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KiwiSaver and Retirement

Under current legislation people can access their KiwiSaver at age 65 or once they have been in KiwiSaver for 5 years (whichever is the later).
 
If you’re closing in on being able to access your KiwiSaver, you’re probably starting to think about what you’ll do with this money and how you can make the most of it in retirement along with your other assets.
 

What are your options?

The great thing is that you have options and you can elect the option/s that best suits you. You can:
  1. Keep your money in KiwiSaver
  2. Setup a regular withdrawal from your KiwiSaver to supplement your pension or other retirement income sources
  3. Invest in our non-KiwiSaver managed funds
  4. Withdraw some or all of your funds at any time

Keeping your money in KiwiSaver

There are some good reasons to consider keeping your KiwiSaver account going beyond 65. As you know, KiwiSaver provides an easy, transparent and very cost effective way to continue to invest (compared to other investment vehicles). It will also ensure your retirement assets are diversified rather than simply being in the bank.
 
The Fisher Funds KiwiSaver Scheme provides flexible investment options covering the full risk / return horizon so that your money is invested in a manner consistent with your risk profile and investment goals. Don’t forget you are able to change your investment strategy at any time.
 
KiwiSaver offers a great one stop shop to consolidate other investments at no cost and without hassle including UK pensions, Aussie Super accounts. It can become your pre-eminent retirement savings vehicle.
 
And of course, you will still be able to rely on the friendly and helpful assistance from the Fisher Funds Client Services team so managing your account is seamless and painless. You’ll continue to receive our monthly newsletters keeping you up to date with investment markets and the performance of your funds. This regular flow of information becomes even more important to help make good decisions about your money as you’ll be relying on your capital base for income and not a wage or salary.
 

What is the process?

We will be required to verify your identity prior to making any withdrawals. We’ll make any forms and details about withdrawals available closer to July 2012 when the first KiwiSaver members can access their money.
 

Things you should consider

Chances are you’ll live much longer than 65. The current life expectancy for NZ men is 78 years. NZ women live to 82 on average. That’s at least another 13 to 17 years you need to plan to make your money work for you in retirement.
 
Many people don’t spend adequate time planning for their retirement. It’s important that you take stock of your situation. Will your current capital base provide the income you need to cover your expected cost of living plus the little extras like travel and treating the grandkids? NZ Super payments are only $339.92 in the hand each week for a single person and $522.96 for a couple. I’m sure you’ll agree that’s not a lot to rely on.
 
There are lots of free tools available to help you with some of this basic retirement planning. www.sorted.org.nz has a great range of calculators and guides for everything from budgeting to investing.
 

The fine print

  • Under current legislation, you are able to access your KiwiSaver account at the age of eligibility for NZ Super (currently 65) or once you have been in for 5 years, whichever is the later. Access to funds is unrestricted.
  • Once you reach the age that you can access your KiwiSaver, you are no longer eligible for any employer or government contributions
  • You can make voluntary contributions after you reach 65