More than 370 people aged under 25 have a KiwiSaver balance of $80,000 or more. File photo. Photo: 123rf
While New Zealanders as a whole might only have about $30,000 on average in their KiwiSaver accounts, some of the youngest members of the population already have significantly more.
Data from actuarial firm MJW shows that there are slightly more than 370 people aged under 25 with a KiwiSaver balance of $80,000 or more.
That number increases to 1155 for people aged 26 to 30.
People can contribute to KiwiSaver from any age but usually only start to receive matching contributions from employers and the government once they are 18.
Kernel Wealth founder Dean Anderson said while substantial balances among young KiwiSaver members were relatively rare, there were "inspiring" stories of early financial success.
"Some have benefited from forward-thinking parents who started contributions early, while others, say those who have chosen to enter a trade early, have been consistently investing for nearly a decade.
"These young savers show that whether through family foresight or early career choices, getting an early start on KiwiSaver can lead to impressive results by your mid-20s."
Sorted's retirement savings calculator suggests that even if someone was not contributing anything further to their KiwiSaver, if they had $80,000 at 25 and left it to grow over 40 years in a balanced fund, they could end up with just under $161,762 at 65.
Returns compounding over time mean contributions made at the start of someone's investing life are particularly powerful.
Pie Funds chief executive Ana-Marie Lockyer said she had seen people under 25 with balances near $200,000.
"Generally, these higher balances have had significant lump sum deposits into their KiwiSaver accounts - this may be windfalls or inheritances maybe, cant be sure - but I imagine they will be investing with the view of using it for first home, noting its accessibility."
She said someone who started with $80,000 at 25, earning $60,000 a year and contributing 3 percent, they could grow their balance to $1.7 million at retirement.
She said she knew of many younger people still living with their parents and contributing 10 percent of their income to build their KiwiSaver balances more quickly.
Booster chief customer officer Diana Papadopoulos said $80,000 would be a healthy home deposit or a platform for young people to build on for retirement.
"Having that at age 25 is a fantastic position to be in - and quite unusual. There may be a number who have been chipping into their KiwiSaver account through their jobs and making more than the minimum 3 percent contribution. Add employer and government contributions and committed savers can build up their balance quite quickly. But the majority would likely have had some help along the way which just shows what a powerful gift a contribution a young person's KiwiSaver account can be."
Consilium managing director Scott Alman said some young people might have returned from a stint in Australia or the UK and brought savings with them.
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