Getting Your KiwiSaver When You Hit 65
Reaching 65 is an important milestone in New Zealand, particularly when it comes to the savings you’ve built up in your KiwiSaver account. At 65 the restrictions on accessing your funds are lifted. This allows you to decide how and when you use your money. Understanding your options and the process can help you make the most of your retirement savings.
What Changes at Age 65?
When you turn 65 your KiwiSaver account becomes “unlocked.” This means you can access your money at any time, for any reason. Unlike before, where withdrawals were only permitted under specific situations like significant financial hardship or to buy your first home, all funds in your KiwiSaver account are now available to you.
Taking Out Your Savings: Your Options
Once you are eligible, you have several choices for withdrawing your money. Some people choose to withdraw the entire balance in a single lump sum. This can be helpful if you plan to pay off debts, make a large purchase or want to move your savings to another investment or bank account.
Others prefer to set up regular withdrawals which means you can receive a set amount each month, quarter or on another schedule that suits you. This option can be useful for turning your savings into a manageable “income” to help support your living expenses during retirement. There’s also the option to leave your money invested in KiwiSaver after 65, continuing to benefit from any market growth your investment may earn. You can combine these approaches; take a partial lump sum, schedule regular withdrawals or simply leave the money where it is and draw from it as needed.
How the Withdrawal Process Works
Withdrawing your KiwiSaver savings is a straightforward process. You will need to contact your KiwiSaver provider or visit their website for their specific withdrawal form. You’ll usually be asked for proof of identity (such as a passport or driver's licence), your bank account details and your preferred withdrawal method (lump sum, regular payments or both).
Once you submit your request and supporting documentation your provider will process your withdrawal. This typically takes five to ten working days, though it can take a little longer during busy periods or if extra information is needed. Some providers allow for online applications while others might need physical forms. Always check with your provider for their specific process.
What Happens If You Keep Your KiwiSaver Open After 65?
You are not required to withdraw your KiwiSaver money as soon as you turn 65. Your account can remain open for as long as you like, and your savings will stay invested according to the fund or investment options you’ve chosen. This can be a practical way to continue growing your retirement nest egg. You must remember that market conditions can mean your investment value goes down as well as up. It’s important to consider your risk comfort.
It’s worth noting that after you turn 65 you stop receiving contributions from the government (known as the annual member tax credit) and, unless you are still working and your employer agrees, you also stop receiving compulsory employer contributions. However, you are still able to make voluntary contributions to your account should you choose.
Things to Think About Before Withdrawing
Deciding how and when to access your KiwiSaver money is a big decision. Taking out a lump sum can be tempting but it’s vital to think about your long-term financial needs. Many people find it’s easier to manage living costs in retirement if they set up a regular withdrawal, much like a pay cheque. Reviewing your spending plans, debts and potential health or aged care needs is a good idea.
Before making a withdrawal you may want to talk with a financial adviser or with a free local support service such as the Retirement Commission’s Sorted service or the Citizens Advice Bureau. They can help you weigh up your options based on your circumstances and goals, ensuring your savings go further in retirement.
The Freedom to Choose
Turning 65 brings with it more flexibility and control over your savings. KiwiSaver withdrawals at 65 are designed to be simple and suit a variety of retirement plans. Whether that’s taking all your savings now, drawing down gradually or continuing to invest the choice is now yours. Taking a thoughtful approach allows you to tailor your choices for the retirement you want, using the hard-earned savings you’ve built over your working life.