First-home withdrawals hit record levels, average KiwiSaver balance passes $40,000 - FMA report
New Zealand's Financial Markets Authority reports that average KiwiSaver balances have surpassed $40,000 for the first time. However, the report also highlights a record surge in withdrawals, driven largely by first-home buyers and those facing financial hardship.
Why it matters
The data reflects shifting economic pressures on retirement savings as younger generations prioritize immediate housing needs over long-term financial security.
The average KiwiSaver balance has passed $40,000 for the first time and that figure is expected to increase over time, according to New Zealand’s financial markets regulator.
The Financial Markets Authority - Te Mana Tātai Hokohoko (FMA), released its annual KiwiSaver report on Thursday, covering the year to March 31, 2026.
FMA head of investment management Emelie Jensert told interest.co.nz that for many people, KiwiSaver will be one of the largest financial assets they hold in their lifetime.
Jensert said when it came to the average KiwiSaver balance, which increased to $40,340 compared with $36,349 a year earlier, you would expect balances to increase over time as more people join KiwiSaver and others remain invested in KiwiSaver for a longer period of time.
Withdrawals for first home purchases reached a record high this year
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