FMA KiwiSaver report: average balance hits $40,340 as fees near $1b
The average KiwiSaver balance crossed $40,000 for the first time in the year to 31 March 2026, the FMA reported, as funds under management reached $138.8 billion and members paid $978.2 million in fees.
The Treasury published the Digital, Equipment and Change Assurance Framework on 23 October 2026. The guide operationalises Cabinet's April 2026 decision to improve assurance over high-risk data, digital, equipment and organisational change investments.
The New Zealand Treasury published the Investment Decision Assurance Policy on 13 October 2026. The framework consolidates the Gateway reviews and Te Waihanga's Infrastructure Priorities Programme into one investor-focused process effective 1 November 2026.
New Zealand's repeated swings between banning and reviving offshore oil and gas exploration have left Taranaki with falling gas reserves, an industrial exit, and new taxpayer commitments through the Gas Security Fund.
The average KiwiSaver member balance rose 11 per cent to $40,340 in the year to 31 March 2026, the Financial Markets Authority's annual report shows. Aggregate funds under management reached $138.8 billion. More than 112,000 new members joined a scheme now covering about 3.4 million New Zealanders.
Commerce and Consumer Affairs Minister Cameron Brewer framed the release around competition. Members switched funds 460,000 times and moved $7.4 billion between providers, up from $5.5 billion a year earlier.
FMA head of investment management Emelie Jensert stressed governance and disclosure as balances scale. She said the regulator will research fee trends before deciding next steps.
Members paid $978.2 million in fees, up 12.6 per cent. Jensert said fees as a share of funds under management have been stable for three years.
RNZ's read of the same FMA data put contributions at a record $13.2 billion and investment returns at $10.7 billion. Total withdrawals were $6.8 billion.
Withdrawals by members aged 65 and over rose 10.5 per cent to $3.3 billion — nearly half of all outflows. The number of full withdrawals at 65 continued to fall, which the FMA said pointed to more retirees leaving money invested.
Hardship withdrawals jumped 19.8 per cent to $531.5 million. More than 50,000 members took a record $2.2 billion for first homes.
About 1.4 million members were not contributing regularly. Jensert said that stock includes under-18s, retirees, parents on leave and people outside paid work, not only voluntary suspensions.
"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"
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.
Competition and regulation
Brewer said portability is working and urged members to check funds and fees. The Government's job, he said, is to keep the market competitive and well regulated.
"As average balances, as well as the overall balance, goes up, what we expect from providers is that they have good governance, they have clear disclosures and the members understand what they are getting out of KiwiSaver."
The FMA will research KiwiSaver provider fees and trends in the year ahead, then consider further steps.
Policy settings and distribution
Budget 2025 settings reshaped incentives. From 1 July 2025 the Crown match fell to 25 cents in the dollar, capped at $260.72, and was removed for taxable incomes above $180,000. Default employee and employer rates rose to 3.5 per cent from 1 April 2026, with 4 per cent due in April 2028 and a temporary opt-down to 3 per cent available.
Te Ara Ahunga Ora / Melville Jessup Weaver data at 31 December 2025 put the average balance at $41,286. Men averaged $47,452 and women $38,212 — a gap of about 24 per cent. Contributing members averaged $50,727 versus $19,553 for non-contributors.
KiwiSaver funds under management and average balance, 2020-2026
FUM has more than doubled since March 2020 as the scheme has matured.
FUM has more than doubled since March 2020, when Melville Jessup Weaver put assets near $62 billion and average balances near $20,500. The FMA's March 2025 report recorded $123.1 billion and an average $36,349.
The Government has introduced the KiwiSaver (First Home or Farm) Amendment Bill so workers in service tenancies — including farm workers, rural teachers and defence personnel in employer housing — can use KiwiSaver for a first home or farm.
What to watch
KiwiSaver is now a roughly $139 billion pool of household capital. Fee dollars near $1 billion a year are both a household cost and an industry revenue line. Switching of $7.4 billion disciplines providers. The next FMA cycle will show how members responded to the lower Crown match and the higher default rate, and whether fee research tightens conduct expectations as pots grow.
