Mon Sep 23 21:07:19 UTC 2024: ## KiwiSaver Savings Surge Past $100 Billion Mark

**Wellington, New Zealand** – KiwiSaver funds have reached a new milestone, exceeding $100 billion in total savings for the first time. The Financial Markets Authority (FMA) reports a significant increase in KiwiSaver funds, reaching $111.8 billion as of March 2024, up from $93.6 billion the previous year.

This substantial growth is attributed to a rebound in global financial markets and the commitment of KiwiSaver members to long-term financial goals. The FMA highlights the scheme’s “coming of age,” as more investors embrace growth-oriented funds.

**Investor Behavior Shifts**

The report reveals a notable shift in investor behavior. Close to half of KiwiSaver funds are now invested in growth funds, a significant increase from previous years. This suggests a growing confidence in the long-term nature of the scheme.

**Withdrawals Rise Amid Economic Challenges**

Despite the strong growth, the report also reflects the impact of challenging economic conditions. Hardship withdrawals rose by 60% to $264 million, while withdrawals for first home purchases increased by a third to $1.2 billion. Overall, approximately $5 billion was withdrawn from KiwiSaver schemes, with $3 billion coming from those over 65.

**FMA Focuses on Future Goals**

The FMA aims to reduce the number of non-contributing members, currently at 1.3 million, and improve liquidity risk. The authority is working with providers to ensure they are prepared for potential financial volatility and downturns.

**KiwiSaver Fees Rise**

KiwiSaver fees increased by 19% to $789 million, driven by increased investment levels, buoyant markets, and more active fund management. The FMA emphasizes the importance of transparency regarding fees and services offered by providers.

**Looking Ahead**

The report provides a snapshot of the evolving landscape of KiwiSaver, showcasing both the continued growth of the scheme and the impact of current economic challenges. As KiwiSaver matures, the FMA is committed to ensuring the scheme remains a viable and secure investment option for all New Zealanders.

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