How Much Should I Have in KiwiSaver at 40?

Turning 40 can make KiwiSaver feel more real.

In your 20s, retirement can feel too far away to worry about. In your 30s, there may be first homes, children, career changes, and busy family life.

But by 40, many people start looking at their KiwiSaver balance differently.

The question becomes:

“Is this enough?”

The honest answer is that there is no single number that works for everyone.

A good KiwiSaver balance at 40 depends on your income, when you started, contribution rate, fund type, fees, investment returns, whether you used KiwiSaver for a first home, and what kind of retirement you want.

Why your balance may be lower than expected

Many people reach 40 and feel behind.

That does not always mean they have done anything wrong.

You may have withdrawn KiwiSaver for a first home. You may have spent years on a lower income. You may have taken time out of the workforce to raise children. You may have been self-employed and not contributing regularly.

The Financial Markets Authority publishes a KiwiSaver Annual Report each year based on provider statutory data for the year to the end of March. Its 2025 report covers the year to 31 March 2025.

The wider picture also shows KiwiSaver is now a major savings vehicle. The Financial Services Council’s 2026 State of the Sector update reported 3.4 million KiwiSaver members and NZ$141.6 billion in KiwiSaver funds under management.

For example, someone who bought a first home at 35 may have used most of their KiwiSaver as part of the deposit. At 40, their balance may look modest, but they may also own a home and be building equity.

That bigger picture matters.

What affects your KiwiSaver balance?

Your balance is shaped by several moving parts.

Your contribution percentage matters. Employees can generally choose rates of 3.5%, 4%, 6%, 8%, or 10% of their gross pay.

Your employer contributions matter too. From 1 April 2026, Inland Revenue says the default rate moved to 3.5% for both employee and employer contributions where the previous 3% default applied.

Your fund type also matters. KiwiSaver money is invested, which means your balance can rise and fall depending on the fund and market conditions.

A growth fund, balanced fund, and conservative fund can behave quite differently over time. Higher-growth funds may move around more, but may also provide stronger long-term growth potential. Conservative funds may be steadier, but may not grow as quickly over long periods.

Should you compare yourself to others?

It can be tempting to compare balances with friends or online averages.

But that can be misleading.

A 40-year-old earning $150,000 who has never used KiwiSaver for a first home will likely have a very different balance from someone earning $70,000 who withdrew for a deposit five years ago.

A better comparison is whether your current savings path is likely to support the retirement you want.

For example, a single person renting in Auckland may need to plan differently from a couple who own a mortgage-free home in a smaller town.

The number matters, but context matters more.

Use your KiwiSaver projection as a starting point

Your KiwiSaver annual statement can be a useful place to start.

The FMA explains that from April 2020, annual KiwiSaver statements show what a member’s savings may be worth at age 65. The FMA also notes the figures are not a guarantee, but an estimated projection designed to help members make decisions about fund choice and contribution level.

That projection can help turn the question from “what should I have now?” into “where am I heading?”

For example, a 40-year-old might not know whether their balance is good or bad. But if the projection suggests their retirement income may be lower than they are comfortable with, they can start looking at practical changes.

What can you do if you feel behind?

If your balance feels lower than you would like, there are several levers to consider.

You may be able to increase your contribution rate. You may review whether your fund type still suits your timeframe and risk comfort. You may make voluntary contributions when cashflow allows. You may also review fees and performance, while being careful not to chase last year’s top performer.

For example, a 42-year-old contributing 3.5% might increase to 4% or 6% after a pay rise. Another person may decide not to increase contributions yet, but set a reminder to review again once a car loan or credit card debt is cleared.

Progress does not have to be dramatic to be useful.

What if you are self-employed?

Self-employed people often need to be more deliberate.

There may be no automatic payroll deduction and no standard employer contribution in the usual sense. That means KiwiSaver can be easier to ignore.

A self-employed builder, consultant, or contractor in their 40s may need to set up regular voluntary contributions to keep building retirement savings.

The government contribution may also be relevant if they meet eligibility rules. Inland Revenue says the maximum government contribution is currently $260.72 per year, provided enough eligible personal contributions are made between 1 July and 30 June.

Conclusion

There is no perfect KiwiSaver balance for every 40-year-old.

The better question is whether your KiwiSaver settings match your goals, income, timeframe, and wider financial situation.

If your balance is lower than you hoped, it is not too late to make changes. Contribution rate, fund choice, voluntary contributions, and regular reviews can all help.

If you would like personalised guidance, speaking with an adviser can help you understand whether your KiwiSaver is on track and what adjustments may be worth considering.

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Disclaimer

This article provides general information only and does not consider your personal circumstances, objectives, or financial situation.