Making the most of KiwiSaver savings in retirement

A little planning can go a long way towards a comfortable future. Now is a good time to consider how your KiwiSaver savings could work for you in or near retirement.

Are your retirement savings on track?

You can keep investing with KiwiSaver

Did you know you don't have to withdraw all - or any - of your KiwiSaver savings simply because you become eligible to do so? Continuing to invest may have real advantages, because the ASB KiwiSaver Scheme will continue to offer you:

  • A regular withdrawal facility that gives you access to cash while you're investing. You can withdraw a minimum of $100 fortnightly, monthly or quarterly or lump sum amounts of at least $500 each time.
  • Low-cost access to a range of professionally managed diversified funds.
  • The potential to earn a greater return than the interest traditionally received on a savings account or term deposit.

If you don't withdraw all your investment, you'll need to keep a minimum of $2,000 in your ASB KiwiSaver Scheme account.  

Investing with KiwiSaver gives you flexibility in retirement

A lot of Kiwis are wondering what options they have available to them to get a better return on their money or if it makes sense to move some of their savings into their KiwiSaver account. Before you decide to invest, here's some things to ask yourself:

  • Are you looking to get a better return on your money and are you willing to take on a bit more risk to achieve that? Investing some of your money in asset classes with the potential for better growth, like shares and property, has the potential for volatility (ups and downs) in returns over the short term, but they do tend to outperform cash over the longer term. 
  • How many years are you looking at being in retirement? It's important to consider not just will your money last, but will it maintain its purchasing power over time with the increasing cost of goods and services. Having exposure to a portion of growth assets in your investment can protect the purchasing power of your money over time and provide the potential for your money to last longer.
  • How much risk can you tolerate? You need to balance a better return with still being able to sleep at night if market events result in short term drops in the value of your investment.  

Considerations before adding more money to your KiwiSaver account

If you decide to add money into your KiwiSaver account, you should consider the below factors:

  • You have enough money for everyday expenses. If you need to start drawing on the money straight away, consider leaving at least 12 months drawings outside the investment.
  • You have repaid any high interest rate debt like credit cards or personal loans.
  • You have repaid your mortgage and are now retired, or are comfortable that it will be repaid by the time you retire.
  • You have enough money set aside for both planned and unplanned expenses. As a general rule, ensure you have a minimum of three months expenditure set aside for any unplanned expenses and enough to cover any planned spending in the next three years such as a new car, renovations or holidays.
  • You don't need to draw on your additional contributions during periods of volatility (ups and down in your balance) so you can remain focused on your goals and not react to short term market movements.

Making contributions to your KiwiSaver account

If you want to make contribution to your ASB KiwiSaver Scheme account, you can do so by:

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If you're still working you can keep making regular contributions from your wages. If you want to stop making regular contributions, you'll need to complete a non-deduction notice and give it to your employer.

Get more with ASB

Interests in the ASB KiwiSaver Scheme (Scheme) are issued by ASB Group Investments Limited, a wholly owned subsidiary of ASB Bank Limited (ASB). ASB provides Scheme administration and distribution services. No person guarantees interests in the Scheme. Interests in the Scheme are not deposits or other liabilities of ASB. They are subject to investment risk, including possible loss of income and principal invested. For more information see the ASB KiwiSaver Scheme Product Disclosure Statement available from this website and the register of offers of financial products at www.disclose-register.companiesoffice.govt.nz (search for ASB KiwiSaver Scheme).

ASB's terms apply. ASB Rewards Programme Terms and Conditions apply.

ASB KiwiSaver Scheme Making the most of KiwiSaver savings at retirement