Are Kiwis on track for retirement?

What happens when the person charged with safeguarding our retirement future sits down with the boss of the country’s largest KiwiSaver provider?

Retirement Commissioner Jane Wrightson and ANZ Investments’ Managing Director Fiona Mackenzie recently joined forces to talk about what’s working, what’s not and how we can make the system fair for everyone.

With KiwiSaver now 18 years old, Jane Wrightson called it a “game changer” for encouraging private retirement savings in a simple and accessible way.

“It’s not the only thing people necessarily do to save,” she said, “but it’s a terrific way of setting and forgetting.”

Still, she noted concerns about low balances. “We think the balances are a bit low at the moment, and what we don’t know about that is whether people have lots of other stuff on the side, so the low balances are something we will keep an eye on.”

Fiona Mackenzie added that around 60% of ANZ Investments’ KiwiSaver members are actively contributing.

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Jane Wrightson highlighted that the groups most often missing out include those who are not in paid work, or are on low incomes, or self-employed.

Women, Māori, Pacific peoples, and the self-employed are the groups that are most at risk of being left facing systemic disadvantages.

“The women’s issue is really important,” said Jane Wrightson, “because the gender pay gap turns into the retirement savings gap,” referencing data from the Retirement Commission that shows the disparity in KiwiSaver balances begins as early as age 20 and grows over time, even with equal contribution rates.

Fiona Mackenzie agreed, noting that societal inequalities—like career breaks for caregiving—compound the issue.

“Even if we have got the same contribution rate, if we are living longer, our savings need to go a lot higher.

“It feels like inequality that exists in society or pay gets amplified in KiwiSaver.”

As balances grow so do the suggestions for further changes to KiwiSaver. But both urged successive governments to resist ‘tinkering’ with KiwiSaver i.e. small changes that don’t materially improve member outcomes. Instead, they believe a better approach would be one systemic review.

“By definition KiwiSaver is a multi-decade experience for our members,” said Fiona Mackenzie. ”To encourage them to keep investing, it’s important we avoid tinkering.”

“Trust is the big word,” added Jane Wrightson.

So, what should people do to help set themselves up for a comfortable retirement?

“Just start now,” said Jane Wrightson. “If you’re not contributing, start contributing if you can. Begin with your first pay packet and just leave it.

“If you can review your situation once a year, that’s good. But don’t check your balance every week, it’s too distressing.”

Fiona Mackenzie encouraged young women in particular to challenge themselves to take more investment risk, especially once they’ve moved past the first home buying stage.

“Make sure you are in the right fund, and if you are a twenty something female you have got a beautiful long investment horizon, particularly once you’re past that home buyer stage. So, challenge yourself to take a bit more risk, if you can personally get comfortable with that.”

They also spoke specifically about the gender retirement savings gap exploring why women retire with significantly less in their KiwiSaver accounts. They discussed the impact of career breaks, the gender pay gap, financial life shocks, and the importance of financial literacy and advice — especially for women navigating retirement with less financial resilience.

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They also explored how small, consistent actions can make a big difference over time. They highlighted the power of compound interest, the importance of building lifelong savings habits, and the value of starting early — even if it’s just a few dollars a week. They also discussed the role of KiwiSaver in helping young people get onto the housing ladder, and how financial education and open conversations about money can empower women to take control of their financial futures.