KiwiSaver providers say children are missing out on the opportunity to boost larger returns over time.
The number of people under 17 enrolled in KiwiSaver has more than halved over the past decade. In June 2015, there were 368,079 children in KiwiSaver. By last June, that figure had fallen to 169,409.
The decline follows the removal of the $1000 kick-start payment for new KiwiSaver enrolments in 2015.
“We want to see serious political discussion this election on KiwiSaver settings – starting with the roughly half a billion dollars a year the government spends on contributions,” Kernel founder Dean Anderson said.
Anderson said it was concerning that fewer children were opening KiwiSaver accounts.
“Right now that’s largely a tax credit flowing to the middle class. Redirected, it could have a far more meaningful impact for New Zealand.”
He said the funding could instead be targeted at younger people, allowing them to benefit from decades of compound growth over their lifetimes.
“Youth unemployment is now at 14.4% nationally – 18.7% in Auckland and 23.5% for young Māori. These are the rangatahi who most need a solid financial footing, especially in a world of AI, and the key to building one is getting them engaged early with their own dollars.”
“With the right settings – government seeding from birth, parent matching where families can, full engagement from 16 – the average 18-year-old could enter the workforce with $10,000 to $20,000 already behind them. Not a handout. A foundation. And we are seeing the demand, one of our most requested products at Kernel is for kids investing accounts, including kids KiwiSaver – which we have on our radar.”
Meanwhile, Sharesies said it hoped to boost participation by contributing 25 cents for every dollar added to children’s KiwiSaver accounts on its platform, up to a maximum of $100 during the 2026/27 contribution year.
The offer would apply to contributions made to the accounts of children under 16 between 1 July 2026 and 30 June 2027, with the payment deposited directly into the child’s KiwiSaver account between July and August 2027.
Sharesies co-founder Brooke Roberts said even small contributions early in life could have a significant long-term impact. She estimated that if $500 were invested in a KiwiSaver account at birth and left untouched until retirement at age 65, it could grow to about $26,500 in an aggressive fund.
“The earlier a child is invested, the harder time works for them. We want to help parents and guardians to take that step sooner and we’re backing that with our own contribution,” Roberts explained.
“The most valuable aspect of money is time, and so the earlier that people can use that time, the better for more opportunities to grow them into the future.”