KiwiSaver funds grow 18% in 2023 and total funds break through $100 billion

The KiwiSaver sector reported significant growth in funds under management (FUM) in KiwiSaver in 2023, with total FUM breaking through the $100 billion ceiling.  

The KiwiSaver sector reported significant growth in funds under management (FUM) in KiwiSaver in 2023, with total FUM breaking through the $100 billion ceiling.  

KiwiSaver FUM has increased 18.16% in the 12 months to 31 December 2023. This is due to continuing contribution growth and a significant bounce in financial markets. 

“This is great news for all KiwiSaver investors and the whole country. The collective focus of the sector is to help all Kiwis have a dignified retirement and in 2023 we have reached a number of important milestones,” said Financial Services Council (FSC) CEO Richard Klipin. 

“KiwiSaver is long-term investing, and the good years will be balanced by poor years. We need to be prepared and expect periods of volatility,” said Klipin.

KiwiSaver policy is important, and the recent report from The Centre of Sustainable Finance: Toitū Tahua contained relevant recommendations to remove barriers for KiwiSaver investment in private assets.

“With less than 2% of the KiwiSaver pie invested in unlisted assets in New Zealand, this demonstrates there are many policy issues to resolve in ensuring KiwiSaver is best in class and fit for purpose,” said Klipin.

The FSC recently welcomed Minister of Commerce and Consumer Affairs Andrew Bayly’s signal for a broad KiwiSaver review, which supports the FSC’s continued call for a comprehensive review of KiwiSaver and is seen in the FSC’s policy platform, Blueprint for Growth.

“Of course, there is much more work to be done,” said Klipin.

“These are important debates to have while the sector continues to help grow the financial confidence and wellbeing of Kiwis, and to assist future generations in retiring with dignity.”

ENDS