The latest data from the FMA KiwiSaver Report 2025 has shown how financial habits and lifestyles of the over-65s are changing.
Instead of cashing in their entire KiwiSaver savings once they hit 65, members are increasingly drawing down their KiwiSaver funds gradually (decumulating) and using it as an income stream.
As a whole, they’re also withdrawing less money, in fewer transactions.
Total withdrawals by members aged over 65 decreased by 1.3 percent to just under NZD 3 billion, while the number of withdrawals fell from 36,652 to 31,470, a 14.1 percent decline.
These declines are in spite of there being more members aged over 65 and eligible to withdraw.
For years, the accepted wisdom has been that when you reach 65, it’s time to move your retirement savings into a conservative fund, something lower risk and more stable.
However, your investment strategy at retirement shouldn’t be based solely on your age, but on when you actually plan to use the money.
“If you’re not drawing down your KiwiSaver savings all at once, and according to this FMA Report, many people aren’t, you could still have 20 to 30 years ahead of you. That’s a long time to stay too conservative, and potentially a big opportunity cost from not staying with a growth or balanced fund for longer,” said Stephanie Whittaker, a Generate Wealth Adviser.
It’s also a great argument for getting KiwiSaver advice at all stages along the way, not just when you first sign up.
"At Generate, we know that good advice makes a real difference. With over 90 percent of our members having spoken to an adviser, they’re more likely to be in the right fund for their goals, no matter what their age," said Whittaker.
Generate is an award-winning New Zealand-owned KiwiSaver and Managed Fund provider managing over NZD 8 billion on behalf of more than 170,000 New Zealanders.
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