A report from the Retirement Commission shines a light on the gender gap in retirement savings – and how you can take small, confident steps to help close it.
Have you ever paused your career to look after family? Or taken a pay cut for more flexible hours? You’re not alone. Many of us put people before a pay cheque and while those choices make us who we are, they can also shape our financial future.
A report from Te Ara Ahunga Ora Retirement Commission found that, on average, men have around 25% more in KiwiSaver than women. It’s a big gap and one that tends to grow with age.
It’s not surprising when you think about it. Women are more likely to take time out to raise children or care for loved ones, and are statistically more likely to choose part time work. Over the years, those differences can really add up.
Let's look at some of the main points from the Retirement Commission report:
Putting yourself first in the moments that matter.
Your financial journey isn’t one big decision. It’s a series of smaller decisions that build over time and each is a chance to look after your future self.
Starting out:
Even if you’ve just started saving, every dollar counts. A little extra now can turn into a lot more later.
Career moves:
When you change jobs, it’s a good time to check in on your KiwiSaver account. Make sure your new employer has your correct details so your contributions continue without interruption. It’s also a good opportunity to review your contribution rate and consider whether you want to increase it – even a small increase can make a difference over time.
Parenting breaks:
Time off work doesn’t have to mean time off investing. Even small top-ups can help you keep momentum going and make sure you still get the government contribution. To receive the maximum government contribution, you need to contribute at least $1,042.86 each year - which works out to roughly $20 a week.
Home and security:
If you’ve used your KiwiSaver account to buy your first home, it can be beneficial to make a plan to rebuild your balance. Your home is part of your future, but so is your retirement fund.
Planning ahead:
Picture the life you want in retirement; time, freedom, choice. Then check in regularly to make sure your retirement fund is tracking towards that vision.
Helpful habits to help close the gap
Your KiwiSaver account is only one part of the puzzle. Here are a few everyday habits that can help you feel financially confident and independent.
Set and forget: Set up a regular top-up for your KiwiSaver account and let it run quietly in the background.
Build a buffer: Aim to keep one month’s expenses in a rainy-day fund. Then slowly build it up to three. It’ll help you plan for when things happen.
Build momentum: Alongside KiwiSaver, consider other investment opportunities. Managed funds offer flexibility and make it easy to invest regularly, with the ability to withdraw your money whenever you choose, while still helping you work toward long term goals.
While the new report may be tough reading, it’s also a reminder that change is possible. Starting as early as you can, focusing on the future and saving a little extra can make a real difference.
At Fisher Funds, our team can help you make a plan that suits your goals — one small, smart step at a time.
Read more tips in the Improving Women’s Retirement Income report. It’s well worth a look.
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