The gender retirement gap: why Kiwi women retire with less

As New Zealand celebrates International Women’s Day on 8 March, new insights from the Financial Services Council (FSC)’s ‘Insights and Trends: Women and finance in New Zealand’ 2025 report highlight a growing financial challenge - women retire with significantly less savings than men, largely due to career breaks and lower lifetime earnings. 

Despite being more financially literate than men, women contribute less to KiwiSaver than men. Since 2021, there has been an increase in the number of women who contribute the minimum 3% into their KiwiSaver. While there is a similar trend for men, their percentage change is much smaller.  

This trend, combined with the gender pay gap, part-time work, and career breaks for caregiving, has meant that the retirement savings gap, reported to be at 25% from Te Ara Ahunga Ora, The Retirement Commission in 2024, has remained fixed since 2023*. 

"The current KiwiSaver settings disadvantages those who take career breaks, disproportionately affecting women who pause their earnings to care for or start their families," says FSC CEO Kirk Hope. 

"It is evident that strategic policy changes can lay the groundwork for transformative, long-term benefits, ensuring greater financial security for generations of New Zealand women." 

FSC research reveals that 58% of women feel unprepared for retirement, compared to a lower percentage of men. Women are also more likely to worry about money on a daily or weekly basis, impacting their overall wellbeing.

“It’s encouraging to see the Government make steps to start to address this, with those receiving paid parental leave from July 2024 being able to choose to make KiwiSaver contributions, and Inland Revenue making employer contributions of 3%,” says Mr. Hope. 

“We welcome Minister of Finance, Hon. Nicola Willis’ comments made around KiwiSaver this month, and look forward to working closely on making KiwiSaver fit for purpose,” says Mr. Hope.

“It takes a combined sustained effort of sector and Government to work towards delivering a dignified retirement for New Zealanders, regardless of gender.”

Access the FSC Insights and Trends: Women and finance in New Zealand report here.

ENDS

*Sorted.org.nz (2024), ‘What can we do to fix the gender retirement savings gap’