First home buyers Craig and Kylee Knox - download video here:
Mr Mulholland said that as balances increased, KiwiSaver was playing an even more significant role in helping people buy their first home.
Just over 40% of New Zealand first home buyers used their KiwiSaver money to help with their purchase last year.
“We expect withdrawals to increase in size as KiwiSaver balances increase,” said Mr Mulholland.
“A young person who starts contributing regularly to KiwiSaver from the time they start their first job is likely to have built up a tidy sum by the time they reach the typical home buying age of 35.
“They will have had the benefit of a decade of contributions from themselves and their employers, as well as investment returns.”
For example, a 25-year-old earning $50,000 a year and contributing 3% to their KiwiSaver account, matched by have up to $40,000 to put towards their first home at age 35.