KiwiSaver

New expenditure guidelines show how much New Zealanders need in their KiwiSaver to retire comfortably.

Kiwis who want the odd luxury in retirement need between $273,000 and $1.033 million on top of superannuation, according to the latest Retirement Expenditure Guidelines. For a more modest 'no frills' retirement, they would need between $118,000 and $181,000.

Financial Advice NZ chief executive Nick Hakes says advisers are more needed than ever to help New Zealanders get there.

Released by Massey University's Fin-Ed Centre, the guidelines are based on actual spending patterns of retired New Zealanders who receive superannuation. The report shows a weekly expenditure of $705-$1,780 depending on household type and location – well above what superannuation provides.

The savings gap
As of April 2025, a single person living alone receives $538.42 per week on superannuation. Total expenditure for the ‘no frills – metro’ category is $705.34. This trend extends to every type of household.

In short, everyone is spending more than superannuation would give them.

To bridge the gap, a one-person household would need to save between $71 – $218 weekly from age 25, depending on lifestyle and location. From age 50, those figures increase to $54 – $325 weekly.

A two-person household would need to save up to $406 weekly from age 25, and up to $1,230 from age 50.

At the same time, retirees are spending more on essentials. Property rates jumped 11.9% and household energy costs rose 9.1% – well above the 2.7% general inflation rate.
Hakes says that clients can often find these large numbers daunting, so they defer decision making until the last moment.

“That’s when clients and advisers say “I wish you had started sooner.” The key message is that the earlier people can start working with an adviser, the better financial position they’ll be in, and those big retirement numbers won’t be so daunting,” he told Good Returns.

“Year in and year out, the research highlights that relying on superannuation alone is not enough. Financial advisers can help calculate the savings that are needed, targets, and plans to reach it – and most importantly, how that adjusts over time as circumstances change.”

How far off-target are New Zealanders?

The report models a range of scenarios, and shows that someone who starts contributing to KiwiSaver in their 20s could still reach the ‘no frills’ target, even after a $75,000 withdrawal for a first-home deposit at age 35. However, those joining KiwiSaver in their 40s or 50s or who pause contributions for a few years have more of an uphill battle.

Hakes says that having a strategy is a starting point, but you also need to stick to the plan.

“Having the KiwiSaver is a good start, but there’s so much more to it,” he says.

“How it changes over time, whether you’re in the right fund, how the environment is impacting investment returns, etc. It’s so much deeper and broader than just “here’s the financial product.”

“We know through research that people with financial advisers are feeling more prepared and confident about retirement,” he adds. “One of the reasons we’ve signed the MOU with the retirement commission and the Sorted platform is to create a pathway from financial information to financial action.”

Bridging the advice gap

Household living costs are increasing, and KiwiSaver has seen record numbers of hardship withdrawals this year – $443.6 million, up by 51% on 2024. Hakes says that this is a concern for this industry, where withdrawals are seen as an absolute last resort.

Given the impact of a first-home deposit withdrawal, Kiwis can’t afford to take more out of their KiwiSavers early.

For advisers, there’s plenty of opportunity to educate, and a whole new generation moving towards the magical line of 65.

“Even millennials are well and truly in the workforce now,” Hakes says.

“If advisers who have been traditionally providing advice to clients who are just on either side of that 65, now is absolutely the time that intergenerational thinking needs to take place. That’s also about broadening the scope of advice, and that’s what adviser businesses should be thinking about – on a client level, a technical level, and on a business level.”

Consilium says it has seen a surge in advisers using its KiwiWRAP KiwiSaver scheme along with an increasing interest in personalised KiwiSaver advice from high-balance investors.

The KiwiWRAP scheme, available to advisers only, now has more than $200 million in funds under management.

"KiwiWRAP continues to attract investors with higher balances who are seeking tailored advice on their KiwiSaver investments. Over the past year, the number of KiwiWRAP accounts with balances exceeding $1million has nearly doubled, and the scheme’s average portfolio balance has increased from $174,000 to $188,000," the company says.

With more than 40 adviser firms nationwide offering the KiwiWRAP KiwiSaver Scheme, the market is signalling growing demand in an adviser-led KiwiSaver solution.

"Many financial advisers aren’t just recommending the scheme to their clients, they’ve invested their own KiwiSaver balances in it too."

Hamilton Hindin Greene financial adviser, Jeremy Simpson, says, “I’ve got a KiwiWRAP account myself. All our advisers have transferred their KiwiSaver to it.”

“It’s the best way to truly understand the scheme.”

That sentiment is echoed across the growing network of accredited adviser firms using the scheme to deliver better outcomes for clients, particularly those with significant balances and more personalised investment needs.

“This isn’t just a generic KiwiSaver scheme that advisers recommend, it’s one they have incorporated into their suite of advice solutions and are personally backing with their own retirement savings,” Consilium chief executive Louisa Yandle says.

“That speaks volumes about the confidence advisers have in KiwiWRAP’s flexibility, transparency and long term value as part of their business.”

With over 1,000 investors onboard, KiwiWRAP is carving out a niche in the market, giving advisers the tools to offer clients a KiwiSaver solution that aligns with their wider portfolio strategy.

Three companies have celebrated $2 billion milestones recently.

Tauranga-based First Mortgage Trust recently cracked the $2 billion funds under management.

FMT’s strongest growth has come from existing investors and borrowers sharing their positive experiences. “Most of our new investors come to us through word of mouth, from a friend, a family member, or someone they trust,” chief executive Paul Bendall says.

FMT's has more than 7,000 investors and it offers a retail fund, PIE fund, and a wholesale fund.

More on FMT here.

With little fanfare, except on social media, Kernel also surpassed the $2 billion in funds under management. This is quite remarkable growth as it celebrated the $1 billion mark in June last year. It took five years to get the first billion and just over a. year to get the second.

Milford also rolled out the $2 billion cake saying last week its KiwiSaver Plan now exceeding $2 billion in funds under management (FUM) through its independent financial adviser channel.

"This growth has been driven by strong adviser support, long-term investment performance, and a commitment to delivering high-quality service to the intermediary market," he company says.

This milestone sits within the broader context of Milford’s KiwiSaver Plan, which has now grown to $11.8 billion in total FUM, with the firm expecting to surpass $12 billion in the coming weeks.

“This achievement is a clear endorsement of the relationships we’ve built with independent financial advisers. It reflects not only our long-term performance, but the value created through strong partnerships and a clear focus on client outcomes,” Head of Wholesale Distribution Michael Robson says.

Milford’s Adviser Portal has been instrumental in supporting advisers to deliver efficient, transparent, and scalable KiwiSaver advice to clients. The portal enables approved financial advisers to:

● Seamlessly onboard and service clients
● Monitor investment performance
● Apply ongoing advice and admin fees
● Access comprehensive features to support ongoing engagement.

“We’re proud of the role our team and technology play in helping advisers deliver strong financial outcomes to New Zealanders,” Robson said.

The Financial Markets Authority says there has been a."dramatic" shift of KiwiSaver funds to riskier assets and one fund manager says that's a good thing.

In an Occasional Paper Series the regulator has observed a dramatic increase in the overall risk categorisation of KiwiSaver funds in recent years.

"The proportion of KiwiSaver invested in risk category 5 funds (high volatility) has quadrupled from around 10% in 2021 to more than 40% in 2024, with the proportion in risk category 3 funds (low to medium volatility) decreasing from 30% to 10% over the same period."

While it does not say whether that is a good or a bad thing it does try to understand the reasons for this shift.

Fisher Funds general manager KiwiSaver David Boyle says, "we think the increase in the amount of KiwiSaver funds invested in higher risk funds is a good thing for investors seeking to grow their retirement savings over the long term."

He says KiwiSaver has turned 18 this year and it – and investors – are maturing. He says there are six things worth noting:

1. Greater saver sophistication: consumers know more about the role of growth assets for a long-term savings scheme like KiwiSaver
2. Better education: Fund managers are responding to consumer interest and providing education on the risks and benefits of different fund types.
3. We’ve weathered storms: consumers have seen the impact of market events like the GFC, Covid and more recently the impact of tariffs. They have seen markets bounce around the generally rally and recover.
4. The democratisation of investing: the advent of platforms that allow investors to build their own portfolios allows providers to launch single sector specialist offerings that are often at the riskier end of the spectrum.
5. New asset classes: like our own private equity strategy increases risks, but offer the potential for better long-term outcomes when prudently introduced into diversified portfolios
6. Low risk choice abounds: Members still have the choice from many lower risk funds and savings options which may hold appeal for those decumulating funds as they enjoy their retirement years.