KiwiSaver for Retirees

Read More

Retired CoupleKiwiSaver for Retirees

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.

 

Related Articles

Economy
Liz Koh

Budget Winners and Losers

The latest Government budget had something for everyone but while most households will be a few dollars a week better off, there are some clear winners and losers. In the winners’ corner are businesses, those on high incomes, and savers. The biggest losers are property investors who have built large portfolios financed partly by tax rebates.

Read More »

Top Up or Miss Out

The end of June is an important date for KiwiSaver members. The financial year for KiwiSaver runs from 1 July 2009 to 30 June 2010 and if you have contributed at least $1,040 to KiwiSaver during that time, you will be eligible for the full amount of Government tax credit to be paid into your KiwiSaver account in July.

Read More »

Responsible Investing

There is a worldwide trend for investors to want to make a positive contribution to the world by investing in companies that are socially and environmentally responsible. If you are passionate about the effects of climate change, the scarcity of food and water, and social or environmental policies in general, then you will no doubt wish to ensure that the companies in which you invest are going about their business in a manner that is consistent with your views.

Read More »

Helping You Live your retirement To the Max

Keep in touch

Fill in your details and we’ll get back to you in no time.