The Women's Retirement Gap in NZ: Why Women Retire With Less and How to Close It

Women in NZ retire with materially less than men: KiwiSaver balances average $34,185 for women versus $42,664 for men, a gap of about 25%. Here is why it exists, where it is widest, and practical steps to close it.

The gap between what women and men retire on is one of the most stubborn patterns in New Zealand's savings data. It is not about women being worse savers. The data points the other way: women are slightly more likely than men to contribute to KiwiSaver, yet still finish with materially less ¹⁰. This guide sets out how big the gap is, why it exists, and the levers that can narrow it.

TL;DR: In the FMA's latest figures, women average $34,185 in KiwiSaver versus $42,664 for men, a gender gap of about 25% ¹. The gap is widest at ages 56-60, where women have around $20,842 less than men ². The causes are mostly structural, but contributions during leave, fund choice and couples planning together can all help close it.

How big is the gap between women's and men's KiwiSaver balances?

The headline number from the FMA's KiwiSaver Annual Report is a roughly 25% gap. As at 31 March 2025, men averaged $42,664 and women $34,185, a difference of about $8,479 ¹.

That average masks a wider gap at the point it matters most: the years right before retirement, when there is little time left to make up lost ground. The gap peaks at ages 56-60, where men average about $77,426 and women about $56,584, a difference of roughly 37%, or $20,842 ².

Figure (described): a line chart of average KiwiSaver balance by age band for men and women. The two lines sit close together at younger ages, then separate steadily through the 30s and 40s, with the gap widening to its peak at ages 56-60 just before retirement ¹². Source: FMA KiwiSaver Annual Report 2025 balance data.

The Retirement Commission reports a similar picture and a worrying trend in direction: the average KiwiSaver gender gap rose from 20% in 2021 to 25% in 2022, and has stayed around that level since ³. Women are also over-represented among members holding very low balances (under $10,000) across almost all age groups ³.

Why do women retire with less than men in NZ?

The gap is driven mostly by working life, not by saving behaviour in retirement. Three structural factors do most of the work.

• The pay gap. Because KiwiSaver employee and employer contributions are a percentage of pay, lower earnings mean smaller dollar contributions for the same percentage rate. New Zealand's gender pay gap was 5.2% in the June 2025 quarter, the lowest since the series began in 1998, down from 8.2% a year earlier ⁵. In dollar terms, median hourly earnings were $33.76 for women versus $35.62 for men ⁶. The gap has narrowed, but it has compounded over decades for women already near retirement.
• Career breaks and part-time work. Time out of paid work, often for caregiving, means periods with no employee or employer contributions, and part-time hours mean lower contributions while working.
• Longevity. Women live longer on average, so the same balance has to stretch over more years.

None of these is about women contributing at lower rates. The Retirement Commission notes the gap is driven by the pay gap, career breaks and part-time work rather than lower contribution rates, and that women are in fact slightly more likely to contribute than men ¹⁰.

How do career breaks and part-time work shrink KiwiSaver?

KiwiSaver grows on three inputs: your contributions, your employer's, and the returns on top. A career break pauses the first two for the whole period out of paid work, and part-time work reduces them while you are back.

The compounding effect is what makes this larger than it first looks. The default minimum contribution is 3% of gross pay from both employee and employer, rising to 3.5% from 1 April 2026 and 4% from 1 April 2028 ⁷. Missing several years of those contributions early in a career removes not just the contributions themselves but decades of potential growth on them.

A few features of the system soften, but do not remove, the effect of a break:

• You stay invested. Money already in your account keeps earning returns during a break, even with nothing going in.
• You can keep contributing voluntarily. There is nothing stopping personal contributions while you are out of paid work, which also keeps you eligible for the government contribution (more below).
• A formal savings suspension is optional, not automatic. Stopping work does not stop your account; if you are employed and want to pause employee contributions you apply for a savings suspension, which is worth understanding before you use one. Our guide on a KiwiSaver savings suspension covers the trade-offs.

The point is not that a career break is the wrong choice. It is that the cost of one to retirement savings is often invisible at the time and large by 65, which is exactly why it is worth planning for in advance.

Why does living longer make the gap worse for women?

Women in New Zealand live longer than men, so their retirement savings have to last longer. Life expectancy at birth is 83.5 years for females versus 80.1 years for males, a gap of about 3.4 years ⁴.

That extra time cuts two ways. A balance that already starts smaller also has to fund more years of spending. NZ Super helps level part of this: it is a flat-rate, universal payment that is the same for women and men. A single person living alone receives about $1,043.24 net per fortnight, and each member of a couple about $800.20 net per fortnight ⁹. Because women's private savings tend to be lower, many rely on NZ Super more heavily as a share of total retirement income, while needing it to stretch over more years.

Are women in more conservative KiwiSaver funds than they need to be?

Fund choice is one of the few levers entirely within a member's control, and being in a more defensive fund than your time horizon warrants can quietly hold a balance back over the long run. A conservative fund holds more cash and bonds and aims for steadier, lower returns; a growth fund holds more shares and aims for higher returns over time, with more ups and downs along the way.

For someone decades from retirement, a long stretch in a conservative fund "to be safe" can mean materially lower growth over a working life. For someone close to 65, more stability can be sensible. The right setting depends on time horizon and comfort with volatility, not gender. Returns are not guaranteed, and the value of investments can go down as well as up. What matters is that the choice is a deliberate one rather than a default left unexamined. Our guide on the wrong KiwiSaver fund walks through how to weigh conservative against growth for your stage of life.

What happens to a woman's retirement after separation or being widowed?

A relationship ending or a partner dying can reset retirement planning, often at an age when there is limited time to rebuild. On separation, KiwiSaver balances built up during the relationship are generally relationship property and can be divided under the Property (Relationships) Act, which is a significant moment to take stock of where a woman's own retirement now stands. Being widowed can change household income and the assets a surviving partner has to live on for the rest of their life.

These are situations where decisions made under stress can have long-lasting effects, so they are worth understanding before they happen. Our guide on a KiwiSaver relationship split covers how balances are treated and what to consider.

Smiths Financial does not provide legal advice on relationship property. This is general information only; please consult an appropriately authorised professional for your situation.

What practical steps close the gap?

There is no single fix, because much of the gap is structural. But several levers can narrow it, and they matter most when used early.

1. Keep contributing during leave. Voluntary contributions while out of paid work keep money flowing in and keep you eligible for the government contribution. From 1 July 2025 the government contribution is 25 cents per $1 contributed, up to a maximum of $260.72 a year (down from $521.43), and you need to put in at least about $1,043 of your own money in the KiwiSaver year to get the full amount ⁸. It is now also means-tested out above $180,000 of income ⁸. For someone on a career break with no salary contributions, claiming this top-up is more valuable, not less.

2. Review your fund choice for your time horizon. Make sure the level of risk matches how long until you need the money, rather than sitting in a default.

3. Lift your contribution rate when you can. Even a small increase, sustained over years, compounds. Members can elect rates above the default minimum.

4. Catch up after a break. When income resumes, a higher contribution rate for a period can help recover lost ground.

5. Check you are on track. Knowing the target makes the gap concrete. Our guide on how much you need to retire in NZ sets out balance-by-age benchmarks.

The table below summarises where each lever has the most effect.

Projections of any future balance are illustrations, not predictions, and actual results will differ.

How can couples plan so both partners retire well, not just one?

When one partner steps back from paid work, the household often keeps progressing financially while that partner's individual retirement savings stall. Planning as a couple, rather than two separate plans, can help share the long-term cost more evenly.

Some approaches couples consider:

• Topping up the lower-earning partner's KiwiSaver during a career break, including enough to claim the government contribution.
• Treating retirement savings as a shared goal, so the partner out of paid work is not the only one carrying the gap.
• Reviewing both balances together so the household sees the full picture rather than one strong balance masking one weak one.

This is general information, not a recommendation for any particular couple. The right mix depends on income, ages, time to retirement and goals. Personalised advice works through what fits your circumstances.

Frequently asked questions

How big is the KiwiSaver gender gap in NZ? In the FMA's latest KiwiSaver Annual Report, women average $34,185 versus $42,664 for men, a gap of about 25%, or roughly $8,479 ¹. The gap is widest near retirement, peaking at ages 56-60 where women have around $20,842 less than men ².

Why do women retire with less than men if they save just as much? The gap is driven mainly by lower pay, career breaks and part-time work rather than lower contribution rates. The Retirement Commission notes women are slightly more likely to contribute to KiwiSaver than men, yet still retire with materially less ¹⁰. Because contributions are a percentage of pay, lower earnings and time out of work compound over a career.

Does taking a career break stop my KiwiSaver? Not automatically. Your existing balance stays invested and keeps earning returns, and you can keep contributing voluntarily during a break. If you are employed and want to pause employee contributions, you apply for a savings suspension, which is optional. Voluntary contributions during a break also keep you eligible for the government contribution ⁸.

How much is the KiwiSaver government contribution now? From 1 July 2025 it is 25 cents per $1 you contribute, up to a maximum of $260.72 a year, down from $521.43 previously ⁸. To get the full amount you need to contribute about $1,043 of your own money in the KiwiSaver year (1 July to 30 June). It is means-tested out above $180,000 of income ⁸. Check current figures at ird.govt.nz.

Are women in the wrong KiwiSaver funds? There is no fund that is right or wrong by gender. What matters is whether your fund's risk level matches your time horizon. Sitting in a conservative fund for many years while decades from retirement can mean lower long-run growth, while more stability can suit those close to 65. Returns are not guaranteed and can go down as well as up.

What can I do to close the gap before retirement? Practical steps include contributing voluntarily during any career break, claiming the government contribution each year, reviewing your fund choice against your time horizon, and lifting your contribution rate when income allows. Couples can also plan together so both partners build retirement savings, not just the higher earner.

This article is general information only and is not personalised financial advice. It does not take into account your particular financial situation, goals or needs. Before acting, consider whether it's right for you and seek advice tailored to your circumstances. KiwiSaver is a long-term savings scheme; government contributions, contribution rates, withdrawal rules and tax (PIR) settings are set by the Government and can change, and figures are correct as at 30 January 2026. Returns are not guaranteed and the value of investments can go down as well as up. Craig Smith Business Services Ltd (FSP712931), trading as Smiths Financial, holds a Class 2 licence issued by the Financial Markets Authority and is a member of the Financial Dispute Resolution Service (FDRS). Written by Henry Smith, Financial Adviser; reviewed by Craig Smith, Principal Adviser. Last reviewed 30 January 2026.