Time to #PressForProgress with KiwiSaver

April 2018

Last week, people across the world observed International Women’s Day – a day set aside to acknowledge and celebrate women’s achievements and campaign for gender equality.

In New Zealand, we have made significant advances in addressing gender imbalances. We’re ranked second in the world for the highest proportion of women with a tertiary education, and more women are working than ever before, making them critical contributors to our economic prosperity1.

Despite this progress, a key issue remains – women are still not earning as much as their male counterparts, facing a wage gap of about $17,000 a year2. Life events – like a change in relationship status; having children; re-entering the workforce – can further compound this. Along with the wage gap, women on average are likely to live longer than men, yet retire earlier3, meaning they could be left behind when it comes to securing a comfortable retirement. 

With this in mind, it’s more important than ever that women achieve financial security. The good news is nearly 1.4 million women are on the right track by being enrolled in KiwiSaver°. But with a $78,000 gender retirement savings gapˆ there’s plenty of work to do. In line with this year’s International Women’s Day theme, #PressForProgress, it’s time to take action to bridge this gap. Here’s how:

1. Make a plan

Consider your future goals – whether it’s preparing for a comfortable retirement or buying a first home – and look at how much money you’d like your KiwiSaver account to generate. Use our KiwiSaver account calculator to work out the projected amount you’ll have, the amount you’ll need, and any actions you may need to take to ensure you reach your goals.

2. Set up regular contributions

Setting up regular contributions can help you make the most of the government’s annual member tax credit. If a KiwiSaver member did nothing but contribute $21 dollars a week, which is the amount required to maximise the ‘free’ $521.43 each year, they could save up to $237,000 by the time they turn 65˜. Imagine what you could achieve if you made additional regular contributions as well?

3. Invest in the right fund for you

The fund you choose to invest in is one of the most important decisions you’ll make for your retirement savings. Use our risk profile tool to assess your risk tolerance and decide which fund is right for you.

4. Talk to an adviser

It can be helpful to seek advice to suit your unique situation and needs. Call our financial advisers at Wealth Direct on 0800 ANZ ADVICE (0800 269 238) for a free plan personalised to your financial goals.

5. Monitor your progress online

Log into ANZ Internet Banking or ANZ goMoney to keep track of your investment, anytime, anywhere. View your balance, track your performance and check what fund you’re invested in. You can also set up regular and one-off contributions to continue growing your savings.

Infographic text description follows

Close the gap - NZ women's progress to an #equalfuture

On average women retire earlier and have a longer retirement than men with less money

Women: $145,000 over 20.4 years in retirement

Men: $223,000 over 16.7 years in retirement

Women are likely to retire with $78,000 less than men, based on current savings patterns. 

Visit anz.co.nz/kiwisavercalculator to see if you're on track

¹ ANZ Wise Women Equal Future: Insights into gender differences in NZ, 2015.
² Data provided by Statistics NZ on average income. 
³ Data provided by Statistics NZ on life expectancy.
° FMA Annual KiwiSaver Report. Data to March 2017.
ˆ Data provided by Statistics NZ on average income. 
˜ ANZ internal KiwiSaver case study based on a 20 year old contributing $21 a week ($1,092 a year) and invested in our Lifetimes option. The member makes no additional employee contributions, receives no employer contributions and receives the full annual member tax credit of $521.43 each year. Visit anz.co.nz/kiwisavercalculator for the full set of assumptions. 

Important information

ANZ New Zealand Investments Limited ('ANZ Investments') is the issuer and manager of the ANZ KiwiSaver Scheme and the ANZ Default KiwiSaver Scheme (together, the 'schemes'). Important information is available under terms and conditions. Download the guide and product disclosure statement.