It is now possible for anyone over the age of 65 to join or re-join KiwiSaver. There are many retirees who cashed in their KiwiSaver funds without consideration of the options available to them, and there are some who just never got around to joining. For these people, there is now a reprieve. As of 1 July, being over 65 does not exclude anyone from joining KiwiSaver.

More people are working past the age of 65. While it is not compulsory for employers to continue paying contributions once a member turns 65, many do. As the funds are not locked in past the age of 65, KiwiSaver can be used to add to retirement savings while still having access to the funds. Additional payments can be made into KiwiSaver at any time as a lump or regular contribution. These payments are made direct to your provider rather than through IRD. For example, some people choose to save their NZ Superannuation payments into KiwiSaver while they are still working.

KiwiSaver is best used as a diversified portfolio of funds for medium and long-term use. Investment funds are spent gradually over retirement, and most funds will be spent between 5 and 25 years after retirement. That’s a long investment time frame which requires a higher rate of return than bank deposits.

For those with smaller portfolios, KiwiSaver is a cost effective investment option. It offers diversification between fixed interest, property and shares along with low fees. Over the age of 65, withdrawals can be made at any time as a lump sum or regular amounts to top up income. If you are intending to retain your KiwiSaver funds over the long term, it pays to get advice on which investment option is appropriate for you based on your investment time frame.