NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business / Personal Finance / KiwiSaver

Tamsyn Parker: Should you take your money out of KiwiSaver at 65?

Tamsyn Parker
By Tamsyn Parker
Business Editor·NZ Herald·
3 Jun, 2014 01:50 AM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Should you cash up your KiwiSaver savings at 65? Photo/ Martin Sykes.

Should you cash up your KiwiSaver savings at 65? Photo/ Martin Sykes.

Tamsyn Parker
Opinion by Tamsyn Parker
Tamsyn Parker has been Business Editor at the New Zealand Herald since April 2023. She was previously the Personal Finance Editor and has been with the Herald since 2007.
Learn more

I haven't really thought about what I will do with my KiwiSaver money when I finally get my hands on it - 65 seems too far away when you are in your 30s and who knows if that will still be the age you can take it out by then!

But the topic has come up of late because my dad is turning 65 this year and for a number of friends their parents will also be in that age-group.

Weekend Herald columnist Mary Holm has also had a number of readers requesting advice on taking their money out of KiwiSaver.

See her responses here.

You can apply to get your money out of KiwiSaver once you turn 65 as long as you have been a member for five years.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Once you are eligible to get hold of your nest egg it's no longer compulsory for your employer to contribute money to your savings and the government will also stop giving you its annual contribution.

But just because you can take the money out - should you?

For many people the balances in their KiwiSaver accounts will still be small at this stage.
Jordi Garcia, a financial adviser on Auckland's North Shore, says for many of his clients their KiwiSaver savings are just a nice addition to their investment portfolios.

He suspects many will just use the money to go on holiday or buy a new car.

But Garcia says the decision to cash up the money is up to the individual and what kind of lifestyle they want in retirement however those who retire at 65 need to remember they could still have another 20 to 25 years to live.

Discover more

Opinion

Kiwisaver: Bar for accepting hardship claims high

24 Feb 04:30 PM
Opinion

KiwiSaver: Addressing our fritter nation

22 Apr 09:46 PM
Banking and finance

KiwiSaver complaints on the rise

28 Apr 08:40 PM
Opinion

Tamsyn Parker: Oh no - more KiwiSaver tinkering?

28 Apr 10:00 PM

"You could still be a reasonably long term investor."

Taking the money out of KiwiSaver also means you have to decide where to put it instead.

Advertisement
Advertise with NZME.

For those with high interest debt such as credit card debt or loans it makes sense to pay that off.

The money could also be used to help reduce mortgage debt.

But if you're debt free and don't need the money straight away it could be an option to leave it in KiwiSaver.

Garcia says KiwiSaver is relatively low cost compared to other managed fund type investments and your money is spread across a range of investments unlike buying shares in one or two companies.

Sorted's KiwiSaver fund finder shows fees range from 0.76 per cent to 1.89 per cent for conservative KiwiSaver funds.

Comparing other managed funds on rating agency Morningstar's website shows even a conservative fund run by the same company was likely to cost more than their KiwiSaver fund.

Advertisement
Advertise with NZME.

Garcia says conservative KiwiSaver funds should also produce a higher return than a bank term deposit over time because they have some exposure to growth assets like shares and property.

According to Sorted the average annual return for a conservative KiwiSaver fund between April 2009 and March 2014 was 5.57 per cent after fees and taxes.

Reserve Bank figures show average interest rates on six month term deposits over the same time period ranged between 3.76 per cent and 4.82 per cent before tax was taken off.

Garcia says those who park their money in a term deposit also need to remember they have to wait until the end of the term before they can get access to it.

Accessing KiwiSaver savings can also be a challenge the first time round with applicants having to provide detailed information about themselves.

The wait can be around six weeks depending on the provider.

Advertisement
Advertise with NZME.

But Garcia says if you don't take all the money out accessing it after that should be much quicker.

Those who don't want to access the money for a long time frame such as more than 10 years could also consider taking on more risk than that involved with leaving it in a conservative portfolio.

But Waikato-based financial adviser Nigel Tate says it's really important people are comfortable with the level of risk they are taking with their money.

"The capacity to carry risk might be there but the attitude might not be."

Tate says getting the balance right is an art rather than a science.

Savers should ask themselves how would they cope if something went wrong like falling sick and how they would feel if the value of their investments went down.

Advertisement
Advertise with NZME.
Save

    Share this article

Latest from KiwiSaver

Premium
Companies

$30 billion blast-off: Why Rocket Lab just hit an all-time high

08 Jul 03:33 AM
Premium
Opinion

Mary Holm: The ways to make your cash last in retirement

04 Jul 05:00 PM
KiwiSaver

'It's security': Push for KiwiSaver access to aid young farmers

27 Jun 05:00 PM

From early mornings to easy living

sponsored
Advertisement
Advertise with NZME.

Latest from KiwiSaver

Premium
$30 billion blast-off: Why Rocket Lab just hit an all-time high

$30 billion blast-off: Why Rocket Lab just hit an all-time high

08 Jul 03:33 AM

Recent US political developments impact Rocket Lab, Infratil and Allbirds.

Premium
Mary Holm: The ways to make your cash last in retirement

Mary Holm: The ways to make your cash last in retirement

04 Jul 05:00 PM
'It's security': Push for KiwiSaver access to aid young farmers

'It's security': Push for KiwiSaver access to aid young farmers

27 Jun 05:00 PM
Premium
Mary Holm: Should I pay off my student loan or invest in an index fund?

Mary Holm: Should I pay off my student loan or invest in an index fund?

13 Jun 05:00 PM
Solar bat monitors uncover secrets of Auckland’s night sky
sponsored

Solar bat monitors uncover secrets of Auckland’s night sky

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP