KiwiSaver has achieved a major milestone, reaching over $100 billion in funds under management by the end of March 2024. The scheme grew by 19.3% from the previous year, reflecting strong investment returns and a steady flow of contributions from members, employers, and the government.
The growth of KiwiSaver has been driven by the increasing number of people enrolled—around 3.3 million individuals, representing 62% of New Zealand’s population. The investments are shifting towards growth-oriented funds, with 46% of the funds now placed in higher-risk, higher-return portfolios. This shift is seen as a reflection of the growing comfort among investors, particularly younger ones, with the long-term nature of KiwiSaver, aiming to maximise returns for their retirement.
For business owners and employees in New Zealand, this milestone signifies the growing importance of KiwiSaver in securing future financial stability. Employers, responsible for contributing to their employees’ KiwiSaver funds, play a critical role in helping build these retirement savings. As funds under management increase, there is potential for lower fees due to economies of scale, which could benefit both businesses and employees.
This growth also suggests that KiwiSaver will continue to be a key tool for individuals planning for retirement, making it vital for business owners to ensure they support their employees in making informed decisions about their KiwiSaver options. Employees, meanwhile, should consider reviewing their fund choices to align with long-term financial goals, especially as more growth funds become available.
