KiwiSaver and Retirement

You can access your KiwiSaver savings when you reach age 65 (the NZ Super age). At that point you have several options for what to do with your money — and the choice you make can significantly affect how comfortable your retirement is.

New Zealand Superannuation (NZ Super) in 2026

NZ Super is a universal government pension paid to all eligible New Zealanders aged 65 and over, regardless of KiwiSaver savings. From 1 April 2026 the after-tax rates (tax code M) are:

$555.15 per week — single, living alone
$512.45 per week — single, sharing accommodation
$854.08 per week each — couple, both qualifying

To receive NZ Super you must normally have lived in New Zealand for at least 10 years since age 20 (including 5 years since age 50), and you must apply through Work and Income. KiwiSaver is designed to supplement NZ Super, not replace it — the 2025 Massey University Retirement Expenditure Guidelines found many retirees face a weekly gap of hundreds of dollars between NZ Super and their actual spending.

Your Options at 65

1. Lump Sum Withdrawal

You can withdraw your entire KiwiSaver balance as a lump sum. This gives you full control — you can spend it, invest it elsewhere, or pay off your mortgage. The withdrawal is tax-free.

Pros: Flexibility, full control.
Cons: You must manage the money yourself; there's a real risk of spending it too quickly or investing it poorly.

2. Regular Income Streams

Some providers offer the option to receive your KiwiSaver savings as regular income payments:

Fixed-term income: Regular payments over a set number of years
Lifetime income: An annuity that pays you for the rest of your life
Flexible withdrawals: Take partial amounts as needed

3. Leave It Invested

You can leave your money in your KiwiSaver account and keep it invested (withdrawing at any time). This lets your savings keep growing while you draw down gradually — a good option if you have other income early in retirement.

Which Option Is Right for You?

Consider:

Your total savings: A small balance is best taken as a lump sum. A large balance may benefit from income options.
Other income sources: If you have NZ Super, other investments, or a paid-off home, you may need less from KiwiSaver.
Life expectancy: If you expect to live well past 65, regular income may be safer than a lump sum.
Debt: Paying off high-interest debt with a lump sum is usually the best first move.

Tax in Retirement

Withdrawals from KiwiSaver after age 65 are tax-free. Investment earnings within your KiwiSaver account are taxed at your applicable Prescribed Investor Rate (PIR), which is typically lower than your income tax rate. Check your PIR is still correct once your income drops in retirement.

Common Mistakes

Forgetting to apply for NZ Super — it is not paid automatically; apply through Work and Income around age 64½.
Staying in a growth fund at 65 — a market crash right after retirement can permanently damage your income; shift to conservative or balanced in the years before 65.
Spending the lump sum too quickly — a rule of thumb is to withdraw no more than 4% of your balance per year.
Ignoring the tax-free status — unlike most investments, KiwiSaver withdrawals at 65 attract no income tax; factor that into your planning.

Next: Saving Extra — Voluntary Contributions →

Rough Retirement Numbers

A useful planning baseline: NZ Super for a single person living alone is $555.15 a week after tax (April 2026 rate). A $200,000 KiwiSaver balance drawn down at a sustainable 4% a year adds $8,000 — about $154 a week — giving roughly $709 a week before other income. The 2025 Massey Retirement Expenditure Guidelines suggest a "no frills" lifestyle costs more than NZ Super alone for most retirees, which is why even modest KiwiSaver balances make a real difference.

For personalised numbers, Sorted's retirement calculator (sorted.org.nz) models your balance at 65 under different rates, funds, and fees. If you're within five years of retirement, consider a one-off session with a licensed financial adviser — the choice between lump sum, income stream, and leaving it invested is one of the biggest financial decisions you'll make.