The New Zealand Financial Markets Authority (FMA) has published its KiwiSaver Annual Report 2025, reporting that the scheme remained resilient despite economic volatility, with total funds under management rising 10% to NZD 123 billion. Growth was driven by NZD 12.2 billion of contributions and NZD 6.4 billion in net investment returns over the year to 31 March 2025. The report notes a continued shift towards higher-growth settings, with just under half of members now invested in growth-category funds and diversified funds still comprising most KiwiSaver assets. It also highlights areas for improvement, including a rising number of non-contributing members, with 30% of working-age members not contributing and 1.2 million active choice members currently not contributing, alongside a noticeable increase in hardship withdrawals. Total member fees remained stable at 0.7% of funds under management, and the FMA reiterated expectations that fees remain reasonable and that scale and efficiency gains are passed on to members, with default providers expected to engage with default members and support them on contribution options and planning tools.
New Zealand Financial Markets Authority 2025-09-10
New Zealand Financial Markets Authority releases KiwiSaver Annual Report showing funds under management up 10% to NZD 123 billion and non-contributors rising
The New Zealand Financial Markets Authority's KiwiSaver Annual Report 2025 indicates resilience in the scheme with a 10% increase in total funds under management to NZD 123 billion, driven by contributions and net investment returns. The report highlights a shift towards growth-category funds, concerns over non-contributing members, stable member fees, and expectations for default providers to engage with members on contributions and planning.