The KiwiSaver gender gap narrowed from 17 percent in 2020 to 14 percent in 2025. File photo. Photo: RNZ / Hingyi Khong
Women are being told to take more risk with their KiwiSaver to help close the gap between their average balance and those of men.
Westpac said while the gender gap had narrowed from 17 percent in 2020 to 14 percent in 2025, men were contributing and saving more even though women live longer on average.
In the Westpac KiwiSaver funds, men had higher average balances in all age groups once people were over 18. The biggest gap was in the 30 to 39-year-old age group, where men had an average balance of $28,992 compared to $21,740 for women.
Westpac general manager of product, sustainability and marketing Sarah Hearn said part of the difference was the gender pay gap and time out of the workforce. But women were also more likely to be in less risky funds.
Men had 37 percent of their total balances invested in growth and high-growth funds, compared to 32 percent for women, who hold more of their KiwiSaver in moderate or conservative funds.
Higher-risk funds should deliver higher returns over time.
Morningstar data shows that aggressive funds have returned an average 9.5 percent a year over 10 years compared to 4.2 percent for conservative.
Hearn said women taking a more defensive strategy early in life could miss out on tens of thousands of dollars over the decades.
Earlier, Westpac estimated that the gap in outcomes between someone in a conservative fund and someone in a growth fund over 30 years could be more than $225,000 for a median earner on a total 6 percent contribution.
"Historically women have made more conservative fund choices, but if they're saving for the long term - at least 13 years - and are comfortable seeing larger up-and-down movements in their balance over time, I'd encourage them to consider what type of fund they're in," Hearn said.
She urged women to talk about their financial decisions. "We know men are really much more comfortable taking about numbers and money than women are… I think there's a great opportunity where we could be talking more about our KiwiSaver balances, our returns, the types of funds we're in and just having more conversations about money."
She said people should check the type of KiwiSaver fund they were in and make sure it was right for them.
"Make sure it's in line with your risk appetite and also the timeframe. I think that's the most important thing. we know that balances can go up and down over time. There can be volatility, but this is the long haul. We're all looking forward to retirement one day but in most cases it's a couple of decades a way. It's definitely the right time to take on a little bit more risk so that we can have our money working harder for us."
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