Managing your money when you retire

If you’re close to retiring or have already retired, then make sure you have a plan in place to stay on top of your finances.

3 minute read

Saving for retirement and hitting the 65-year milestone is a big focus, but when you do get to that stage of life, you might find yourself with a few questions about how to manage your finances. Taking some time to sit down and look at all your options will help you to feel more relaxed and informed, so you can enjoy your golden years.

Working past 65 years

It’s becoming more common for people to keep working past the age of 65, as we continue to live longer and healthier lives, giving many the option to keep earning if they choose to.  Whether you choose to continue working or not, New Zealand citizens and residents may be able to receive NZ Superannuation from age 65, which you can apply for up to 12 weeks before you reach this milestone.  If you do keep working, NZ Superannuation may help supplement income if you want to reduce your hours and slow down a bit. How much you receive depends on your eligibility, living situation and your tax rate – see Work and Income for the breakdown.

Contributions to your KiwiSaver if you keep working past 65

Even if you’re eligible to withdraw from your KiwiSaver account for retirement, if you’re still working you’ll continue to make employee contributions from your pay unless you choose not to. If you're eligible to access your KiwiSaver account and want to stop making contributions, you’ll need to let your employer know by completing a non-deduction notice and giving it to them. If you’re continuing to make employee contributions, it’s a good time to assess your contribution rate – either 3.5%, 4%, 6%, 8% or 10% – and decide what's right for you. You can make voluntary contributions to top up your KiwiSaver account at any time too. Your employer can also continue to make contributions to your account, but once you're eligible to withdraw from your KiwiSaver account for retirement, it’s no longer compulsory for them to do so.

Accessing your KiwiSaver savings

You can access you KiwiSaver account from age 65. Here are your options if you choose to take out your KiwiSaver savings:

• Set up a regular withdrawal
• Take lump-sum withdrawals whenever you want
• Withdraw all your savings

You can read more about accessing funds at retirement on our website.

Planning your retirement spending

There are a lot of things to consider when thinking about your retirement spending, such as: 

• when you’ll stop working altogether
• downsizing or selling assets, like investment properties 
• whether you have retirement savings outside of your KiwiSaver account
• and what type of retirement lifestyle you intend to live

If you’re close to retirement or already retired, it’s also a good idea to calculate how your retirement savings might be spread across your entire retirement timeframe, and what kind of retirement lifestyle you might have.

Check you’re in the right fund for retirement

Being in the right KiwiSaver fund is more important than ever when you’re close to retirement or already retired. If you’re too exposed to market risk, such as being in a fund with a higher proportion of growth assets, you could see your balance drop and not have enough time to wait for a market upturn before you need your money. If you’re looking to access some or all your savings when you turn 65, you might want to consider a fund which has more income assets, so it's less exposed to market ups and down. But if you don’t plan to access your savings for a while, say seven years or more, then you might want to consider a fund with more growth assets to help grow your savings before you need them. You can compare our BNZ KiwiSaver Scheme funds on our website.

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This article is solely for information purposes and is not intended to be financial advice. If you need help, please contact BNZ or your financial adviser. Neither BNZ nor any person involved in this article accepts any liability for any loss or damage whatsoever which may directly or indirectly result from any information, representation, or omission, whether negligent or otherwise, contained in this publication.

BNZ Investment Services Limited, a wholly owned subsidiary of Harbour Asset Management Limited, is the Issuer and Manager of the BNZ KiwiSaver Scheme. Download a copy of the BNZ KiwiSaver Scheme Product Disclosure Statement PDF 1.1MB, or pick up a copy from a BNZ branch.

Investments in the BNZ KiwiSaver Scheme are not bank deposits or other liabilities of Bank of New Zealand (BNZ) or any other member of the National Australia Bank Limited group. They are subject to investment risk, including possible delays in repayment. You could get back less than the total contributed. No person (including the New Zealand Government) guarantees (either fully or in part) the performance or returns of the BNZ KiwiSaver Scheme or the repayment of amounts contributed. National Australia Bank Limited, the ultimate owner of BNZ, is not a registered bank in New Zealand but a licensed bank in Australia and is not authorised to offer the products and services mentioned on this webpage to customers in New Zealand.

BNZ Investment Services Limited (BNZISL) uses the BNZ brand under licence from Bank of New Zealand, whose ultimate parent company is National Australia Bank Limited. No member of the FirstCape group (including BNZISL) is a member of the NAB group of companies (NAB Group). No member of the NAB Group (including Bank of New Zealand) guarantees, or supports, the performance of any member of FirstCape group’s obligations to any party.