A recent survey conducted by the Financial Markets Authority and the Commission for Financial Capability found that around a quarter 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% 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 a period of thirty years. Your KiwiSaver fund can be a convenient way to invest part of your savings for the longer term. You might even want to consider adding some of your other funds into KiwiSaver to take advantage of the low fee structure. It is important to check the investment profile of your fund to ensure it is appropriate for the investment term and your risk profile. Investing in a fund that has exposure to growth assets (property and shares) will help keep you ahead of the effects of inflation and tax over the long term.