The Financial Markets Authority's KiwiSaver Annual Report for the year to 31 March 2026 puts the mean member balance at $40,340. That is an 11% rise from $36,349 a year earlier and the first time the average has cleared $40,000.
Membership stood at about 3.4 million. Total funds under management reached $138.8 billion. That pool is more than double the $62 billion the FMA recorded for the year to 31 March 2020.
Contributions hit a record $13.2 billion, up 8.2%. Net investment returns added $10.7 billion, well above the $6.4 billion booked in the prior year. More than 112,000 new members joined.
FMA head of investment management Emelie Jensert cast the milestone as a two-way duty. Providers need sound governance and clear disclosure. Members need to engage on contribution rates, fund choice and fees.
Commerce and Consumer Affairs Minister Cameron Brewer welcomed the growth and stressed competition. He pointed to elevated switching as evidence that members can exit underperforming providers.
"Competition is a key focus for this Government, and this report shows it working. Members switched funds 460,000 times last year and $7.4 billion moved between providers, up from $5.5 billion. If your provider isn't delivering, you can move, and hundreds of thousands of Kiwis did exactly that."
Growth alongside friction
The same report documents strains beside the headline average. Some 1.4 million members were not contributing regularly. Jensert said that group spans under-18s, retirees, parents on leave and people outside paid work. It does not simply show people who have quit saving by choice.
Total withdrawals were $6.8 billion. Age-65-and-over withdrawals rose 10.5% to $3.3 billion — nearly half of all withdrawals. The FMA said full withdrawals continue to fall, implying more retirees leave money invested rather than cash out entirely.
Hardship withdrawals jumped 19.8% to $531.5 million. That rise signals ongoing household stress even as aggregate balances climb. First-home withdrawals set a record: more than 50,000 people took out a combined $2.2 billion.
Fees, switching and fund flows
Members paid $978.2 million in fees, up 12.6% in dollar terms from $868.5 million the year before. Jensert said fees as a share of system funds under management have been flat for three years. The FMA will research provider fee trends in the year ahead and then consider next steps.
Absolute fee take often rises with assets even when basis-point pricing is stable. That scale dynamic keeps pressure on disclosure as balances grow.
Switching was elevated. Members switched funds 460,000 times. Transfers between providers totalled $7.4 billion, up from $5.5 billion. Growth funds drew the most switchers by count. Cash and conservative funds took the largest net inflows by value. Balanced and growth funds saw net outflows — a near-term cash preference worth watching.
Brewer urged members to check their fund, their fees and their provider.
"Check what fund you're in, check what you're paying, and don't be afraid to shop around. This Government's job is to keep that market competitive and well regulated so Kiwis have real choices."
