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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 investment could work for you in or nearing retirement.

Are your retirement savings on track?

Being in the right fund or making a lump sum contribution to provide cashflow when you need it, will ensure you continue to enjoy the flexibility KiwiSaver can offer in retirement. Check out our  handy tips on managing KiwiSaver when you're over 65.

Use our calculator to see how long your savings might last in retirement.

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 for you, 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.
  • 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.

You'll need to keep a minimum $2,000 balance in your ASB KiwiSaver Scheme account to use this facility.

 

Investing with KiwiSaver gives you flexibility in retirement

A lot of Kiwi's 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. 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, also has the potential for volatility (ups and downs) in returns over the short term although 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 KiwiSaver

If you decide to move money into something like KiwiSaver, ensure you don't need to draw on your KiwiSaver investment during periods of volatility (ups and down in your balance) so you can remain focused on the longer term and not react to short term market movements. You should ensure:

  • 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 3 months expenditure set aside for any unplanned expenses and enough to cover any planned spending in the next 3 years such as a new car, renovations or holidays.

Making contributions to your KiwiSaver account

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

Get started

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 KiwiSaver Scheme Making the most of KiwiSaver savings at retirement