Q I am 68 and still working as a teacher. I have over $250,000 in my balanced KiwiSaver fund — I topped it up with a small inheritance from my father and I contribute 10 per cent of my salary plus my NZ Super of $679 per fortnight (I'm taxed at ST). What should I do when I retire at the end of the year? Will I need to close my KiwiSaver or can I keep it going? My husband passed away last year. I used his savings to pay off our mortgage.
A You have done well to build up your KiwiSaver over the years and pay off your mortgage.
You do not have to do anything with your KiwiSaver when you stop working. Your contributions will stop, but your money will still be invested in the fund of your choice. It may be a good idea to review where your money is invested. If you are in good health at the age of 68 you should plan for a 27-year retirement — to age 95. This means that some funds can be invested for the long term.
The drop in income when you stop working can be difficult to adjust to. You can access your KiwiSaver to top up your income from NZ Super.
How much you will need depends on your lifestyle and budgeting skills. The Retirement Calculator on the Sorted retirement savingswebsite will help you work out how long your savings will last.