The median value of New Zealanders’ KiwiSaver nest eggs was $13,000 for the year ended June 2018, Stats NZ says today.
This was a $5000 (62 per cent) increase from three years earlier.
The increase is made up of employee and employer contributions, and any investment gains or other contributions. KiwiSaver is still a relatively young superannuation scheme and median values should continue rising as the scheme matures.
Non-KiwiSaver schemes, such as the State Sector Retirement Savings Scheme and Government Superannuation Fund, have been around for a lot longer.
These savings schemes have a much higher median value – $73,000 for the year ended June 2018. The median value of these schemes was up 37 percent (from $53,000) since the year ended June 2015.
“KiwiSaver is a voluntary, work-based savings scheme that helps individuals save for their retirement. It was first introduced in July 2007 and is now the main superannuation scheme in New Zealand,” says wealth and expenditure statistics manager Emily Shrosbree.
“Superannuation schemes are one way that people save for retirement. Our final nest egg may also include assets such as property, money in the bank, and shares.”
Men have higher median KiwiSaver values than women across all age groups, except for people aged 15–24 years, where both men and women had a median scheme value of $3000.
“The median value of KiwiSaver trends upward for both sexes as they approach the traditional retirement age of 65 years. For the year ended June 2018, for men and women aged 55–64 years the median values were $30,000 and $23,000, respectively. In comparison, the median value of other schemes for men and women in that same age bracket were $105,000 and $71,000."
“Lower income and breaks in work can affect the build-up of retirement savings. This tends to affect women more than men.”
There has been little change to the proportion of men and women in KiwiSaver schemes across most age groups during the three years to June 2018, although men aged 15–24 years are now just as likely as women to have a KiwiSaver scheme.
Women aged 45–54 years are still more likely (59 percent) than men (52 percent) to be in a KiwiSaver scheme.