or ethnic pay gaps ... all of that gets amplified because KiwiSaver is anchored effectively to PAYE incomes. "I think it really is time we started having that larger conversation." She said, now the scheme had been around for 18 years, it was appropriate to ask whether it was on track. "The answer is not really. It's a great system, it's had awesome uptake ... but if you step right back, are people on track to be able to self-fund a comfortable retirement? No is the answer." She said, if left unaddressed, the disparities could compound over time and lead to uneven retirement outcomes across the country. South Islanders led the way when it came to making contributions. In Marlborough, Otago, Southland Canterbury, 70 percent of members were actively saving, compared to 60 percent in Auckland and Northland. Mackenzie said Southland and Canterbury had very high proportions of members receiving full or partial government contributions. The full contribution is available to people who contribute at least $1042 a year. The proportion in Gisborne and Northland was very low, she said. "Research typically shows those two areas have the highest level of deprivation so again I think we think there is a lot of linkage between income levels and it's part of the reason why as a KiwiSaver provider we spend a lot of time and energy trying to help people around that government contribution point because that is one of the remaining incentives." She said the government contribution could make a material difference to people with lower balances. Mackenzie said the regional disparity could also highlight differences in economic conditions, as well as financial awareness. "It reflects New Zealand's two-speed economy, where some regions are doing better and activity contributing to KiwiSaver, while others lag behind. "Understanding these variation is crucial, it allows policy-makers and providers to tailor strategies that boost participation in lower contributing areas, helping ensure all New Zealanders have the opportunity to build long-term financial security." Nationwide, 40 percent were not regularly contributing. About 27 percent of people aged 16 and 17 were, even though the data was collected before there were matching employer or government contributions available for them. Mackenzie said contribution rates had not been materially affected by the economic downturn. "I think that's incredibly positive ... the percentage of our customers who are contributing has stayed fairly stable and I think that's a really good thing." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Scoop
3 days ago
- Scoop
Turning The Tide: A Call To Strengthen Our Retirement Future
Data from the latest ANZ KiwiSaver Insights Report underscores the need for urgent, bipartisan action to strengthen New Zealand's retirement savings system. The report – Turning the Tide – shows younger generations are reshaping New Zealand's retirement future but there are challenges, such as regional disparity, the gender retirement savings gap and a lack of contributions by around 40 per cent of members. 'We're at a pivotal moment in shaping our retirement savings system,' says Fiona Mackenzie, Managing Director, 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. '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. '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. 'Recent announcements to strengthen KiwiSaver by increasing contribution rates and extending employer contributions to younger generations are a welcome development. 'At the same time, changes to government contributions may reduce some of the incentives for participation. Ensuring long-term equity across the system remains an important consideration as these reforms evolve.' Key findings from the report show: Gen Alpha and Gen Z are contributing to KiwiSaver at encouraging rates, despite limited incentives, signalling a shift toward stronger long-term savings. 27% of 16–17-year-olds contributed in June–July, even without government or employer matches. A 15-year-old starting work at 21 could save $1.16M by age 65, or $689,000 if they buy a home at 35. Generational Contribution Trends Gen Z: 53% contributed, despite high youth unemployment. Millennials: ~60% contributed. Gen X: 72% of women and 68% of men contributed. Baby Boomers: ~60% contributed; 33% of pre-1946 members still contribute. Regional Engagement South Island regions lead in KiwiSaver contributions: Marlborough, Otago, Southland, Canterbury: Over 70% engagement. Auckland, Northland: Just over 60% engagement. Gender Savings Gap Males contribute more than females across all age groups except Gen Alpha. The gap grows with age, reflecting broader income disparities: Average balance: Men $38,206, women $32,133. At age 64, the gap reaches $17,000. Fund Selection Patterns Younger members increasingly choose growth-oriented funds: Gen Alpha: 64% in Growth Fund. Gen Z: 41% in Growth Fund. Millennials: 35% in Growth Fund. Digital Tools Boost Confidence ANZ's Fund Chooser Tool: Delivers ~4,000 monthly recommendations. Guides nearly half of all fund switches. 'The data around the savings habits of younger generations is particularly encouraging,' Ms Mackenzie says. '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. They aren't relying on NZ Super in the way older generations have. 'We like to compare ourselves to Australia, but if we aspire to a similar approach there is significant work to do building our national savings.' Ms Mackenzie says it's important that everyone – including employees and employers – are given certainty about KiwiSaver's future, so they have time to prepare. 'It is time for a proper conversation about the eligibility for superannuation, including the age of eligibility for NZ Super and whether means testing needs to be introduced at some future date. 'Well in advance of any changes to eligibility for superannuation, we need to be strengthening our savings, looking at how we get every young person signed up for KiwiSaver, and how we support those who are disadvantaged. Giving everyone time and certainty to plan for their life after 65 is critical.' ANZ Investments' Turning the Tide report aims to produce insights from customer data to help inform important conversations about KiwiSaver and help members understand the challenges and opportunities they face. This includes focussing into areas where people are disadvantaged and looking at innovative ways to help close the savings gap. Ms Mackenzie says better understanding where and why variations and disparities are occurring can help policymakers and providers tailor strategies to boost participation, particularly in lower-contributing areas. 'We all have a role to play here in how we work together to address these challenges over time in a way that earns public support. 'KiwiSaver is a powerful long-term investment in New Zealand's future prosperity. 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.' ANZ Bank New Zealand Limited Get on top of your money ANZ has been helping New Zealanders get on top of their money ever since we opened for business in 1840. We were New Zealand's first bank and today we have a large network of full-service branches and ATMs, and talented people across the country. We're passionate about helping our customers make their money work harder and equipping them to make better financial decisions. Whether it's travelling the world, buying a home, building a business, investing for the future or protecting their family's future, we use our financial strength and expertise to help make it happen. Through our sponsorships, our Staff Foundation and thousands of staff volunteer hours each year, we support causes that make a difference to New Zealanders.
The Spinoff
3 days ago
- The Spinoff
The cost of being: An event coordinator with ‘dead money frustration'
As part of our series exploring how New Zealanders live and our relationship with money, a full-time event coordinator explains where their money goes. Want to be part of The Cost of Being? Fill out the questionnaire here. Gender: Female. Age: 52. Ethnicity: New Zealand European. Role: Event coordinator, full-time. Salary/income/assets: I'm on $65,000 a year; my husband $110,000 a year. Assets: My paid-up 1998 MGF worth $7,000. Husband's motorbike worth similar. Wine collection worth $10,000. Our combined KiwiSaver is approximately $200,000. Husband's $300,000 endowment policy, pays out at 65. Our house is mortgaged at $500,000; currently worth $800,000. Biggest monthly expense? Insurances – nine of them! Two life, two medical, plus house, contents, car, motorbike and pet. Which one do you drop? We've shopped around for the best deals and managed to save around $480 a year, but a major source of dead money frustration! My living location is: Suburban. Rent/mortgage per week: Mortgage is $2,100 a fortnight for me and my husband. My niece rents an upstairs bedroom, bathroom and office at $200 a week including power and internet. Student loan or other debt payments per week: Two low interest credit cards: one $25 a week, one $15 a week. We use them, clear them monthly, reuse them. Typical weekly food costs Groceries: $200-250 including three nights of Bargain Box / Hello Fresh for two adults. Eating out: Maybe every second month as it's just so much more expensive now. Takeaways: $25-35 a week on Takeout Fridays. Workday lunches: Leftovers from dinner, sometimes there's lunches at either workplaces, and I buy sushi once a week – $15-20. Cafe coffees/snacks: Coffee machine at home and free plunger coffee at work, but I'll buy one or two takeaways a week and maybe one out over the weekend with a friend. Other food costs: Planning a small herbs, lettuce, citrus and tomatoes type garden in various leftover garden pots. Including compost, soil and plants, $150. Savings: $3,000 saved but it'll go soon on the motorbike's WOF – which needs to get done so it can be SOLD! (Husband doesn't use it enough to warrant the expense involved in keeping it.) I worry about money: Sometimes. Three words to describe my financial situation: Stable, always watchful. There's always enough to clear the bills, and the extra expenses that regularly pop up, like pets' dental work, WOFs, dentists, glasses, plumbing issue etc. Never enough for a proper holiday overseas, yet. My biggest edible indulgence would be: Chocolate. Hubby's is wine. In a typical week my alcohol expenditure would be: $50-70 a month on a new pink gin. Hubby $25 craft beer rigger weekly. In a typical week my transport expenditure would be: My car, $100 a month. Hubby's work vehicle means we usually carpool – I'll only take my car if our work schedules clash. Don't use my car at weekends much either. I estimate in the past year the ballpark amount I spent on my personal clothing (including sleepwear and underwear) was: Due to a losing weight journey, $0 until I reach my goal. Last year, maybe $500? My most expensive clothing in the past year was: New work shoes, $250. My last pair of shoes cost: See above. My grooming/beauty expenditure in a year is about: Regular periodontal and hairdresser visits, occasional haircare or skincare products = $2,800. My exercise expenditure in a year is about: $320 on yoga passes and a $240 annual swim pass. My last Friday night cost: $15 prawn rice paper rolls – my fave. And a $0 gin cocktail as ingredients were in-house. Most regrettable purchase in the last 12 months was: Timeless Summer Christchurch tickets – $245. (The tour was postponed.) Most indulgent purchase (that I don't regret) in the last 12 months was: Saxenda (weight loss medication) – $500 a month, started two months ago. One area where I'm a bit of a tightwad is: Tradesmen – I'll always get at least five tradie quotes before deciding. And whiteware – very happy to play retailers off against each other for the best deals. Five words to describe my financial personality would be: Mostly good, planner, occasionally extravagant! I grew up in a house where money was: Tight. After age nine, Mum was a solo parent. She started out as a cleaner, worked her way up, refurbished and landscaped the house over many years – much respect. But no extras, no holidays, sometimes not enough meat/protein – too many spaghetti pizzas! The last time my Eftpos card was declined was: Within the last month. Hadn't transferred over enough into the grocery account. In five years, in financial terms, I see myself: In a better paying job. Mortgage cut in half so a decent chunk leftover after every pay fortnight instead of living month to month. Able to save a lot more and travel overseas. I would love to have more money for: A proper holiday – minimum two weeks.
