Retirement savings gap closing, led by women in their 40s - new stats

Women in their 40s are making the greatest inroads into the retirement savings gap, new data from Westpac shows.

Westpac NZ KiwiSaver released data in advance of this year's International Women's Day that shows that the gap between men's and women's KiwiSaver balances - known as the retirement savings gap - has decreased from 21% six years ago to 16% in 2024.

A detailed look at the data shows that the largest improvement was in the 40-49 age group. In 2019, men had KiwiSaver balances 33% higher than women. That gap was down to 24% in 2024.

Overall, men enrolled in the Westpac KiwiSaver Scheme had an average balance that is 16% - or $4,431 - higher than women. That’s narrowed from 21% in the six years since before the COVID-19 pandemic, but based on that trend it would still take 15 years for the gap to close. 

Westpac NZ General Manager of Product, Sustainability and Marketing, Sarah Hearn, said New Zealand women lived 3.5 years longer than men on average*, making it even more important for them to stay on track for retirement. 

“We need to make sure we don’t short-change ourselves and miss out on the retirement we want,” Ms Hearn said. 

“There are some reasons women tend to trail men in their KiwiSaver balances, such as the gender pay gap and taking career breaks to care for children.  

“While there is no silver bullet to resolve these issues, contributing at a higher rate, or the primary carer continuing contributions while on parental leave, can both reduce the gap.  

“It’s also important to regularly check your KiwiSaver fund choice and contribution rate to make sure you are getting the most out of your savings. 

“Taking five minutes to check out the Westpac KiwiSaver Scheme Fund Chooser and Calculator, or equivalent tools, will help you make decisions that put you on track for a more comfortable retirement.”  

Ms Hearn said the Westpac KiwiSaver Scheme High Growth Fund had been hugely popular since its launch last September, but had attracted more men than women. 

“Research we shared at the time of launch suggests that unless you’re nearing retirement or planning to use your KiwiSaver to buy a home, taking a more defensive KiwiSaver strategy could mean missing out on tens of thousands of dollars over several decades,” Ms Hearn said. 

“Across all age groups, as of February 2025, 25% of women have some or all of their investments in the Growth or High Growth Fund, compared to 27.8% of men. The smallest gap is in the 40-49-year-old age group, where 28% of women have opted for the Growth or High Growth Fund compared to 29.8% of men.  

“Our High Growth Fund could be a great option for New Zealanders who aren’t planning to withdraw their funds for at least 13 years, provided they’re comfortable seeing larger up-and-down movements in their balance over time.  

“We hope this year’s International Women’s Day theme of ‘Accelerate Action’ encourages more women to engage with their investments and to seek expert advice, if they’re not sure they’re on the right track.”  

Average annual gap across all ages 

*Stats NZ 

As of February, 2025, the Westpac KiwiSaver Scheme has 387,000 members, with $11.8bn funds under management. 

BT Funds Management (NZ) Limited is the scheme provider and issuer, and Westpac New Zealand Limited is a distributor, of the Westpac KiwiSaver Scheme. A copy of the Product Disclosure Statement is available at westpac.co.nz. The information in this release is not a recommendation or an opinion in relation to the Westpac KiwiSaver Scheme.