KiwiSaver - what happens when you turn 65 years of age?

Here are some key facts about your New Zealand KiwiSaver fund when you turn 65 years of age: 

  1. You can access the balance of your KiwiSaver if you have been in the Scheme for five years. This means if you began your KiwiSaver at 64 years of age, then you will have to wait until you are 69 before you can access your accounts funds balance.
  2. When (and if) you withdraw your funds from your KiwiSaver, you will receive the total balance (that is your contributions, your employer’s contributions and your tax paid investment return).
  3. There is no tax payable on the balance you receive.
  4. You do not have to withdraw you KiwiSaver fund balance when you turn 65 years of age.
  5. If you continue to work after you turn 65, your employer is not required to pay in their KiwiSaver contributions any longer. Some employers do though.
  6. Once you turn 65, you will not receive the Government’s Tax Credit of $521.43 per annum as you did prior to turning 65.
  7. You can now open a KiwiSaver account after you turn 65 years of age. This means you can, if you choose, switch your savings to a KiwiSaver account. This change in the KiwiSaver rules affecting 65 year olds became effective from 1 July 2019.
  8. You have a choice of three types of risk funds (or a mix of them) 
    1. Low risk (conservative) - mostly fixed interest and bonds
    2. Medium risk (balanced - a mix of conservative and growth)
    3. Higher risk (growth) - mostly shares
  9. Conservative, moderate and balanced classes have returned in the range of 7.5 percent and 8.9 percent over the past 2 years. Compare this with fixed interest of between 2.00 and 3.00 percent.
  10. KiwiSaver accounts are simply managed funds of investments, and depending on the risk type you choose this will determine what portion of your fund is invested in fixed term interest deposits and what portion is invested in shares.
  11. You can choose your mix of fund types, depending on your risk profile.
  12. We strongly recommend you use our 65 Not Out Companion Workbook as a tool, and to study the action recommendations we put forward if KiwiSaver is relevant to you around the age of 65.


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