KiwiSaver members still have some worrying misconceptions about what might happen to their money if they died, divorced or suffered a financial disaster.

Westpac surveyed 1000 members and found just 25 per cent knew that funds in KiwiSaver could be split between a divorcing couple.

Thirty-five per cent of people believed KiwiSaver investments accrued by an individual stayed with that person in the event of a relationship split, while 40 per cent said they did not know.

The survey also drew mixed responses when people were asked about what happened to a person's KiwiSaver balance when they died.

READ MORE: Ask Susan: What happens to KiwiSaver in a break-up?

Six per cent thought the money went to the government and 35 per cent did not know. In fact, all money in a KiwiSaver account goes to the member's estate.

Westpac NZ general manager of consumer banking and wealth Simon Power said the survey showed New Zealanders' level of understanding about the scheme "still needs quite a bit of attention".

KiwiSaver was a significant financial asset for many people, he said, but there was a surprising lack of knowledge in some cases.

"Perhaps because KiwiSaver is held by a single member, away from a couple's joint bank accounts, and in most circumstances those funds can't be accessed until retirement age, people don't tend to think of it as relationship property. Actually, in the event of divorce or a de facto separation, the savings can get split up like other assets."

The research showed KiwiSaver members had better knowledge of what could happen if they struck financial hardship.

Sixty-six per cent of survey respondents knew it was possible to withdraw their money, compared to 10 per cent who said it was not and 24 per cent who did not know.

In the year to October 2017, 17,000 people withdrew $91 million from KiwiSaver schemes for reasons of significant financial hardship. Power said the ability to withdraw money in such circumstances was an "admirable attribute" of the scheme.

The whole KiwiSaver sector needed to do more to boost members' knowledge and build their trust in the scheme, he said.

Those aged over 55 were the most knowledgeable of how KiwiSaver worked, while people between 18 and 34 had the most knowledge gaps. Power said that could be because younger people were more focused on using the scheme to buy a house.

"Our survey showed 12 per cent of people don't know who their KiwiSaver provider is, while 21 per cent don't know what type of fund they are in. Being engaged with your savings and choosing the right fund are vital to getting the best return on your money."