It could take more than a decade for the KiwiSaver gender gap to close at current rates. Photo: Pixabay
The KiwiSaver gender gap may be closing, but there is still more work to do, providers say.
New data from Westpac shows men in its scheme have an average balance that is 16 percent - or $4431 - higher than women's.
That is down from 21 percent six years ago but based on current trends, the gap would take 15 years to close.
The gap is largest in the 30 to 39-year-old age group, often the stage of life in which women reduce their paid employment due to childcare commitments.
In 2019, the gap for this age group was 35 percent. Last year, it had reduced to 30 percent, or $5897.
The gap was the next largest in the 40 to 49 age group, at 24 percent.
Westpac general manager of product, sustainability and marketing Sarah Hearn said women statistically had a longer retirement to fund, because they lived longer on average, so it was particularly important for them to stay on track.
"There are some reasons women tend to trail men in their KiwiSaver balances, such as the gender pay gap and taking career breaks to care for children.
"While there is no silver bullet to resolve these issues, contributing at a higher rate, or the primary carer continuing contributions while on parental leave, can both reduce the gap.
She said Westpac's high-growth KiwiSaver scheme had been popular since it launched, but had attracted more men than women so far.
Higher-growth funds tend to be more volatile but deliver better returns over the long term.
"Research we shared at the time of launch suggests that unless you're nearing retirement or planning to use your KiwiSaver to buy a home, taking a more defensive KiwiSaver strategy could mean missing out on tens of thousands of dollars over several decades," she said.
"Across all age groups, as of February 2025, 25 percent of women have some or all of their investments in the growth or high growth fund, compared to 27.8 percent of men. The smallest gap is in the 40-49-year-old age group, where 28 percent of women have opted for the growth or high growth fund, compared to 29.8 percent of men."
She said women could also help improve their outcomes by having more awareness of their balances and actively engaging with their investments, as well as contributing extra amounts on a regular basis.
Another KiwiSaver provider, Generate, agreed a more conservative allocation could cost women over their investing lives.
It said people with smaller balances tended to invest more conservatively.
Generate adviser Kirstien Taylor said getting advice could help address that.
Almost 85 percent of Generate members had received advice, and more than 80 percent were in growth funds. For Generate, 55 percent of its growth fund was held by female investors versus 45 percent for male.
Taylor said women could also help their KiwiSaver balances by making contributions when they were on parental leave. Inland Revenue will match 3 percent contributions from paid parental leave.
Contributing to contribute when working part-time or self-employed could also help, she said.
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