Member contributions reached $1.98 billion in the three months to 31 March 2026 – the second highest quarter on record and just shy of the $2 billion high set in Q1 2025. Total contributions over the 12 months to 31 March 2026 reached $12 billion, with KiwiSaver funds under management now sitting at $124.5 billion, up 10.69% over the year.
That is a strong signal. Even in a tougher economic environment, New Zealanders are continuing to see KiwiSaver as an important part of their long-term financial future.
FSC CEO Kirk Hope says the standout is the strength of member contributions.
“This is a pretty positive set of numbers. New Zealanders are still contributing strongly to KiwiSaver, even with real pressure on household budgets.
“At nearly $2 billion for the quarter, it tells us people still see KiwiSaver as important and are continuing to invest in their future.”
The data also shows some pressure points. Net contributions were down compared with Q1 2025, driven by higher transfers out of FSC schemes and increased partial withdrawals across several categories, including illness, first-home buyers, members aged 65 and over, and permanent emigration.
Hardship withdrawals, however, moved in a more encouraging direction. After rising through 2024 and 2025, and peaking at $140 million in Q4 2025, hardship withdrawals fell 12% in Q1 2026. They remain 12% higher than Q1 2025, so it is too early to call this a trend, but the quarterly pullback may suggest some easing in household stress.
“Hardship withdrawals are usually a sign people are under real financial stress, so it is good to see them ease back,” Hope says.
“We should be careful not to overread one quarter, but after the pressure we saw through 2024 and 2025, a pullback is a welcome sign.”
While the last two consecutive quarters are encouraging, the picture is still evolving. The next quarter will give us a much clearer read on how households are responding to ongoing cost-of-living pressure, the Iran fuel crisis and the Government’s April changes to KiwiSaver contribution settings.
The broader story is that KiwiSaver is becoming more central to New Zealanders’ financial resilience, particularly for younger members. As home ownership has become harder and retirement expectations shift, KiwiSaver is increasingly one of the few practical tools many people have to build long-term assets.
That also raises the stakes for policy, provider engagement and member communication. The challenge is making sure New Zealanders can stay connected to saving, even when times are tight.
Key figures from the March 2026 quarter
Note: This spotlight is a quarterly snapshot for the KiwiSaver industry as at 31 March 2026. FSC members account for approx. 90% of funds under management.
Click here for the downloadable version of the March 2026 industry spotlight.