Financial conversations NZ women should be having at each life stage

Our latest Retirement Commission research makes it crystal clear: women in New Zealand retire with significantly less money than our male counterparts. Men’s KiwiSaver balances are on average 25% higher than women’s, a gap that increases to 37% for those aged 56–65.  

Although the gender pay gap plays a big role, it’s not just about that. Women are also much less likely to talk about money; a recent ANZ survey found 60% of women will discuss almost anything except their financial future.  

Talking about money boosts confidence, reduces shame and normalises financial ambition. Here are some prompts to spark conversations with your female friends, sisters, aunties and daughters at each life stage. 

In our 20s: Are we building a good foundation? 

Your 20s are a powerful time to make financial change. Every dollar invested now has decades to grow. 

For example, by investing $2000 annually from age 18–41, your money could grow to seven times what you put in – to $362,562 by age 65. In contrast, if you started at 42, your money could double to $100,305 by 65. 

Financial education is powerful at this age, but women are less likely to access it. Point your female friends towards courses, podcasts, advice or Sorted to help build their knowledge. Investing in yourself at this age will pay huge dividends! 

Ask a friend: Do you invest? Remind them that KiwiSaver is an investment and every dollar they put in can benefit from compounding interest. 

Do this week: Boost your own KiwiSaver contributions by 1%.  

In our 30s: How are we navigating money, career and family?  

Welcoming a child is likely to mean some big changes to the family finances. Women often take a financial hit at this stage of life.  

I’ve seen this in my personal life – I recently took a year of parental leave and it’s been helpful to have some open conversations to make sure I’m looking after my financial future. For me, this has meant making extra contributions to my KiwiSaver and investing into my Sharesies account, even when money feels tight. 

The motherhood penalty lasts longer than you might think – taking a career break can reduce earnings for years afterward. A 2023 Canadian study found a 49% drop in mothers’ earnings in the year of childbirth, with a persistent 34% penalty 10 years later.  

This isn’t to say staying home is the wrong decision – it’s just important to go in with your eyes wide open. Talking about the long-term impacts with family or friends can be helpful. If you’ve got young children, this can be a great conversation to bring up in your coffee group. 

Career-wise, it’s important to know your value at this stage of life. Are you being paid what you’re worth? Do some research to build a clearer picture of the value you provide to your employer. If you decide you’re not being paid fairly, ask for a payrise or consider moving to a better paid role. 

Ask a friend: How did you and your partner organise your finances when you weren’t in paid employment? 

Do this week: If you’re on parental leave, check that you’re contributing at least $1043 to KiwiSaver annually, in order to qualify for the $260 government contribution.  

In our 40s: Are we accelerating our strategy? 

You’ll probably reach your peak earning potential in this decade, so it’s a great time to speed up your saving. 

This could mean maximising your KiwiSaver contributions, reviewing your investments or boosting your savings account. You’re still a while away from retirement, so check you’re in a KiwiSaver fund that fits your goals.  

This is also the age at which you’re most likely to face divorce, which we know can wreak havoc on women’s finances. If this is you, make sure you consider all relationship property in the breakup, including KiwiSaver.  

Ask a friend: Have you calculated how much you’ll have in KiwiSaver at retirement? What if you upped your contributions? 

Do this week: Crunch the numbers – can you afford to increase your contributions by 1, 3, 5 or even 7%? 

In your 50s: How are we planning in this final stretch? 

This is the time to fine-tune your financial strategy and prepare for the transition to retirement.  

Many women take on unpaid caring roles at this age. The gender pay gap also peaks in our 50s, so even though the parenting load may have eased up by now, there are still a few forces working against us.  

Although some of this is outside your control, it’s important to keep your eyes firmly fixed on your goals. Have a think about the lifestyle you want in retirement and whether your finances align. If there’s a gap, consider how you’ll either up your savings or adjust your lifestyle plans. 

Ask a friend: How do you see yourself living in retirement? Do you have a plan for how you’ll afford it? 

Do this week: Use the Sorted retirement navigator to see how it could play out.  

At any age: Don’t panic, you’ve got this 

The gender retirement gap is real, but there are steps you can take now to improve your future. 

Remember:  

• Talk about money. The more conversations we have, the more confident we feel. 
• Start where you are – it’s never too early or too late.  
• Small changes matter – even $20 extra saved or invested per week counts. 
• Get help when you need it. Advisers, free mentors and tools are available to support you.