More than half of all adults have a private super scheme

More than half of all adults have a private super scheme – Media release

19 April 2017

Fifty-three percent of adults had a private superannuation scheme in the year ended June 2015, Stats NZ said today.

Private superannuation in New Zealand, released today, reports the median value of an adult’s (15 years and over) total private superannuation wealth was $10,000.

Private superannuation schemes include KiwiSaver and other schemes, both company-based and for the state sector. The figures are based on the household net worth statistics. The values exclude NZ Superannuation – the government pension paid to eligible people aged 65 or older.

KiwiSaver started in 2007 and about half of all adults (48 percent) are in a KiwiSaver scheme. Women were more likely to have a KiwiSaver scheme (50 percent) than men (47 percent).

“Just 8 percent of adults are in non-KiwiSaver schemes, such as the State Sector Retirement Savings Scheme or a company-based scheme,” well-being and housing team manager Litia Tapu said.

The median value of non-KiwiSaver schemes was $53,000 – six times more than the $8,000 median value of KiwiSaver schemes. That is to be expected since people have typically been in non-KiwiSaver schemes much longer than in the relatively new KiwiSaver. Non-KiwiSaver schemes had a greater difference in value for the sexes than KiwiSaver schemes. Men had a median value of $69,000 compared with women’s $42,000. Men were also more likely to have a non-KiwiSaver scheme than women – a contributing factor to the value gap.

Other factors contributing to the difference in men’s and women’s non-KiwiSaver savings are likely to include the gender pay gap and the effect motherhood has on pay. Lower pay for women, breaks in work to care for children, and lower contributions to super schemes all slow the accumulation of savings for women.

Private superannuation in New Zealand has more details.

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