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Feijoa says its users are on track to contribute NZD $2.5 million to KiwiSaver this year through purchase round-ups, a level that could help more members qualify for the full annual Government KiwiSaver payment.
Data from the New Zealand savings app shows users are averaging a daily round-up of NZD $2.60 on everyday spending. Over a year, that amounts to about NZD $950 flowing into KiwiSaver accounts without a separate manual transfer.
Feijoa estimates the total directed into KiwiSaver by its users this year could reach NZD $2.5 million. If invested in a growth fund over a working lifetime, that sum could grow to more than NZD $90 million by retirement.
The figures come as attention turns to the annual KiwiSaver threshold needed to receive the full state contribution. Eligible members can receive up to NZD $260.72 from the Government each year on the first NZD $1,042.86 of their own contributions.
Many savers do not reach that mark. Only around half of KiwiSaver members received the full amount last year, according to Feijoa.
Contribution gap
The shortfall is more pronounced among people outside the PAYE system. Research from the Retirement Commission found that 44% of self-employed New Zealanders actively contribute to KiwiSaver, compared with 78% of employees.
According to Feijoa, that gap reflects how KiwiSaver fits unevenly with changing patterns of work. The app links contributions to card spending rather than payroll deductions, which helps users save regardless of how often they are paid.
"These numbers show what's possible when saving becomes part of the everyday rather than something you have to think about," said Mark White-Robinson, co-founder of Feijoa.
"This isn't the result of windfalls, lifestyle changes or frugality, just spare change compounding quietly every day, over time," White-Robinson said.
Feijoa's model rounds purchases up to the nearest dollar and sends the difference to a nominated KiwiSaver account. That removes the need for members to remember separate contributions during the year.
It also says linking investing to regular spending changes the timing of contributions. Because users buy into their funds in small amounts across different market conditions, they continue investing whether prices rise or fall.
White-Robinson said the issue was linked to how the retirement savings framework was originally designed. "KiwiSaver was built around the assumption that most people were in stable employment with regular wages," he said.
"That's not how working life looks for a growing number of New Zealanders. Feijoa's round-up model means contributions happen automatically with every card purchase, regardless of how or when someone earns their income," White-Robinson said.
Feijoa operates across KiwiSaver schemes in New Zealand and connects to users' banks through open finance partner Akahu. It does not access KiwiSaver accounts directly and does not hold or manage KiwiSaver funds.
The data points to a wider question for providers and policymakers over how retirement products serve workers with irregular income. For those members, small automated contributions tied to everyday transactions may be one of the few ways to build consistent savings and reach the threshold for the full NZD $260.72 Government payment.