Should the retired join Kiwisaver?
Written by R. A. Stewart
Kiwisaver is New Zealand’s retirement scheme. It is a scheme which locks money in until the retiring age of 65. A change of rules to Kiwisaver in recent years has enabled those who have reached the retirement age of 65 and who are not already a member of Kiwisaver to join.
This leaves the question “Are there any advantages for anyone aged 65+ to join Kiwisaver?”
My answer to this question is “Yes”.
In fact there are several benefits of joining Kiwisaver after 65.
If someone is in such a financial position to be able to contribute to Kiwisaver at a later stage in life then why not? Any spare money which you have available for emergencies will help make your retirement easier as far as having an emergency fund.
If you access your bank account via the internet (Who doesn’t?) and use your phone to do your banking then having your savings in Kiwisaver will make it virtually impossible for scammers to get access to it. Kiwisaver members who have tried to access their funds which are in Kiwisaver have to jump through a few hoops to get it, including the over 65s.
At least it makes you a lot safer as the over 65s are prime targets for scammers and gold diggers.
There may not be any of the incentives such as the annual $520 government money available for the over 65s but it is still a good idea for retirees to hold on to their kiwisaver account and even contribute to it because any money which you have available acts as a financial shock and one of these is ill health which are more likely to happen to older people. Unexpected medical bills can be financially draining, therefore, having the funds can be less worrisome for the over 65s.
As a retiree you are given several options as to how you manage your kiwisaver which makes it very flexible.
You can withdraw all or some of your funds in kiwisaver.
You can opt out or opt in.
As you get older, medical bills can become a problem, therefore, any money you have behind you can make life less challenging for you.
What happens to your kiwisaver account when you pass on?
You can name any family member as beneficiaries of any money you have in kiwisaver. It will be treated just like any other asset you own as far as your estate goes and if you do not have a will then it is likely that legal fees wil;l take up a portion of your assets as the legal process will decide who gets what.
Having a will will make this part of your family’s life easier toi deal with.
About this article
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