Getting the most out of KiwiSaver after 65

Kiwis are working and living longer – which means retirement at 65 is no longer a given. If you’ve hit gold card age and now have access to your KiwiSaver account, but you’re not sure what to do, it’s important to consider how you want to use your KiwiSaver savings in retirement given NZ Super may not cover all your needs.

Your savings have to last you throughout your retirement – taking into account your day-to-day financial needs and any big goals you have, such as planning an overseas holiday or home improvements.

The beauty of KiwiSaver is it gives you flexible options for how to manage your money. 

Whether you’re still working or have hung up your hat, KiwiSaver can be a helpful way to manage your savings. Here are some options you could consider.

There’s a misconception you need to withdraw your savings as soon as you turn 65 – but that’s not the case. You can leave your money in your KiwiSaver account until you decide to withdraw some or all of it. You can even keep contributing – either through your salary or wages, if you’re still working, or by making lump sum contributions.    

This can be a good option if you don’t need your money right away. It also means you’ll continue to earn returns on your KiwiSaver balance, which is one way to help your savings last throughout your retirement. 

You can set up a regular withdrawal to give you a steady stream of income, while keeping the rest of your savings invested. This can be a good way to supplement your NZ Super, while also keeping your savings working harder for you than a standard bank account.

You can make lump sum withdrawals at any time, which can be helpful for one-off expenses like an overseas holiday. This means you can keep the rest of your money (that you don’t currently need) working hard for you in your KiwiSaver account. Or, if you’ve got a plan in mind for your KiwiSaver savings, you can choose to withdraw all your money in one go.

By considering your options, you can feel confident about your retirement plans. How you use your KiwiSaver savings should match your goals, so it’s important to get advice about which option (or perhaps several options) could be right for you, and what fund might be best for your retirement. For more information on choosing the right fund in retirement, see What happens when you turn 65.