Women falling behind says survey

ANZ data shows more women are failing when it comes to saving for their retirement.

Worse still, data from ANZ Investments’ KiwiSaver members shows they’re falling behind before they reach the age of 20.

“The point at which the gap first appears is striking,” says Fiona Mackenzie, managing director of ANZ Investments.

“It’s minimal until age 18, but it jumps to 10 per cent at age 19 and widens from there.”

Across Gen Z members (born 1997-2012), the gap is already around 18.75 per cent, with average balances of $13,511 for men compared with $11,378 for women.

“This closely mirrors the overall gender gap of 18.55 per cent across all members of the three ANZ Investments’ managed KiwiSaver schemes,” Mackenzie says.

“The challenge here is clear, and it’s not an easy one to solve. The gender retirement savings gap is a result of a complex range of factors, including the gender pay gap, the age at which people enter paid employment, and the time taken out of paid employment to care for children or other family members.”

Fortunately, ANZ is seeing more female KiwiSaver members choosing more growth-focused investment options, reviewing their investment decisions, and contributing more.

Women now make up approximately 40 per cent of ANZ Investments’ High Growth Fund, which is up from 35 per cent when it launched in August 2023.

While high-growth funds can be more volatile in the short term, they generally deliver higher returns in the long term. However, Mackenzie cautions that not every woman should be in high-growth, as circumstances vary by person.

“We’re not saying every young woman should be in a growth-oriented fund. For example, if someone is close to buying their first home, a more conservative fund may be more suitable.

“We encourage women to take a few minutes to review their settings.”

Other practical actions women can take are to check their KiwiSaver fund choice and contribution rate.

The average balance for women in the three ANZ Investments’ managed KiwiSaver schemes is $33,785, compared with $40,053 for men – a difference of just over $6,200. Over time, compounding interest will only widen the gap.

While it may not seem like a lot now, it’s important to remember even small deposits and contributions can translate into thousands of dollars over the long term.

“While there are no easy fixes, these results indicate that targeted information and small, informed actions can make a meaningful difference over time,” Mackenzie says.

“Whether women are saving for their first home or a more comfortable retirement, checking in now can help close the gap in the years ahead.”