Early KiwiSaver withdrawals reached the highest level for any January on record with over $143 million taken out in home ownership and financial hardship withdrawals.
According to Inland Revenue (IRD), which tracks monthly KiwiSaver statistics, 6,390 KiwiSaver members withdrew $143.3 million during the month of January. That's an increase of 47.3% or $85.7 million, compared to January 2024 figures.
In January this year, 2,490 people withdrew $110 million for home ownership, and 3,900 people withdrew $33.2 million because of financial hardship.
Home ownership withdrawals in January were $12.7 million lower compared to December 2024, while financial hardship withdrawals decreased $37 million over the same period.
On a yearly basis, January 2025 first home withdrawals rose $61.8 million compared to January 2024, while financial hardship withdrawals climbed $13.5 million.
People are generally only able to withdraw money from their KiwiSaver when they reach the retirement age of 65.
However, people can apply for early KiwiSaver withdrawals on financial hardship and first home ownership grounds.
The latest IRD data shows KiwiSaver fund managers received $1.04 billion in January, with total Crown contributions to the scheme contributing $520,000.
The Government contributes 50 cents for every dollar a person contributes to their KiwiSaver, up to a maximum annual government contribution of $521.43.
To get the full government contribution, people need to have contributed at least $1042.86 to their KiwiSaver between the 1st of July and 30th of June each year.
As of January 2025, there were 3.3 million members enrolled in KiwiSaver with 4,134 new members joining that month.
KiwiSaver scheme transfers totalled 11,296 people in January. Scheme transfers occur when members want to move their KiwiSaver to a different provider.
The number of non-active members, which IRD tracks through those who opt out of the scheme as well as those who close their accounts, reached 772,544 in January, up 0.5% from December 2024.
KiwiSaver account closures came to 584,938 in January 2025, up 0.7% from 580,638 in December 2024. Reasons for KiwiSaver account closures include death, permanent emigration, retirement and serious illness.
By KiwiSaver scheme entry method, 654,748 members were in default allocated schemes, 212,579 were in employer nominated schemes, and 2,509,304 had actively chosen their KiwiSaver scheme.
Across the age bands, the 25-34 category still has the biggest lead in terms of member numbers with currently 740,508 members in that age bracket as of January 2025. That’s followed closely by the 35-44 category which has 723,052 members.
Since January 2024, the 25-34 category has decreased by almost 1,400 members while the 35-44 category has grown by almost 35,000.
KiwiSaver funds at $24 billion
Research firm Morningstar found KiwiSaver funds under management increased by $3.4 billion in the December 2024 quarter, and rose around $24 billion during the course of 2024.
ANZ is still the largest KiwiSaver provider when it comes to market share, with $21.9 billion in KiwiSaver funds under management and 18% market share.
ASB and Fisher Funds are currently in second and third place. ASB has market share of 15% and $18.3 billion, and Fisher Funds has a 14.8% market share and $18 billion funds under management.
The five biggest KiwiSaver providers in the country account for approximately 66% of assets in Morningstar’s database which is currently $81 billion dollars under management.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.