Can contribute to wife's fund

I am self-employed and have been a member of KiwiSaver for nearly a decade, during which time I saved diligently for my retirement, which is still slightly more than 10 years away. Similarly, my wife has saved for her retirement with her KiwiSaver account. With the change of prime minister recently, and speculation the age of eligibility for NZ Super may need to be raised, I have realised I have mismanaged my KiwiSaver account all these years. Thinking about how a rise in the pension entitlement age would affect me, it has dawned on me that as my wife is 18 months older than myself, I should have been contributing most of my savings into her KiwiSaver account rather than my own. The reason of course is that she will reach retirement age before I do, and if both our contributions had gone to her account, these savings would then become available to us both, when I was still 18 months shy of normal retirement. Is there anything preventing me from contributing into my wife's KiwiSaver account, while contributing just enough into my own to gain the annual tax credit?

You raise an interesting point. Yes, the debate about raising the age of eligibility for NZ Super above 65 has been rekindled following John Key's resignation.

According to the KiwiSaver Act 2006, "the KiwiSaver end payment date is the later of - (a) the date on which the member reaches the New Zealand superannuation qualification age; or the five year qualification date".

This means that raising the age of eligibility for NZ Super will automatically lift the age at which members can access their KiwiSaver, unless the Government changes the KiwiSaver rules.

Is it crucial that you have access to all your savings when your wife turns 65? On reaching the age of eligibility many KiwiSaver members are choosing to continue with their savings rather than withdraw all their funds.

It may not be a bad thing for you to access your wife's KiwiSaver funds for whatever spending you need to do when she reaches the age of 65, and defer the other expenses for 18 months or so.

KiwiSaver is a flexible investment product for members who have reached the age of eligibility.

As long as members keep their account open, they can switch from one fund to another and even from one scheme to another long past the age of eligibility.

Some may use their KiwiSaver to invest in overseas shares while others will look for lower risk, cash or fixed interest options according to their appetite for risk and their investing timeframe.

You can set up regular withdrawals to your bank account to top up your income from NZ Super.

If it would suit you to have access to a larger sum when your wife turns 65 then you can certainly direct more of your savings into her account and just the minimum into your own to receive the annual government top up of $521.

This is a personal decision the two of you can make. KiwiSaver accounts cannot be owned jointly, so make sure that you both have a valid will so there are no complications or unnecessary delays should anything happen to either of you.

Directing more money into her account than yours does not have any implications in the event of a marriage breakdown, as KiwiSaver accounts are relationship property and are included in the division of assets.

- Shelley Hanna is an authorised financial adviser FSP12241. Her free disclosure statement is available on request by calling 06 870 3838 or go to www.peak.net.nz. The information in this article is general and is not personalised. Send your KiwiSaver questions to shelley.hanna@peak.net.nz.