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What can you do with your KiwiSaver when you turn 65?

 

If you’re getting close to turning 65, or you have now turned 65, you might be wondering what you can do with your hard-earned KiwiSaver balance. We’ve put together some answers to your burning questions.

How much can you withdraw?

At 65, you’re able to withdraw all of the money in your KiwiSaver at any time. However, if you choose to withdraw all of your money, you will have to close your account and you’re unable to open another. Some providers can offer you regular automatic withdrawal amounts which might be helpful if you’d like to have a bit of extra cash every week without draining your account. Alternatively, you can withdraw for one-off expenses, like a new car, a holiday or renovations.

Can you still grow your fund?

Choosing to leave all or some of your money in your KiwiSaver account means your fund has the potential to keep growing. If you’re still working, even part-time, you can choose to continue contributing part of your paycheck. If you are planning on leaving your savings in your KiwiSaver account, it’s a good idea to have a chat with a financial adviser to discuss what fund type options are available for you.

Will you still get employer or government contributions?

If you decide to keep working and continue contributing to your KiwiSaver, it’s important to know that your employer is no longer required to match your contributions, however some do choose to continue. You also won’t receive the annual government contribution anymore.

What happens if you die before you turn 65?

If you pass away while your KiwiSaver account is active, the funds will be transferred to your estate. KiwiSaver is considered relationship property so it will be shared with your partner or according to your will. That’s why it’s so important to have a will in place so your money goes where you’d like it to. If you need help, talk to us about getting a will sorted.

If you’re not sure about how to manage your KiwiSaver funds once you’ve turned 65, chat to one of our advisers today.

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