Kate shared that her KiwiSaver balance is approximately $15,000, while her husband’s balance stands at $120,000, causing her to feel anxious about the future. She has been predominantly out of full-time employment for 13 years, focusing on raising their children.

Similarly, Jess from Wellington faced a similar dilemma with a much smaller KiwiSaver balance compared to her husband’s, even after paying off her student loan. She expressed concerns about her financial security in the event of a separation, attributing the gap to the time she spent caregiving and working part-time.

Both women highlighted the challenges faced by caregivers in building their KiwiSaver funds and the impact on their financial well-being. They emphasized the need for mechanisms to address the disparity between partners’ contributions and the value of non-monetary caregiving responsibilities.

‘Non-monetary’ contributions

Actuarial data revealed a significant gap in average KiwiSaver balances between men and women, underscoring the need for a more inclusive approach to assessing financial worth. Financial adviser Rachelle Bland emphasized the importance of recognizing the value of caregiving roles and suggested redirecting additional contributions to the partner with a lower income to maximize KiwiSaver benefits.

Liz Koh of Enrich Retirement advised maintaining minimum contributions to qualify for government incentives, even during periods of lower earnings. She encouraged individuals to set long-term retirement savings goals and adjust contributions accordingly to compensate for income fluctuations.

Employers’ initiatives to support KiwiSaver contributions during parental leave and the government’s recent policy to match contributions during paid parental leave were identified as positive steps towards addressing gender disparities in retirement savings.