Informed Investor’s latest KiwiSaver survey, conducted with InvestNow shows, while recent government changes to KiwiSaver have frustrated many investors, most remain committed to their long-term goals.
The 2025 Budget included a significant shift in the government contribution. Previously, KiwiSaver members received 50 cents for every dollar contributed, up to a maximum of $521.43 per year. This is now reduced to 25 cents per dollar, capped at $260.72. Those earning over $180,000 annually are no longer eligible for the contribution at all. The move is expected to save the government $2.46 billion over four years, but critics argue the impact on individuals is substantial, with opposition leader Chris Hipkins estimating an 18-year-old starting KiwiSaver today could retire with $66,000 less.
Unsurprisingly, the survey shows little support for the reduction. Almost half (48%) of respondents described themselves as “very unhappy” with the change, while a further 33% were “somewhat unhappy.” Fewer than 5% expressed approval.
Another change – raising the minimum employee contribution rate from 3% to 3.5% in 2025, then to 4% in 2028 – was met with greater approval. More than half of respondents said they were extremely satisfied with the move, with only 17% registering dissatisfaction. Many felt this adjustment would help deliver stronger balances at retirement.
One survey participant summed up the mixed mood: “It’s a bit rich of the government to reduce their contribution and increase business and individual contributions in a cost-of-living crisis. I suspect the impact will be more contribution holidays, which is bad for all Kiwis.”
Investor engagement remains high
Despite frustrations with policy changes, the survey highlights strong levels of knowledge and engagement. Ninety-five per cent of respondents said they were at least somewhat confident in their understanding of KiwiSaver, and many held higher balances than the national average. While Retirement Commission data puts the average balance across all age groups at $37,000, 44% of survey participants had more than $100,000 invested, with another 25% holding between $50,000 and $100,000.
Most (94%) had actively chosen their own provider. Performance, fees, and reputation were the main deciding factors, while ethical considerations ranked low at the provider-selection stage. Interestingly, when asked directly about the importance of ethics, 61% rated them as somewhat, very, or extremely important.
Contribution behaviour
Contribution patterns varied. Although the official minimum is 3%, soon rising to 3.5%, around 40% of respondents contributed above this, with 22% setting their own rates. Many of these were self-employed, and they were also the group most affected by the halving of government contributions.
One self-employed respondent commented: “I used to put in just enough to get the full government contribution. In my opinion this is no longer worth it. I have stopped my KiwiSaver contributions.”
Appetite for risk
The survey underlines New Zealanders’ willingness to embrace investment risk. Fifty-three per cent of respondents were in high-growth funds and 44% in growth funds, compared with a national trend towards higher-volatility options. The Financial Markets Authority reports between 2021 and 2024, the share of KiwiSaver members in high-volatility funds quadrupled from around 10% to over 40%.
Mike Heath, general manager of InvestNow, said the results were unsurprising: “Kiwis like growth assets and global equities. Increased interest in index funds and ETFs, particularly growth-oriented ones like the S&P 500 and Nasdaq, is driving this shift.”
Using KiwiSaver for housing and hardship
While KiwiSaver can be accessed for a first-home deposit, only 30% of respondents had done so, reflecting the survey’s older age profile. Nationally, nearly 35,700 people withdrew $1.2 billion for first homes last year, but in this survey 60% of participants were over 45.
Hardship withdrawals were rare among respondents, with just 1% having accessed funds for this reason. However, 40% had paused contributions at some point, often due to financial pressures, travel, or changing circumstances.
Wider investment behaviour
Nearly all respondents (97.5%) held investments outside KiwiSaver. ETFs were the most popular (72%), followed by managed funds (65%) and shares (60%). Around 30% owned rental property, and almost 20% invested in cryptocurrency. A smaller group (5%) reported more unconventional assets, including gold, silver, forestry, whiskey, carbon credits, and art.
This broad spread of investments suggests a financially literate and engaged group of New Zealanders, willing to diversify and explore alternative paths to building wealth.
A resilient outlook
Although policy changes have sparked dissatisfaction, the survey results point to a KiwiSaver community that is knowledgeable, adaptable, and committed to long-term retirement planning. For many, KiwiSaver remains an essential tool – but one increasingly balanced with other investment avenues.
Disclaimer: This information is provided by InvestNow Saving and Investment Service Limited (“InvestNow”). The information and any opinions in this publication are based on sources that InvestNow believes are reliable and accurate. InvestNow, its directors, officers and employees make no representations or warranties of any kind as to the accuracy or completeness of the information contained in this publication and disclaim liability for any loss, damage, cost or expense that may arise from any reliance on the information or any opinions, conclusions or recommendations contained in it, whether that loss or damage is caused by any fault or negligence on the part of InvestNow, or otherwise, except for any statutory liability which cannot be excluded. All opinions and market commentary reflect InvestNow’s judgment on the date of this publication and are subject to change without notice. This disclaimer extends to any entity that may distribute this publication. The information in this publication is not intended to be financial advice for the purposes of the Financial Markets Conduct Act 2013, as amended by the Financial Services Legislation Amendment Act 2019. In particular, in preparing this document, InvestNow did not take into account the investment objectives, financial situation and particular needs of any particular person. Professional investment advice from an appropriately qualified adviser is recommended before making any investment decision. All investments involve risk.
