The KiwiSaver Decision to Make Before Your Next Job
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Changing jobs can mean negotiating a salary, sorting out paperwork, and getting used to a new routine. If you are returning to work after retirement or taking on part-time employment, there is another detail worth considering: what happens to your KiwiSaver.
Turning 65 does not automatically close your KiwiSaver account, and eligible people can continue contributing after that age. However, the rules differ depending on when you joined the scheme and whether you have reached the age of eligibility for retirement withdrawals. Your circumstances can affect whether employer contributions are required and what options are available to you.
For people starting a new job, it is worth asking how KiwiSaver will be handled through payroll. If you are eligible to contribute, your employee contributions will generally be deducted from your pay unless you qualify for an exemption or have arranged a contribution holiday where applicable. Your employer’s contribution obligations may also depend on your age, scheme membership, and employment circumstances.
If you are already receiving KiwiSaver withdrawals, do not assume that taking a job means you must stop them. Equally, do not assume that every new contribution will be treated in the same way as before. The rules around contributions, employer payments, and withdrawals can differ, so your provider or Inland Revenue can clarify how they apply to you.
Your fund choice deserves attention, too. Someone who expects to withdraw a substantial amount soon may have different priorities from someone planning to leave their savings invested for another decade. That does not mean you should automatically move to a conservative fund. Consider your investment timeframe, tolerance for market fluctuations, and likely withdrawals before making a change.
Before your first payday, confirm your KiwiSaver status, contribution rate, and any employer contributions with your new employer. If you are unsure about the effect of working after 65, consult Inland Revenue or your KiwiSaver provider rather than relying on workplace hearsay.
A new job can bring useful income, structure, and social connection at any stage of life. Taking a few minutes to understand how it affects your retirement savings can help you make the most of that opportunity without overlooking an important financial detail.
