John Body, managing director of retail, business banking and wealth for the ANZ, said the current low interest rate environment was making it more attractive for people to leave their money in KiwiSaver.
"While the current low interest rate environment is great for borrowers, it's a tough situation for savers.
It's becoming more attractive for over-65s to leave their money in KiwiSaver, continue to earn investment returns and still be able to access their money at any time.
Rates on on-call savings accounts and short term deposits fell in recent months after the Reserve Bank unexpectedly cut the official cash rate to a record low of 2.25 per cent.
According to interest.co.nz on call savings accounts are paying just 0.75 per cent on savings under $10,000 while a six month term deposit can pay interest over 3 per cent if you have more than $10,000 saved.
Meanwhile the average return for conservative KiwiSaver fund was 4.1 per cent in the year to March 31, Morningstar figures show.
The research also found that of those who would take their money out of KiwiSaver at 65 fewer people planned to put it into a term deposit.
The percentage of those who would invest it in a term deposit fell from 53 per cent in November's survey to 48 per cent.
But a large number of people still don't know what they will do with their KiwiSaver once they can get their hands on it.
Body said 52 per cent had no idea what they'd do with their KiwiSaver money.
Britain recently announced it would allow people who withdraw their retirement savings to use £500 of it to pay for advice.
ANZ's research found 36 per cent of people it surveyed would be keen to take up to $1000 out of their KiwiSaver to pay for advice.
The older people were, the more happy they were to pay for advice, Body said.
KiwiSaver currently does not allow people to withdraw money from it to pay for advice.
The research surveyed 700 people.
