FSC report exposes retirement challenges for Kiwi women
As New Zealand marks International Women’s Day on March 8, the Financial Services Council (FSC) has released its 2025 report, “Insights and Trends: Women and Finance in New Zealand”, which revealed significant disparities in retirement savings between men and women.
The report highlighted that, despite higher financial literacy, Kiwi women end up with less retirement savings due to factors like lower earnings over their lifetimes and fewer contributions to retirement plans like KiwiSaver.
Challenges impacting women’s retirement savings
Women’s contributions to KiwiSaver have seen an increase in the minimum rate of 3% since 2021, a trend also observed among men, albeit to a lesser extent.
This gap in savings is exacerbated by the gender pay gap, part-time employment, and career breaks often taken for caregiving responsibilities.
As of June 2024, New Zealand's gender pay gap in financial and insurance services was 29.3%, according to the Ministry for Women. This gap, though comparatively low internationally, underscores deep-seated workplace inequities, including systemic barriers and unconscious bias.
According to the Retirement Commission, the retirement savings gap stood at 25% in 2024, a figure that has not improved since 2023.
Systemic disadvantages in retirement planning
“The current KiwiSaver settings disadvantages those who take career breaks, disproportionately affecting women who pause their earnings to care for or start their families,” FSC CEO Kirk Hope (pictured) said.
He stressed the need for strategic policy changes to enhance financial security for future generations of New Zealand women.
Government initiatives and future prospects
It’s reported that 58% of women feel unprepared for retirement, significantly more than men, with frequent worries about finances affecting their overall wellbeing. However, positive steps are being taken to address these issues.
Starting from July 2024, individuals on paid parental leave will have the option to continue their KiwiSaver contributions, with matching employer contributions of 3%.
FSC welcomed the recent statements from Finance Minister Nicola Willis regarding KiwiSaver and said it looked forward to collaborative efforts to tailor KiwiSaver to be more inclusive.
“It takes a combined sustained effort of sector and government to work towards delivering a dignified retirement for New Zealanders, regardless of gender,” Hope said.
In line with the FSC’s latest report, the 13th edition of the New Zealand Retirement Expenditure Guidelines by Massey University and Financial Advice New Zealand (FANZ) offers crucial insights into the financial behaviours and needs of retired New Zealanders, aiding financial advisers in navigating retirement planning complexities.
