Westpac NZ is encouraging teens to engage more with KiwiSaver, with new data from the bank showing only 31% of its 16- and 17-year-old KiwiSaver members contributed to their fund over the past year, and just 20% received employer contributions.
While not all teenagers this age will be working, Andrew Twidle, CEO BTNZ, Westpac NZ's KiwiSaver fund provider, says it's never too early to start thinking about getting started with KiwiSaver.
"If you're entering the workforce, even in a part-time capacity, starting to make KiwiSaver contributions is a good foundation for saving for the future. Retirement will obviously feel a long way off for teenagers, but buying a first home may be a future goal for many of them."
From 1 April, employers will be required to contribute to the funds of all 16- and 17-year-olds who are themselves contributing. Previously, this was only required for members aged 18 and over. However, under-18s won't automatically be enrolled in KiwiSaver - they'll need to apply directly to a scheme of their choice and get an approval signature from a parent or guardian.
This year is also the first time that 16- and 17-year-olds will be eligible to receive the Government contribution of 25 cents for every $1 personally contributed, to a maximum of $260.72. This means any KiwiSaver member who has contributed $1,042.86 between 1 July 2025 and 30 June 2026 will receive the full $260.72.*
"We'd love to see parents of teenagers talking to their kids about how KiwiSaver works and how they can get the most out of it. That includes looking at how much they've contributed over the past year and, if they're in a position to do so, topping the amount up in order to be eligible for the Government contribution," Mr Twidle says.
The 2023 NZ census showed that 45.1% of New Zealanders aged between 15 and 19 were in part-time or full-time work - up from 33.7% in 2013.
"Our own data indicates that at least 30% of 16- and 17-year-olds are likely to be in paid work and we really want to encourage this age group to engage more with KiwiSaver. If you do have a job and haven't yet signed up for KiwiSaver, take steps to do so. If you're already in a fund, check in on what type of fund it is, how much you've contributed over the past year and what sort of return it has provided.
"If you need help choosing a fund or want to learn more about KiwiSaver generally, the Government's sorted website has a lot of great resources to support both parents and teens.
"It's fantastic that the Government has extended its contributions to this age group and made it compulsory for employers to also make contributions.
"It's likely that uptake of KiwiSaver will now grow among 16‑ and 17‑year‑olds, so it could be worth policymakers also considering whether there are future opportunities to make the enrolment process simpler and more accessible for young people and their families," Mr Twidle says.
The Westpac data showed no real gender gap in 16 and 17-year-olds' KiwiSaver balances, with the average female balance in this age group $3,090, a fraction higher than males on $3,084.
"That discrepancy - even though it's small - is really interesting, as that's the only age group in our customer base where men don't have higher average balances," Mr Twidle says.
"We recently released data looking into the KiwiSaver gender gap and unfortunately it's something that starts early on, with higher average balances for men across all age groups over 18, and a 14% average KiwiSaver balance difference between men and women.
"The fact that you don't see that gap in 16- and 17-year-olds is great. We want to encourage all young New Zealanders to get started on their KiwiSaver journey and to think about what fund's right for them - given that ongoing gender gap, this is particularly important for young women."
Westpac research has showed that taking a more growth-focused KiwiSaver strategy earlier in life could mean saving an additional tens of thousands of dollars over several decades.
"Anyone who's saving for the long term - at least 13 years - and who's ok with seeing their balance go and up and down a bit during that period should be thinking hard about what type of fund they're choosing," Mr Twidle says.
"Take a few minutes to explore the Westpac KiwiSaver Scheme Fund Chooser, or equivalent tools, to learn more about different fund options and how these might fit with your long-term savings goals."
The Westpac KiwiSaver Scheme Growth Fund was recently named #1 performing KiwiSaver growth fund by MorningStar's December 2025 KiwiSaver Survey for 12-month returns to 31 December 2025. The Westpac High Growth, Balanced and Moderate funds were ranked #2 in their categories over the same period.**
