A recent survey conducted by the Financial Markets Authority and the Commission for Financial Capability found that about 25 per cent of people are not sure how to manage the money in their KiwiSaver funds after the age of 65.
There are variations between different scheme providers and, once you turn 65, providing you have been in KiwiSaver for five years, you should ensure you understand what your options are.
As well as withdrawing your funds in full or leaving your funds invested, you may be able to set up a regular withdrawal, arrange a partial withdrawal, or add more money. There are a number of considerations when deciding what to do.
If you are still working after the age of 65, you will not receive the annual tax credit and your employer does not have to contribute 3 per cent of your pay. However, many employers offer to keep contributing and you should retain your KiwiSaver fund while contributions continue.
After that point, the decision as to whether to leave your funds in KiwiSaver will partly depend on what other retirement savings you have accumulated. You should plan to still have funds invested at the end of life, and this could be for 30 years.
