KiwiSaver Annual Report 2026 stresses the importance of good governance as balances pass $40,000

New Zealanders' retirement savings are growing and maturing, with the average KiwiSaver balance passing $40,000 for the first time.

The 2026 KiwiSaver Annual Report, shows more members are choosing growth funds and staying invested for longer

The report sets out why the way these funds are governed now matters more than ever.

The average KiwiSaver balance has passed $40,000 for the first time, in a year that also saw funds under management reach a record $138.8 billion, the Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko reported today in its 2026 KiwiSaver Annual Report.

The average member balance rose 11 per cent to $40,340 in the year to 31 March 2026. Funds under management grew 12.8 per cent, supported by $13.2 billion in contributions and $10.7 billion in investment returns. Now in its 19th year, KiwiSaver has more than doubled in size since 2020.

Membership reached 3.44 million, with 112,471 new members joining during the year. Contributions again exceeded withdrawals, by $6.4 billion, keeping the scheme in its accumulation phase.

More than 50,000 members used KiwiSaver to help buy a first home during the year, withdrawing a record $2.2 billion, combined. Members aged 65 and over accounted for almost half of all withdrawals, though fewer are now making a full withdrawal after 65. That suggests more members are choosing to keep their savings invested.

The report shows a continued shift towards growth investment, with growth funds now the largest single category at $68 billion. Fund switching and scheme transfers both rose over the year, reflecting a competitive market and members taking a more active role in their investments.

Head of Investment Management, Emelie Jensert, said the figures pointed to a scheme that continues to mature and play an important role in the financial wellbeing of New Zealanders.

“Passing $40,000 on average is an important milestone. For many New Zealanders, KiwiSaver will be one of the largest financial assets they hold, so it matters that members understand their choices and stay engaged over time. This year’s report suggests that more members are making active decisions about their investments, including by investing in growth funds, making provider transfers and remaining invested after age 65.”

“As KiwiSaver grows in scale, the expectations on providers also increase. Strong governance, fair conduct and clear disclosure are essential to ensuring that members understand what they are invested in and can make informed long-term decisions. Over the coming year, the FMA will also continue its focus on areas such as operational resilience, complaints, fraud, and fees because these all affect the outcomes members ultimately receive.”

Total fees deducted rose 12.6 per cent to $978 million, broadly in line with the growth in funds under management and have stayed at around 0.7 per cent of funds under management over the past three years. As outlined in the 2026 Financial Conduct Report, the FMA will conduct research on KiwiSaver provider fee trends during the current financial year.

During the past year, the FMA also examined the growing presence of private assets in KiwiSaver portfolios, providers' liquidity risk management, and sustainability-related disclosures. In May 2026, it issued updated guidance on sustainability disclosures. The FMA is also continuing its focus on KiwiSaver-related fraud, with fraud detection and prevention remaining a regulatory priority.

ENDS

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Background

The FMA is required to report each year on its main activities relating to KiwiSaver, and to provide a summary of the statistical returns from KiwiSaver schemes, under the KiwiSaver Act. The KiwiSaver Annual Report 2026 covers the year to 31 March 2026. It sets out headline statistics, the FMA's activities and areas of focus during the year, and appendices showing providers' return data. The report is available at KiwiSaver Annual Report .