Why women retire with less – and how to change that now

When Sarah* returned to New Zealand at 46 after a marriage breakup, she felt overwhelmed. With a small overseas super balance and less than 20 years until retirement, she wondered if starting KiwiSaver so late was even worth it. What she discovered is a lesson many women can take to heart: it’s never too late to take control of your financial future.

The reasons behind the gap
It might not be a surprise that women in New Zealand often reach retirement with smaller KiwiSaver balances than men. Men’s KiwiSaver balances are on average 25% higher than women, and this gap widens to 37% in the years just before retirement¹ – that can mean a difference of tens of thousands of dollars.

The Retirement Commission’s latest analysis confirms what many have long suspected: the gender savings gap isn’t caused by one single factor, but by a series of life stages and structural challenges that build up over time. These can include:

• Education and training: lower participation in higher-earning fields
• Work: more time in part-time, casual, or lower-paid roles
• Parenting and caregiving: time out of the workforce reduces contributions
• Relationship changes: divorce or separation can leave women financially vulnerable
• Housing tenure: women are less likely to own homes, adding pressure in retirement
• Longevity: women live longer on average, so their savings need to stretch further

Overlaying all of this is the ongoing gender pay gap, which still sits at 8.2% in New Zealand². Individually, these factors may not seem significant, but over decades they can compound – leading to fewer contributions and less investment growth in women’s KiwiSaver accounts.

Turning limited years into opportunity
KiwiSaver isn’t a savings account; it’s a long-term investment. Even if you only have 15 to 20 years until retirement, that’s still enough time for your KiwiSaver contributions to make an impact. The key is being intentional: contributing regularly, reviewing your fund choice, and tracking your progress against realistic goals.

For many women, KiwiSaver isn’t just about retirement – it can also support things like:

• Buying a first home – solo or with a partner or friend
• Regaining financial independence after years out of the workforce
• Building a buffer for a longer or ‘more frills’ retirement

It’s not about catching up perfectly with decades of missed contributions. It’s about making the years ahead work as effectively as possible.

Why you should pay attention now
The good news is that policy makers are taking note. The Retirement Commission has recommended measures such as extending government contributions for parental leave, making employer contributions easier to administer during caregiving breaks, and improving equity for sole traders and lower-income earners.

But while these changes are being debated, individual women can still take action right now by joining KiwiSaver, seeking financial advice, and setting a strategy that works for their life.

Getting good advice matters
Starting KiwiSaver later in life can feel daunting, but expert guidance helps cut through the complexity. Many people don’t realise that KiwiSaver advice is often free, can be personalised, and is widely accessible.

Talking to a qualified KiwiSaver adviser can help you:

• Choose the right fund for your timeframe and appetite for risk
• Maximise employer and government contributions (subject to eligibility)
• Adjust your strategy as circumstances change
• Plan around major life events, such as separation or downsizing a home

Without advice, it’s easy to end up in a fund that’s too conservative, or to miss out on contributions that could make a meaningful difference over time.

Take control of your future
The gender gap in retirement savings is real, but it doesn’t have to define your future. By starting a KiwiSaver account or upping your contributions (even later in life) and seeking advice to make smart choices along the way, you can build more confidence in your financial journey.

At Milford, we’re focused on helping our clients build long-term wealth and plan for the retirement they deserve. If you’re starting KiwiSaver later in life, the most important step is simply to begin, and not to do it alone.

Talk to a Milford KiwiSaver Adviser today and take the first step toward closing the gap and shaping the retirement you want.

^{* Name changed for privacy
¹ New report reveals why women retire with less – and how to fix it
² Gender pay gap narrows to lowest on record}