Sean Henaghan, Chief Investment Officer
Having lived in Australia for over 20 years and contributed to their superannuation system throughout, I’ve seen firsthand the powerful benefits of long-term retirement saving. In Australia, the impact goes far beyond individual retirement plans — it helps fund infrastructure, support businesses, and strengthen the broader economy.
In New Zealand, we often focus on KiwiSaver’s personal benefits — and rightly so. But there’s a bigger story emerging alongside them: how KiwiSaver is becoming a powerful source of capital for the country’s long-term growth. In this article, I’ll explore both perspectives — how KiwiSaver supports individual New Zealanders, and how it contributes to the strength of the wider economy.
Most New Zealanders are familiar with the core benefits of KiwiSaver. But even these individual gains can contribute meaningfully to New Zealand’s long-term economic wellbeing.
KiwiSaver helps people build long-term savings and reduce future reliance on NZ Superannuation. Yet research shows that current savings levels — even when combined with NZ Super — may not be enough for a comfortable retirement. That makes continued contributions and good advice even more important.
Hundreds of thousands of New Zealanders have used their KiwiSaver investment to help buy their first home. It’s a practical way to turn long-term savings into real-world outcomes.
KiwiSaver helps create a long-term savings habit, and that has lasting benefits. Not only does this support individuals, but when more people save, it contributes to the overall stability and health of the national economy.
These personal benefits — from retirement savings to homeownership — are powerful and life-changing for many New Zealanders. But KiwiSaver capital has implications that go well beyond the individual. For example, while owning a home provides some security for the homeowner, residential property doesn’t directly drive national economic productivity — it doesn’t fund innovation, create exports, or support innovation.
That’s why KiwiSaver’s role as a long-term capital pool matters: it has the potential to help build a more prosperous, resilient New Zealand for everyone.
KiwiSaver isn’t just a retirement tool — it’s becoming an important source of long-term capital in the country. That capital has the power to support New Zealand’s infrastructure spend, fund business growth, and build economic resilience.
With more than $130 billion in assets under management (as at 31 September 2025, Morningstar), KiwiSaver represents one of New Zealand’s most important and growing sources of long-term investment capital.
As government budgets face ongoing pressure, KiwiSaver can provide vital funding for projects that benefit future generations — from transport to energy to innovation.
This shift is starting to take shape. While most KiwiSaver funds still allocate relatively modest amounts to unlisted or private investments, there is growing interest in using KiwiSaver capital to support New Zealand’s long-term growth.
Too often, promising Kiwi start-ups are forced to look offshore for capital. When they do, we risk losing not just the business, but the talent, skills, and tax revenue that go with it. By backing innovation here at home, KiwiSaver providers can help turn smart ideas into productive industries — and keep the value in New Zealand.
This is capital staying onshore — creating jobs, funding growth, and contributing to a stronger, more resilient economy.
The last few years have been a wake-up call for many New Zealanders who believed property was the only safe bet.
From late 2022 to 2025, national house prices fell 14.4% — and even more when adjusted for inflation (Oct 2022 to Sept 2025, National Median Price REINZ).
In contrast, the average KiwiSaver Growth Fund rose 43% (3 Years to Sept 2025 — Morningstar) over the same period. That’s a major performance difference.
But, with the average balance sitting at around $36,300 (at 31 March 2025), many Kiwis haven’t yet seen the full benefit.
The key takeaway? KiwiSaver offers diversification. That means spreading your investments beyond local property — into global equities, infrastructure, and sectors that perform well even when the local housing market stumbles.
For example, the average KiwiSaver Growth Fund has:
All of this provides valuable diversification — especially for those whose wealth is largely tied to property.
KiwiSaver is doing more than just helping individuals save — it’s emerging as one of New Zealand’s most important financial tools. Whether it’s supporting retirement goals, enabling homeownership, or fuelling long-term national growth, the benefits are real and far-reaching.
At Aurora Capital, we see this as a powerful opportunity — not only to help our members prepare for retirement, but to invest in what matters most for New Zealand’s future. That’s how we’re growing prosperity together.