New KiwiSaver data released by the Retirement Commission has revealed the differences in balances between men and women has increased 5% in just one year.
Te Ara Ahunga Ora Retirement Commission, in a report released today, said the 2021 gender gap of 20% has widened to 25%.
It was most pronounced in the 18 to 25-year-old age bracket (23%) and 31 to 35-year-old age bracket (27%).
"This research builds a picture of the challenges women face to grow their KiwiSaver balances," said the Retirement Commission. (Source: 1News)
The data, collected by Melville Jessup Weaver actuaries, captured over three million KiwiSaver members - representing 94% of members.
"The data shows that within the period of one year the difference between KiwiSaver balances for men and women has increased, highlighting the continued gender savings gap," Retirement Commission director of policy and research Suzy Morrissey said.
"This research builds a picture of the challenges women face to grow their KiwiSaver balances. Analysis of the widening gap does not appear to be explained by fund choice, withdrawal, or suspension behaviour of women compared to men."
Morrissey said the widening of the gap at younger ages was particularly concerning due to the impact of compound interest.
"Money invested earlier will have time to grow, but if women's balances are lower than men's in younger life, they will likely remain lower."
Further analysis found the differences couldn't be explained by hardship withdrawals, first home purchase withdrawals or savings suspensions.
The average KiwiSaver balance at the end of 2022 was $27,379 - down 5.7% from 2021 - reflecting tough market conditions.
For males the average balance fell 3.2% to $31,496 and for females it fell 7.1% to $25,144.
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