QUESTION:
My husband and I both retired recently at the age of 65. We transferred our bank savings into our KiwiSaver accounts, as interest rates are so low. We now have just over $200,000 between us. We are planning to withdraw a regular amount to help with our weekly living expenses. This would be easier if we could combine our two KiwiSaver accounts into one joint account. Is this possible?
ANSWER:
KiwiSaver account can only be owned by one person, it cannot be owned jointly with someone else. Nor can it be owned by a family trust.
While it may seem cumbersome to manage two KiwiSaver accounts, there are advantages. If you are with two different providers, you will get different investment styles — active vs passive for example. While one manager may underperform at certain times, the other may excel. You could use one KiwiSaver account for withdrawals — selecting a lower risk fund with less chance of a sharp drop in value — leaving the other KiwiSaver fund in a higher risk strategy to grow over the next 10 to 20 years.