The Financial Services Council (FSC) has just released their latest KiwiSaver data, providing a snapshot of the state of New Zealand’s retirement savings scheme as of 31 December 2022. Read on for a breakdown of KiwiSaver’s current landscape.
Steady climb in membership numbers
As of December 2022, there were 2.94 million KiwiSaver members, marking a 0.77% quarterly increase. It’s a testament to the growing relevance of the scheme, as more New Zealanders recognise its benefits as a tool to secure their financial futures.
Slight downturn in funds managed
Despite the growth in membership, KiwiSaver funds under management saw a 5.7% reduction in the year to 31 December 2022, with a total of $80.28 billion managed. The FSC’s data doesn’t tell us why the amount dropped, but it may be attributed to a variety of factors – including market volatility and changes in investment strategies.
Noticeable dip in quarterly contributions
Quarterly contributions dropped significantly in December, amounting to $1.06 billion. This is significantly lower than the September 2022 figure of $1.9 billion and even lower than March 2022 ($1.3 billion), though in line with the June 2022 quarter ($1.07 billion). December quarterly contributions brought the total for the year to $5.39 billion.
About balances and contributions
With an average KiwiSaver balance of $27,300, there’s still much room for growth when it comes to securing a comfortable retirement for New Zealanders. The total average contribution per member in the year to 31 December 2022 was $1,842 – which may not be enough to fund the future lifestyle that many people are envisioning.
If you’d like to run your numbers, and check out if you’re on track, please don’t hesitate to contact us. We can look at how much you may need to save and the strategies you can put in place to get there, depending on your short-term needs and long-term goals. From choosing an appropriate fund for your risk profile through to selecting your contribution rate, we’re here to help.
Get in touch
By staying informed and making adjustments to your saving strategies, you can continue to work towards a financially secure retirement. And remember, we’re in your corner: let us know if you have any questions at all.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.