More than 100,000 KiwiSaver members facilitated in first-home purchases
ANZ Investments has announced a significant achievement, with more than 100,000 KiwiSaver members successfully using their schemes to make withdrawals for purchasing their first homes.
Fiona Mackenzie, managing director of ANZ Investments, said the development was a “huge milestone,” with the bank’s KiwiSaver members collectively withdrawing $2.45 billion over the past 13 years to buy their first home.
As KiwiSaver continues to mature, it plays an increasingly vital role in the financial well-being of New Zealanders, aiding in home purchases and savings for post-retirement lifestyles, Mackenzie said, adding that regular contributions to KiwiSaver, initiated early in one’s career, can lead to a substantial deposit by the typical first home-buying age.
The average age of ANZ Investments’ KiwiSaver members making first-home withdrawals is 34. For instance, a 21-year-old investing in a high-growth fund, contributing 3% (matched by their employer) and earning the living wage, could accumulate around $75,000 by age 34.
First-home buyers Emma Riley and Hayden Johnson, aged 29, shared their success story, having recently purchased a house in Hamilton with the assistance of KiwiSaver withdrawals.
“It’s such a great feeling to finally have our own space. Before this we had moved in with my parents to help us save,” Riley said.
“Because I am a tradesman, I’m working on other people’s houses,” said Johnson. an electrician. “I always wanted my own home so I could do those kinds of renovations to our own place. The main reason we have been putting money into KiwiSaver is that we knew we could use it to buy a first home. We were banking on that.”
ANZ Bank New Zealand’s figures indicated an increase in first-home buyers last year, with 9,400 taking home loans compared to 7,500 the previous year.
“Our research shows us there is a direct link between home ownership and higher levels of financial wellbeing,” said Ben Kelleher (pictured above), ANZ’s managing director for personal banking.
“It’s really great to see an increase in the number of young New Zealanders buying their first home.”
The average age of first-home buyers taking a home loan with ANZ Bank was 35, with about three-quarters opting for fixed home loans. The majority purchased existing houses, with 38% in Auckland, nearly 5% in Wellington, just over 10% in Christchurch, and the remainder across the country.
Mackenzie encouraged KiwiSaver members to resume contributions post-first home purchase, emphasising the importance of long-term financial planning in a changing landscape where retiring at 65 is no longer guaranteed.
“The more you can save now the greater the choices you will be able to make in later life,” she said. “This will ensure that saving for a comfortable retirement and owning your own home work hand in hand.”
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