Closing the KiwiSaver gender pay gap

A recent analysis of nearly three million KiwiSaver accounts has highlighted that women save an average of 20% less than men – and are more likely to retire with less.

Experts suggest the gap is likely a result of several factors, such as the workforce gender pay gap, time out of paid work raising families, and the higher percentage of women in part-time work.

While the findings reflect wider societal inequities, there are still ways we can all work to increase our KiwiSaver funds today and prepare for a more comfortable retirement tomorrow.

Bump up your KiwiSaver contributions

If you are currently enrolled in the KiwiSaver scheme, your employer may already be contributing to your fund on your behalf.

While the default contribution is 3% of your salary, you can choose to increase this up to a maximum of 10%. And, contributing extra from your pre-tax earnings means you pay less tax overall.

Alternatively, you can contribute one-off payments of at least $100 at any time. This can be an ideal way to put your bonus or tax return to good use.

Consider using KiwiSaver to secure property

Another way to make your savings work harder is to put it towards a your first home deposit.

To meet the eligibility requirements, you must have been a KiwiSaver member for at least three years and must intend to live in the property.

Over time, the property is likely to increase in value – and the capital gains may exceed interest earned within your KiwiSaver fund.

Seek expert advice before making commitments

Whatever your plans, it’s important to seek advice from qualified professionals before making any decisions.

For further information on accessing your KiwiSaver funds, a registered financial adviser can help.

If you decide to access your KiwiSaver, want to know more about First Home Grants or for support to explore your lending options, contact your local Mike Pero Mortgage Adviser.