When you turn 65, there are many options around how you use your KiwiSaver fund to support you, but the change can be daunting. What are the rules for contributing? How can I use that money? Do I need to take out all my funds from my KiwiSaver fund in one go? Contrary to popular belief, there’s no need to withdraw all the money from your KiwiSaver account immediately; in fact, you can even continue to keep on contributing. Leaving funds in your account allows it to continue to be managed by your provider, so your money keeps working for you, and you can manage your savings instead of letting them sit idle. KiwiSaver funds will continue to earn interest for the remainder of your life, retired or not.

You can keep contributing part of your wages—if you’re still working—and make lump-sum payments to the fund when you’re able to do so, all without any of the penalties that may be associated with savings accounts. If you require partial withdrawals from your fund, you can do this, and certain fund providers will also let you set up direct payments from your KiwiSaver so you can pay yourself a regular income.

It’s worth keeping in mind that employers aren’t legally obligated to contribute to your KiwiSaver if you are still working and no longer have access to government member tax credits. This means the ball is in your court when it comes to the growth and stability of your investment, and it’s more important than ever to make sure you do the research and choose the right fund for this exciting new phase of your life. For example, you may want a fund with high proportions of cash and fixed investment, which is less risky than something with bigger highs and lows over time; or you could be interested in making high returns to top up your savings while you supplement your income elsewhere. Whatever your plan, picking the right fund for you is the vital first step.

Turning 65 isn’t necessarily the end of your relationship with KiwiSaver. It can be a very lucrative ongoing partnership. But everyone has different retirement and savings goals and different attitudes to risk; it all depends on how you want to spend your retirement. If you need help navigating the changes, IKONIK, the KiwiSaver and Insurance Specialists are here to help.

As an n3 Member, you can help your team live their best lives by extending your health and wellness strategy to include IKONIK’s FREE Ignite Partnership Programme - a simple but effective toolbox of financial wellness and education resources. Click here to find out about IKONIK for your business.