KiwiSaver 101
If you’ve ever opened your KiwiSaver statement and thought “I have no idea what any of this means”, you’re not alone.
As of March 2025, more than 340,000 New Zealanders were still sitting in default KiwiSaver funds — meaning they never actively chose a provider or investment fund. For most, it wasn’t a conscious decision. Life just got busy, and KiwiSaver quietly became something that “future me” would deal with one day.
But here’s the problem: that lack of engagement could be quietly costing you thousands of dollars over your lifetime — and for women, the gap is even wider.
KiwiSaver and Divorce: What You Might Not Know
Every year, around 8,000 couples in New Zealand divorce, and many more de facto relationships end. Under the Property (Relationships) Act 1976, any KiwiSaver contributions and investment growth made during the relationship are usually considered relationship property — meaning they can be split 50/50.
Despite that, about 75% of separating couples don’t even consider KiwiSaver balances when dividing assets. And since women generally earn less and take more time out of paid work for caregiving, they already retire with an average 25–37% smaller KiwiSaver balance than men.
After divorce, women’s incomes drop by around 29% on average, while men’s often rise — leaving many women struggling to rebuild savings for retirement.
So if you’ve gone through a separation or are rebuilding after one, this is your reminder: your KiwiSaver matters. It’s often one of your largest financial assets after the family home. And getting it working for you can make a huge difference to your future independence.
Default Funds: The Hidden Cost of “Set and Forget”
Right now, more than 341,000 KiwiSaver members are still in default funds — the ones automatically assigned by Inland Revenue when you don’t pick a provider.
These funds used to be conservative, meaning low risk (and low return). Since 2021, they’ve shifted to balanced, holding about half growth assets (like shares and property) and half income assets (like bonds and cash).
That’s a step up — but still not ideal for everyone.
If you’re in your 20s, 30s, or 40s and not planning to touch your KiwiSaver for decades, you could be missing out on years of compound growth by staying in a balanced fund.
If you’re wondering how much difference it really makes, here’s a simple example:
Most default KiwiSaver funds (the balanced ones) invest roughly half your money in growth assets like shares and property, and the rest in lower-risk investments like bonds and cash. Over the past five years, these funds have typically returned between 4.5% and 5.7% per year.
By comparison, growth funds—which usually hold 70% to 100% in growth assets—have averaged between 7% and 10% annually over the same period.
That 2–4% difference might not sound like much, but over 30 years it can add up to tens of thousands of dollars more in your KiwiSaver balance. It’s the quiet power of compounding — and a good reminder that the fund you choose today can shape the freedom you have later.
When to Consider Switching Providers
You don’t have to stick with the same KiwiSaver provider forever. In fact, switching can sometimes make a big difference.
You might want to look around if:
Your fund consistently underperforms compared to similar funds.
Fees are higher than other providers with similar returns.
You want ethical or sustainable investment options.
Customer service or online tools are lacking.
Your life circumstances or goals have changed.
Switching is free, quick, and easy to do online. Your balance transfers automatically — no need to start from scratch.
If You’ve Been Through Divorce or Financial Abuse
Rebuilding your financial foundation after divorce is hard — I know that firsthand. KiwiSaver might not feel like your top priority right now, but it’s one of the simplest ways to start regaining long-term stability.
Here are three easy steps to start taking control:
Log in to your provider account (or find out who your provider is via ird.govt.nz).
Check your fund type and contribution rate. If you’re in a default or conservative fund and retirement is decades away, consider switching to a growth fund.
Set a small automatic top-up, even $10 a week. It adds up, and it keeps your financial momentum going.
The Bottom Line
KiwiSaver isn’t just a retirement fund. It’s a tool for freedom — for future you.
Whether you’re 25 or 55, employed or self-employed, single or separated, it’s worth understanding where your money is going and how hard it’s working for you.
Don’t leave your financial future to default settings.
Take control of your KiwiSaver — because you’re worth it. 💪
