Kiwisaver for retirees (New Zealand only)
65 is the age of eligibility for New Zealand Super, the name given to the pension paid to New Zealanders. You also are able to access funds in your kiwisaver account at this age provided that you have been in kiwisaver for at least 5 years. For example, if you joined kiwisaver at 61, you will not be able to withdraw money from your kiwisaver account until you are 66. However if you became a member of kiwisaver say two years prior to reaching 65 and during that 2 years transferred money from another retirement fund into your kiwisaver account then the 5 year rule applies from the time you joined the other superannuation scheme. It is unclear whether this applies when you transfer money from an overseas retirement fund into your kiwisaver account.You are able to withdraw the whole lot from your kiwisaver account or just as you need it. If you withdraw the lot then your kiwisaver account will be closed and you will not be able to rejoin. Kiwisaver is such a great savings tool that it is worth keeping it open after your retirement.
If you continue working past 65 and remain in kiwisaver, you will not be eligible for the government tax credits ($520 max per annum) and your employer is not obliged to contribute to your kiwisaver account. You need to talk with your employer about making the employee deductions into your kiwisaver account though. There are three options, 2%, 4%, or 8% of your gross income.
there is a large number of retirees in New Zealand who were not born in New Zealand. many will be eligible for New Zealand Super. It will pay to check the eligibility criteria. there will be a number of retirees who were born in New Zealand but worked overseas for a time and have money in some kind iof superannuation scheme which that country has. It may well pay to have that money transferred to your kiwisaver account prior to retiring because if you receive money weekly from that superannuation fund then WINZ will deduct that amount from the amount you receive as your NZ Super.
This post is not intended as financial advice. It is advisable to contact your financial advisor if you have any questions regarding kiwisaver.