KiwiSaver funds have experienced their fastest growth in four years, surpassing the $100 billion mark, driven by a combination of investment returns and ongoing contributions.
The Financial Markets Authority (FMA) reported that KiwiSaver assets reached $111.8 billion by March, reflecting a recovery in global markets and the increasing commitment of savers to long-term financial goals.
Growth funds now represent nearly half of all KiwiSaver savings, marking a significant shift from conservative options over the past three years. KiwiSaver fees have risen 19 percent, in line with higher market activity, leading to a renewed focus on ensuring value for money in the fees charged by providers.
However, the report also highlighted a rise in withdrawals due to economic hardship, home purchases, and retirees drawing down their funds.
Total withdrawals reached $5 billion, including $3 billion from those over 65. Hardship-related withdrawals spiked by 60 percent, while first-home buyers withdrew $1.2 billion.
The FMA told state media it is working to address liquidity risks and reduce the number of non-contributing members, with 1.3 million participants not actively contributing to their accounts.
The FMA emphasized the importance of transparency around fees and the services provided to investors as KiwiSaver continues to evolve.
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