Here’s a startling fact: a single financial decision could cost women over $200,000 in their lifetime. But here's where it gets controversial—experts are now urging women to take more risks with their retirement savings, specifically their KiwiSaver accounts, to bridge the growing wealth gap between genders. Sounds risky, right? But is it riskier than missing out on potentially life-changing returns?
A recent analysis by Westpac reveals that while the gender gap in KiwiSaver balances has narrowed from 17 percent in 2020 to 14 percent in 2025, men still outpace women in contributions and savings—despite women living longer on average. And this is the part most people miss: in every age group over 18, men consistently hold higher average balances. The most striking disparity? Among 30 to 39-year-olds, men’s average balance is $28,992, compared to just $21,740 for women—a difference of over $7,000.
So, what’s driving this gap? Westpac’s general manager of product, sustainability, and marketing, Sarah Hearn, points to two key factors: the gender pay gap and time women take out of the workforce. But there’s another critical issue—women are more likely to invest in less risky, conservative funds. For instance, men allocate 37 percent of their KiwiSaver balances to growth and high-growth funds, while women only invest 32 percent in these categories, favoring moderate or conservative options instead.
Here’s the bold truth: higher-risk funds historically deliver higher returns. Morningstar data shows that aggressive funds have averaged a 9.5 percent annual return over the past decade, compared to just 4.2 percent for conservative funds. By playing it safe early in life, women could be leaving tens of thousands of dollars on the table over time. Westpac estimates that the difference in outcomes between a conservative and growth fund over 30 years could exceed $225,000 for a median earner contributing 6 percent annually.
Hearn encourages women to rethink their approach: “Historically, women have made more conservative fund choices, but if you’re saving for the long term—at least 13 years—and can handle fluctuations in your balance, I’d urge you to reconsider your fund type.” She also highlights a cultural gap: men are generally more comfortable discussing money and investments. “We need to normalize talking about our KiwiSaver balances, returns, and fund choices,” she says. “Let’s start having more open conversations about money.”
But here’s the question that’s bound to spark debate: Is pushing women toward riskier investments the right solution, or does it place an unfair burden on them to compensate for systemic issues like the gender pay gap? While higher-risk funds offer greater potential returns, they also come with volatility. Hearn advises, “Ensure your fund aligns with your risk tolerance and time horizon. Retirement is a long-term goal, often decades away. Taking on a bit more risk now could mean your money works harder for you.”
So, what do you think? Should women be encouraged to take more financial risks, or is this advice overlooking deeper structural problems? Let’s discuss in the comments—your perspective could change the conversation.
