What to Know About KiwiSaver in Retirement

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After years of putting money into your KiwiSaver, finally reaching retirement can feel like a well-earned achievement. But understanding what happens next is just as important as the years you spent contributing. KiwiSaver doesn’t just stop at 65, as it becomes a tool you can use to support your lifestyle and make the most of your golden years.

Once you turn 65, you’re eligible to withdraw your KiwiSaver funds. There’s no requirement to take it all out at once. In fact, many retirees choose to leave their money in the account and withdraw smaller amounts regularly, almost like a personal pay cheque. This approach can help you manage your budget more easily and allows any remaining savings to keep earning investment returns.

You can also choose to withdraw lump sums when needed, giving you the flexibility to cover big expenses like travel, home improvements, or unexpected medical costs. It’s all about using the money in a way that works best for your needs and goals.

It’s worth noting that after you reach 65, employer contributions and government contributions (like the annual member tax credit) stop. If you’re still working and contributing, you’ll be funding your KiwiSaver account entirely yourself. While this might change how you manage your savings, your money can still grow depending on how the market performs.

Another thing to consider is the type of fund you’re invested in. If you plan to draw money regularly, a conservative or balanced fund might help protect your savings from sudden market dips. If you don’t need to touch the money for a while, a growth fund could still be a suitable choice. It’s a good idea to check in with your KiwiSaver provider or a financial adviser to make sure your fund aligns with your retirement plans.

In short, your KiwiSaver doesn’t end at retirement—it evolves with you. With some planning and the right information, it can give you more freedom, security, and peace of mind as you enjoy the years ahead.