KiwiSaver provider AMP has come up with a way of fighting the retirement savings gap between men and women.

As it stands, women are more likely to be enrolled in KiwiSaver, yet are 18 per cent worse off financially in retirement than men.

Part of the problem is they don't contribute while taking maternity leave.

AMP has decided to continue paying KiwiSaver employer contribution to employees on parental leave.

AMP chief executive Blair Vernon told Heather du Plessis-Allan that it is part of their ongoing work to target inequalities and make sure that women are better set up for retirement. 

He says that this solves a "tangible issue" for female staff.

"It also gives us a better chance of encouraging them to come back to us and continue with our organisation."