KiwiSaver Hits $100 Billion: Record Growth & Key Insights from the 2024 Annual Report
Source: Financial Markets Authority, & Johnson, S. (2024). KiwiSaver Annual Report. In KiwiSaver Annual Report (pp. 2–4) [Report].
KiwiSaver, New Zealand’s workplace retirement saving scheme, has hit a major milestone in its 17th year: surpassing $100 billion in funds under management. The 2024 Financial Markets Authority (FMA) Annual Report highlights that KiwiSaver now manages $111.8 billion for over 3.3 million members, reflecting a 19.3% growth year-on-year.
Key takeaways from the report include:
- Investment returns surge: With $13.1 billion in net investment returns, 2024 saw a major rebound from last year’s losses.
- Withdrawals and contributions: $5 billion was withdrawn, with $3 billion by those over 65. First-home buyers withdrew $1.2 billion. Meanwhile, total contributions reached $11.2 billion.
- Fee landscape: Fees climbed by 18.9% to $789.6 million, though fees relative to total funds have declined over time, reflecting efficiency improvements.
Source: KiwiSaver-Annual-Report-2024.pdf (fma.govt.nz)
The KiwiSaver scheme continues to evolve, marking significant growth not only in funds but also in member engagement. The report emphasises the importance of focusing on long-term returns and professional fund management, signalling the maturity of the scheme as a core part of New Zealand’s retirement landscape.
KiwiSaver appears to have a bright future as it ages, with significant impetus coming from increases in investment returns and participation. More than ever, there is a need to educate members about fund selection and maximise long-term savings. In the long run, the programme is expected to assist New Zealanders in achieving financial independence and providing safe retirements. KiwiSaver is not merely a financial instrument but also an essential part of the nation’s economy, with an increased emphasis on risk management and member involvement.
Read the full report here: KiwiSaver-Annual-Report-2024.pdf (fma.govt.nz)
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Photo credits: Financial Markets Authority, and Research IP
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