Turning 65 is a milestone worth celebrating. It’s also the age when you gain full access to your KiwiSaver savings and become eligible for NZ Super. For many people, though, the excitement is quickly followed by a practical question: What should I actually do with my KiwiSaver now?

The first thing to know is that nothing happens automatically. Your money doesn’t get paid out unless you ask for it. Instead, turning 65 gives you options and flexibility.

First things first: what are my options?

Once you turn 65, you can:

• Withdraw all of your savings as a lump sum

• Take out part of your balance

• Set up regular withdrawals (weekly, fortnightly or monthly)

• Leave your money fully invested

• Stay invested and split your savings across two or more KiwiSaver or Investment funds 

• Continue contributing if you’re still working
  
  

That last point often surprises people. KiwiSaver doesn’t suddenly stop at 65. You can keep contributing, and some employers may continue contributing too (it’s worth checking). Because you can both withdraw and contribute after 65, KiwiSaver can become an ongoing investment account and a flexible source of retirement income.

Should I take all my money out at 65?

Just because you can withdraw everything doesn’t mean you should. Many New Zealanders now spend 20 to 30 years in retirement. According to Stats NZ life expectancy data (2023), a 65-year-old can expect to live into their mid-to-late 80s on average, and many live longer. That means your KiwiSaver may need to support you for decades.

Some people choose to withdraw a lump sum at 65 to fund something meaningful - a trip, home improvements, paying off debt or helping family. While some retirees draw down their savings gradually to supplement NZ Super and cover day-to-day living costs. For many, a blended approach works well. Take a portion out if needed, and leave the rest invested to continue working for you and draw that down slowly over time.

What happens if I leave my KiwiSaver invested?

If you leave your balance in KiwiSaver after 65, it stays invested in your chosen fund or funds. That means it can still grow, but it can also fluctuate with markets.

Retirement today is longer than it used to be. It doesn’t necessarily make sense to move everything into conservative investments the moment you turn 65. What matters more is how long you expect to keep your money invested and how comfortable you are with ups and downs.

If you’re planning to withdraw gradually over 20 years, part of your savings may still have a long time horizon. That’s why it’s important to review your fund choice around retirement, rather than automatically switching.

So what should I check before making changes?

As you approach retirement, it’s worth taking a step back and asking:

• Does my current fund still suit my goals, time horizon and risk tolerance?

• How much income will I need on top of NZ Super?

• How long might my savings need to last?

• Do I want advice before making big decisions?

Our Fund Selector and Future Projection tools in the member app and the  retirement checklist can help you explore these questions. Sorted also has a range of helpful Retirement Guides.  And if you’re still unsure, it may be worth speaking with a financial adviser to get personalised advice.

How do people usually structure withdrawals?

For most of our lives retirement it’s about saving, but once you turn 65 it is about spending - wisely! The New Zealand Society of Actuaries outlines several common Rules of Thumb (pdf) retirees can use to manage withdrawals. For example, some divide their savings by their remaining life expectancy to estimate an annual amount. Others withdraw a fixed percentage each year, or adjust for inflation over time.

There’s no one-size-fits-all answer. The right approach depends on your goals:

• Do you want to maximise income early in retirement?

• Do you want to preserve capital for later years?

• Are you hoping to leave something behind?
  
  

One practical way to think about retirement is the “three bucket” strategy recommended by Sorted. This involves keeping short-term cash for immediate needs, medium-term investments for stability, and long-term growth assets to help offset inflation. It’s a way to balance flexibility with long-term sustainability. This blog - Scrimp, save, splurge? Long-term spending strategies for retirement goes into more detail.

Our Future Projection tool, available  in the member app, can help you explore how different strategies can help your savings go further. Just click on the Retirement spending tab and move between the “Rules of Thumb” to see what the strategies mean for you in real dollar terms.

Whatever strategy you choose, retirement planning isn’t “set and forget.” It’s something you revisit and adjust as life evolves.

How do I make my first withdrawal?

If you decide to withdraw funds after turning 65, the process is straightforward and takes about ten days once all the documents have been submitted.

1. Log in to the member app
   Go to Documents > First Retirement Withdrawal form.
   
   

2. Complete the Retirement Withdrawal form
   Fill in your details and confirm how much you’d like to withdraw (full balance, partial lump sum, or set up regular withdrawals).
   
   

3. Complete a signed statutory declaration
   Your first retirement withdrawal requires a signed statutory declaration confirming your identity and eligibility. This must be witnessed by an authorised person (e.g. Justice of the Peace, lawyer, notary public).
   
   

4. Provide supporting documents, including

   • Certified proof of identity

   • Proof of bank account (if not already verified)
     

5. Email your completed documents
   Send everything to info@simplicity.kiwi.

Once you have made this initial withdrawal you can request additional lump sums, or set up a regular withdrawal, as needed, without providing all this documentation again.

The bottom line

Turning 65 doesn’t mean your KiwiSaver journey ends, it simply becomes more flexible. You can withdraw some, all or none of your savings. You can keep investing. You can continue contributing. The right decision depends on your lifestyle, your goals and how you want your retirement to unfold.

For many people, the best approach is thoughtful and gradual - review your fund, plan your withdrawals, and adjust over time. Your retirement is not based on a single decision. It’s a phase of life and your KiwiSaver can continue to support you through it.