Insights
What really happens after 65?

Turning 65 is a big milestone — and for many New Zealanders, it's also when people get access to their KiwiSaver account balance and you move into a whole new phase - you go from 'saving for retirement' to 'spending' once retired. This article helps guide you on what to expect. There are plenty of myths floating around about what happens at 65, so we break it down clearly: what changes, what stays the same, and how to make the most of your retirement savings.

Once you hit 65, your KiwiSaver gets unlocked and becomes a flexible investment account designed to support you throughout retirement

- You can withdraw some or all of your savings.
You can choose regular withdrawals, lump-sum withdrawals, or withdraw everything at once — whatever fits your situation.

- Your money doesn’t automatically get paid out.
A common misconception is that KiwiSaver “pays itself out.” It doesn’t. Your money simply stays in your KiwiSaver account until you decide what to do with it.

- You can keep investing and growing your wealth.
A lot of people benefit from keeping a good portion invested, especially if they don’t need the full balance immediately. KiwiSaver can continue to be a useful long-term investment tool in retirement.

A couple of things change once you reach 65:

1) Government contributions stop.

You’ll no longer receive the annual government top‑up after 65.

2) Employer contributions may stop.

Employers are no longer required to contribute once you turn 65. However, this is still worth raising during contract negotiations, as some employers continue to make contributions on a voluntary basis or may be open to negotiating this with you. Check with your employer, as every contribution can make a difference.

Your KiwiSaver account effectively becomes a flexible investment account designed to support you throughout retirement, not just at the start of it. Retirement today looks very different than it did even a generation ago. Many people don’t stop working at 65 — In fact, close to half of people aged 65–69 are still in the workforce, which can make keeping your money invested a smart option.

KiwiSaver can play an important role in funding a major part of your retirement, particularly when access to your savings may span many years.

Keeping your KiwiSaver account open can help because:

- You may still be earning income
Your KiwiSaver balance can supplement any shortfalls rather than needing to fund your whole lifestyle immediately.

- If you keep contributing, maybe your employer will too
As mentioned above, while employers are no longer required to contribute after 65, some are willing to do so if negotiated through your employment agreement.

- Some of your savings can be invested to help combat inflation.
Keeping some money invested can help your savings keep pace with rising living costs over retirement. Bank savings accounts and term deposits generally offer lower returns that may not keep up with inflation over time, so having some money invested can help offset the impact of rising everyday expenses.

- You can spread out your withdrawals.
Rather than taking everything at once, withdrawing gradually can help your savings last longer.

- You’re free to stop contributing at any time.
There is no requirement to keep paying into your KiwiSaver account.

- You can even opt out and opt back in later.
This is helpful if your circumstances or income changes over time.

For most people, retirement is not a single moment, but a long stage of life. Your KiwiSaver account can remain part of your strategy throughout that entire period.

A lot of avoidable missteps happen right at retirement age. Here are the big ones:

- Withdrawing everything too quickly
Without a plan, people sometimes take out their full balance and lose the long‑term benefits of being invested. Speaking to a professional can help you build a sustainable withdrawal approach.

- Not reviewing their investment strategy.
Your fund choice should reflect your goals, your spending needs, and your investment timeframe. Every fund type can have a role at different stages. The key is choosing one that aligns with your goals, your attitude to market movements, and how you plan to use your money throughout retirement. We explore this further in our recent blog, How to stick to your money plan - and win.

Here’s a simple checklist to help you make good decisions as you approach (or reach) 65:

[ ] Review your fund choice — will a Conservative, Balanced, Growth, High Growth, (or a mixture of fund types) be the best fit for you after 65, as you start to access your hard‑earned savings?

[ ] Check whether your employer will continue contributing and consider asking for this as part of your contract review.

[ ] Plan a withdrawal strategy — lump sums, regular payments, or a mix. A financial adviser can talk about the implications of the different withdrawal options and what they could mean for you.

[ ] Think about your income sources in retirement, including:

- New Zealand Super

- KiwiSaver

- Other investments or savings

- Part‑time work

Once you know what you'll have, consider what work you could do if you need more.

If you’re unsure about any of this and want some guidance, speak with our inhouse adviser, Trent. He can help you understand how your investment timeframe, expected spending, and risk comfort level fit with your KiwiSaver account after 65 — and help you develop a plan for your future.

----------------------------------------

This blog is for information purposes only. This blog is not financial advice and should not be taken as providing investment, legal or tax advice.

Pathfinder Asset Management Limited is the issuer of the Pathfinder KiwiSaver Plan and Pathfinder Investment Funds. Product Disclosure Statements for the offers are available here.

We encourage all investors to receive financial advice before making their investment decision. Pathfinder is authorised to provide financial advice if you would like support with your investment decisions. You can learn more about our service in our Financial Advice Provider (FAP) disclosure statement.