New Zealanders Tap KiwiSaver For First Homes, But Worry About The Future

More Kiwis are relying on KiwiSaver to finance their first home purchases, even as they worry about their financial futures.

The insights are in Canstar’s latest market research, which was conducted to find New Zealand’s favourite KiwiSaver provider. We’re proud to announce the winner, for the fourth year running, is Simplicity!

Simplicity, which last year became a default KiwiSaver provider, outperformed the market across all Drivers of Satisfaction, winning 5-star ratings for overall satisfaction, value for money and fees.

Jose George, Canstar New Zealand General Manager, said it was positive to see KiwiSaver being used for first home purchases. However, he noted this use shouldn’t detract from ongoing, regular contributions.

“KiwiSaver is certainly an excellent option for those who need support getting into a first home, and it is clear why those numbers are rising. However, it’s also important to remember KiwiSaver is designed to help support us in our retirement.

“As such, there is value in maintaining contributions to the fund even if you have drawn on it for other reasons. There are often ways to save on regular expenses, such as insurance or power, before pulling back on contributions to your KiwiSaver.

Mr George added, “Simplicity's high ratings with its customers show how its KiwiSaver funds deliver excellent value for money, and offer financial security for the future. We congratulate them for their repeated success in winning this award.”

Simplicity’s Managing Director Sam Stubbs said: "This is the highest possible endorsement of what we do, because it's based on direct feedback from KiwiSaver members."

As part of the survey, Canstar asked respondents if they were using KiwiSaver ‘primarily to buy a first home’. Over the last year, that figure has jumped 20% to 25%. The increase can be seen across most age groups, with nearly half of 18- to 29-year-olds now responding in this way, and a quarter of those in their 30s. The figure skews heavily female, with nearly a third of women (30%) using KiwiSaver to fund a first home purchase compared to just 17% of men. It is also weighted most heavily among those earning less than $80,000.

At the same time, the number of Kiwis worried about their finances in retirement has risen to 43%, from 41% a year ago. The worry is most pronounced among those in their 40s, with nearly half saying they are concerned.

The insights indicate that difficult market conditions are prompting more New Zealanders to draw on KiwiSaver for a home, despite longer-term worries about finances.

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