Heading into retirement and don't know what you will do with your KiwiSaver cash?

You're not alone, according to research by the ANZ.

The bank's latest retirement savings barometer found 40 per cent of those surveyed were unsure of their plans for the money once they hit 65.

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A further 35 per cent said they would take it out while 21 per cent planned to leave it in their KiwiSaver fund.

Of those who planned to take it out around half (53 per cent) said they would reinvest it in a term deposit or similar account.

When people turn 65 and are eligible to gain access to their savings they can either take part or all of the money out of KiwiSaver or leave it in and withdraw it later.

John Body, managing director of ANZ Wealth, said around 44 per cent of its ANZ KiwiSaver members withdrew all of their money when they turn 65 but the bank was starting to see more members leave their money in KiwiSaver.

"We currently have over 7,000 members of the ANZ KiwiSaver Scheme who are over 65.

"In the current low interest environment, many of these members are choosing KiwiSaver over term deposits given the performance of KiwiSaver funds and the fact they can withdraw all or some of their investment at any time."

The average return for conservative KiwiSaver funds was 6.2 per cent per annum for the five years to September 30, according to research firm Morningstar.

While term deposit rates have sunk under 4 per cent.

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Body said many people turned 65, withdrew all of their money from KiwiSaver and then invested some of it in a term deposit.

"But they could leave their money in KiwiSaver, continue to earn investment returns, and access their money any time they want - unlike term deposits which are for a set time."

Body said the uncertainty shown in the survey indicated many people would benefit from some sound financial advice around KiwiSaver.

We're all living longer and young people today may need their retirement savings to last for 30 years or more so it's vital that you have a plan to both save enough and make good use of the money you've saved.

The survey also found people's confidence in their ability to meet their retirement income goals had dipped since the last survey in April.

Those who felt confident declined from 44 per cent to 41 per cent with women's confidence dented the most.

Of the men surveyed 51 per cent felt confident, down from 53 per cent and of the women it was 33 per cent down from 38 per cent.

Just under 700 people were questioned for the barometer.