Many people are used to eking things out between paydays, but once you reach retirement and you’re not working, this is no longer an option.
Retirement can last for several decades for many, so it’s important to keep your money working even when you’re not.
Fisher Funds’ Wealth Advice Lead, Laura O’Reilly, has some tips for entering this new chapter with confidence and ensuring your nest egg can see you through.
Advisers would generally plan out a client’s retirement to age 90, and there are several options to consider when you reach the big milestone of 65, whether you are retired or continue to work.
Your KiwiSaver options at 65
One of your options is withdrawing the full amount that’s in your KiwiSaver account. If you do this however, you’ll need to think about where you are going to put that money so that it can continue to have the potential to grow and fund your life in retirement.
Another option is to keep all, or some, of your money in your KiwiSaver account and access it just when you need it.
“This means you’ll continue to enjoy the benefits of being invested in a diversified fund,” says O’Reilly.
“That will help stretch out your nest egg a little bit longer and can help protect the purchasing power of your money against inflation throughout retirement.”
You can also set up a regular withdrawal, like paying yourself a regular pay cheque from your KiwiSaver, or you can leave it invested and take out lump sums as and when you need them, for costs like holidays or home renovations.
If you continue to work after 65
“Working after 65 is so common these days and you can absolutely continue to contribute to your KiwiSaver, while you’re still able to save,” says O’Reilly.
“It’s also worth checking with your employer on their policy, as some may continue their employer contributions, provided you are contributing.”
However, you will no longer be eligible for the annual government contribution once you’re receiving NZ Super.
Advice approaching retirement
It can be quite a lot to get your head around so it’s a good idea to do some research and get some advice if you’re planning for or approaching retirement.
“Expert advice can help you figure out what’s possible and help you plan for that,” says O’Reilly.
If you’re approaching retirement, make sure you check in on your KiwiSaver account and understand what you might have by the time you want to retire.
Most KiwiSaver providers have tools that you can use to see if you’re on track and useful information about what to think about when you reach 65. If you want some more specific advice, give your KiwiSaver provider a call and make an appointment to chat to an adviser.
Join over 500,000 ambitious Kiwis with Fisher Funds, New Zealand’s most trusted KiwiSaver provider*. Just visit www.fisherfunds.co.nz/kiwisaver
Fisher Funds Management Limited is the issuer of the Fisher Funds KiwiSaver Scheme and Fisher Funds TWO KiwiSaver Scheme. Fisher Funds Wealth Limited is the issuer and manager of the Fisher Funds KiwiSaver Plan. Product Disclosure Statements for the schemes are available on our website.
*Reader’s Digest Most Trusted Brand for KiwiSaver (as voted by New Zealanders) 2021, 2022, 2023, 2024.
This content was sponsored by Fisher Funds.
