The Investment Traps to Avoid When Accessing Your KiwiSaver Funds at 65

Our guide outlines the ten worst investments to avoid when accessing your KiwiSaver funds at 65. We highlight illiquid assets, high-risk schemes, scams and costly mistakes to help you safeguard your retirement.

The Worst Investments to Avoid When Accessing Your KiwiSaver Funds at 65

Updated 26 December 2024

Summary:

KiwiSaver plays a critical role in funding retirement; as of December 2024, over $100 billion was invested, and it keeps growing.
However, many retirees approaching 65 don't know what to do with their fund and contemplate withdrawing it as soon as possible and investing the money very differently. In many cases, leaving the money in KiwiSaver is a way to minimise risk and maximise returns, depending on the fund(s) selected.
The goal of this guide is to empower everyone to make informed decisions and ensure KiwiSaver funds continue to be invested wisely, avoiding unsuitable or high-risk options.
Our guide explores the ten worst investments to avoid when accessing your KiwiSaver funds, including illiquid investments such as rental properties, unlisted funds, high-pressure "guaranteed" investment schemes, risky ventures like startups or speculative funds, overly generous financial support to family and friends and the commonly misunderstood process of buying into retirement villages.

Know This First: Once you turn 65, there is no inherent downside to keeping your savings in KiwiSaver. In fact, doing so can provide significant benefits, such as stability, liquidity and continued access to a range of professionally managed funds. If you are unsure about what to do next, taking no action immediately is entirely acceptable. Many KiwiSaver schemes even offer options to reduce risk, such as switching from a balanced fund to a conservative fund, or selecting multiple funds to match your investment with your current financial needs and risk tolerance. Some New Zealanders argue that leaving all your money in low interest accounts or term deposits could limit your retirement options, so for these reasons, it's essential to balance risk and needs.

Our guide covers:

Know This: Leaving your money in KiwiSaver means it remains easily accessible - you can withdraw funds as needed without locking them into illiquid investments or facing exit penalties. This flexibility ensures that your savings continue to grow while providing you with the security of knowing your money is there whenever you need it. You do not need to take your money out of KiwiSaver when you turn 65.

Christopher Walsh
MoneyHub Founder

MoneyHub Founder Christopher Walsh shares his views on why what to do with KiwiSaver age 65 and beyond needs serious consideration:

"It doesn't matter the size of your KiwiSaver balance; for many New Zealanders, what they do with it once they turn 65 will influence the rest of their life. KiwiSaver is likely to be a more significant portion of liquid assets (e.g. not housing) as working New Zealanders get older, but the risk of misusing it is growing.

In the past few years, there have been dozens of media stories about older New Zealanders being scammed by fake term deposits. Separate to those are 'wholesale investments' where many older New Zealanders have deposited large amounts of money for a fixed-interest 'investment' that was then converted to 'equity' in the company because of repayment difficulties. This Stuff.co.nz article explains more specific to one such company.

There is a lot more under the surface I hear about every week - there are people out there who want you to transfer your money to them, and they'll offer 'investments' and 'opportunities' to try and convince you. Facebook, YouTube, other social media and even local print and online media are awash with advertisers offering investment products - it's critical to know what to look for and how to know what's best avoided. This guide outlines a process you can use to protect yourself and carefully decide what's right for you.

I've led this guide because I know many traps are out there. The imprisonment of Mark Bryers in December 2024 (who ran BlueChip, a property investment business until its collapse in 2008) reminded me of the financial and personal severity when an investment goes wrong. Losing a significant amount of your retirement money is an incredibly stressful (and almost always irreversible) chapter in your life that will cause unimaginable hurt and guilt. However, I believe common mistakes can be easily avoided by thinking carefully about where your money is going. This means ignoring the hype and projected returns of unproven investments and acting with common sense with trusted opportunities that don't lock up your funds for an unspecified time.

While this guide is bearish on buying investment property in retirement, it should not be read to mean that housing is a bad investment. In fact, anyone who has a mortgage-free home by the time they hit 65 will find retirement a lot easier, given NZ Super payments are arguably only sufficient for retirees who own a home and don't use the money to pay rent.

At 65, one of the most critical considerations is ensuring you clearly understand how easily you can access your money from any investment, especially in an emergency. Liquid investments like shares on the sharemarket, which, assuming the companies are mid or large-cap, can be sold on any trading day, or managed funds, which can be redeemed in a few business days, offer flexibility. Even term deposits, while less liquid, can sometimes be broken early with only a minor loss of interest.

In contrast, investments like unregulated schemes, property and housing, unlisted funds, or so-called '10% p.a. return deposits' often come with complex terms. While these might seem appealing upfront, the reality is that accessing your money can be slow, uncertain, or even impossible in some cases, depending on the specific investment. It's easy to put money in, but getting it back when you need it can be a different story entirely. Understanding liquidity, the withdrawal terms and, arguably most importantly, the reliability of those stating the terms are essential to avoid financial stress.

Please take the time to read our guide carefully—I genuinely want you to enjoy a great retirement without the stress or regret of discovering that an investment you thought was 'safe' or 'solid' was all risk and no reward. Your KiwiSaver and retirement savings represent years of hard work and careful planning; they are far too important to leave to chance or assumptions. Thoughtful, informed decisions now can make all the difference for your peace of mind and financial security in the years to come".

The 10 Worst Investments to Avoid When Accessing Your KiwiSaver Funds at 65

Turning 65 unlocks your KiwiSaver balance. If you're considering withdrawing your money and investing it somewhere else, our list below highlights the investments you should think twice about and why they may be best avoided.

A Rental Property - the Ultimate Illiquid Investment

Property has historically been seen as a 'sure bet', but cashing in KiwiSaver funds to buy property to generate regular retirement income is an expensive way to lock up a large sum of money. It's generally accepted that retirees are most suited to liquid assets (such as managed funds, term deposits and savings accounts) as they are easiest to cash in sums as needed - property, however, is not an investment you can sell within a week.

MoneyHub Founder Christopher Walsh comments:
"Buying a rental property as a retirement strategy might seem like a great idea - you get a regular income, you can see your investment, and there is the potential for capital gains. However, I argue that the reality can be very different for many retirees. Properties are illiquid, meaning you can't easily access the money tied up in them if you need it. Maintenance costs, rates bills, new roofs, problem tenants, estate agent fees, managing agent costs, housing market volatility and downturns in the housing market can quickly turn a 'safe' investment into a financial burden.

I can't stress this enough - liquidity is crucial for retirees. As you age, having investments that can be quickly converted into cash is essential for managing emergencies, covering unexpected expenses like elective procedures (where you want to avoid waiting lists), and funding critical home repairs and replacing cars. Liquidity doesn't mean sacrificing returns or taking on low-risk investments - it simply ensures that your money is accessible when you need it most.

On the other hand, property often ties up significant amounts of money in an asset that can take time to sell and offers uncertain returns. It's also time-intensive to manage. To be clear, I'm not anti-property - I'm a property owner and an (accidental) landlord myself with no intention of selling. However, when many people in their 60s and 70s look to downsize, taking on another home as a way to generate income brings unique risks and limitations that are arguably best avoided given the lack of flexibility".

Developing and Testing DIY Investment Strategies in the Sharemarket

Retirement gives you a lot of free time, but that can be dangerous if you get bored and decide to take an interest in local and overseas shares without an investing strategy. It's hard to beat the top-performing index and actively managed KiwiSaver funds from trusted schemes. While shares are liquid, there are risks.

Withdrawing KiwiSaver funds and deciding to 'play the markets' can feel exciting, especially if you've dabbled in investing before. But the stakes are incredibly high when you're using your KiwiSaver money, which has been accumulated to support your retirement goals. The downside can come quickly, and losses will be locked in if you panic and sell.

MoneyHub Founder Christopher Walsh comments:
"Markets are unpredictable, and unless you have the expertise and time to manage your portfolio effectively, you will likely expose yourself to unnecessary risk and losses. The losses can be significant, and attentively watching the sharemarket with fear about how it will affect your nest egg is an unpleasant way to spend your retirement.

Financial advisers, financial journalists and trusted financial experts agree that investing through a reputable KiwiSaver or investment fund can often deliver better results with less stress and much lower risk than a DIY approach.

Investing in Lifestyle Once You Turn 65 While Ignoring the Ongoing Long-Term Costs of Retirement

It may be tempting to cash in KiwiSaver for things you want to buy, but without careful consideration, it's a big risk unless you have other investments and assets. A new car, a holiday to Europe and a roof replacement can quickly burn through $100,000 - it's fine if you can afford it, but it's important to make sure you keep an eye on how much you spend. New Zealanders are living longer, so KiwiSaver funds need to be conserved and used wisely because NZ Super is not a lifestyle payment - it's paid to cover essential costs, not private healthcare, dental work and overseas holidays. For many, per this December 2024 interest.co.nz story, the payment still leaves many struggling.

MoneyHub Founder Christopher Walsh comments:
"One overlooked aspect of retirement planning is the cost of simply being retired. Healthcare, home maintenance, car costs, heating, food, travel and hobbies are getting more expensive.

Some retirees, unfortunately, withdraw a significant portion of their KiwiSaver quickly after reaching 65. However, there is a risk of not fully accounting for these expenses and not knowing how much money will be needed beyond NZ Super. Some New Zealanders approaching retirement assume NZ Super will cover everything, but the payment is modest at best. NZ Super is designed to supplement your savings, not replace them, and what you get paid is nowhere near the average New Zealand salary. This makes it critical to protect KiwiSaver funds in the long term".

Getting Involved in Overseas-Based Investments You See Online

Ads on social media and the internet promoting an investment are often bait for information gathering - please do not share how much you want to invest (e.g. a dollar amount) by answering questions on unfamiliar websites - you have no idea who is behind them, and their motives. Once they have your details (name, number, how much money you have), they have an incentive to get it. Stay cautious online. Artificial Intelligence is fooling retirees with videos of politicians and other well-known New Zealanders promoting investing platforms - it's a scam and must be avoided. This story from 2024 serves as a cautionary tale.

MoneyHub Founder Christopher Walsh comments:
"It's a harsh reality, but retirees are particularly vulnerable to investment scams and predatory schemes. Many 'opportunities' are marketed as safe or low-risk, with guaranteed returns, but if they're overseas and you've learned about them online, they are likely to be scams. The problem is they're getting more sophisticated, and victims who realise they've been scammed, in many cases, won't report the crime because they're embarrassed. This is not good news for raising awareness".

Investing in High-Risk Startups or Private Companies Directly or Via 'Venture' Funds - The Fail Rate is Very High

MoneyHub has noticed an increasing number of venture capital organisations (locally and overseas) looking to raise money from New Zealand investors, including retirees. The idea is that you give the investment company money, and their investment managers pick what to invest in, charging you a fee every year for doing so and helping the startups grow. Later on, if the venture fund picked the next Xero, RocketLab or Facebook, you make a lot of money when it floats on the sharemarket or gets acquired.

It sounds exciting to invest in, but the risks are high, and the chances of investing early in the next billion-dollar companies are very low. You may also wait years to get any money back - some funds and investments have a multi-year lock-in period. And, if you invest in a company directly, it's critical to remember that private companies are illiquid. This means selling your stake of whatever you invested in takes time and relies on there being a buyer. This can take months or even years so you'll wait a long time for your money back if you need it in hurry.

MoneyHub Founder Christopher Walsh comments:
"While supporting a promising startup or portfolio of innovative New Zealand companies may seem exciting and interesting, retirees need to focus on stability and liquidity over potential gains given the risks in venture capital and off-market investing.

I've been at venture fund investor events where older New Zealanders appear unaware that what they're invested in is only going to have its value determined after several years. It may even be more than ten years, arguably unsuitable for retirees who need ready access to their money. The drinks may flow at the investor evenings and drinks receptions, but getting a cash return might not be as easy.

I receive several venture fund newsletters and always read their reports with caution. Based on my professional experience valuing distressed debts and equities for Merrill Lynch in London, I can see how challenging it is to make early-stage startups succeed. Write-downs are inevitable in many cases. While venture capital is essential for driving innovation and economic growth, retirees don't need to take on this level of risk with their hard-earned KiwiSaver savings. Your KiwiSaver is not venture capital, and speculative investing is no place for retirement funds".

Locking Money in Long-Term, Illiquid Funds with Exit Penalties

MoneyHub has observed that unlisted funds and certain investment schemes are increasingly targeting retirees with promises of high returns. These funds often involve locking in your money for 5 to 10 years - or even longer - and typically impose substantial penalties if you try to withdraw your money early.

The pitch might initially sound appealing, especially if the "projected returns" are advertised as much higher than term deposits or managed funds. Still, the reality can turn into a financial mess. The case of Du Val Investments, which has seen investors unsure if they'll ever get any of their money back after investing in a fund offering '10% p.a. returns', is a cautionary tale.

What these schemes often fail to disclose upfront is the inflexibility they impose. If an emergency arises - be it a health issue, home repair, or family need - you may be unable to access your funds without facing steep financial penalties. Worse still, these investments often lack transparency, leaving you unsure of where your money is allocated or how it is performing over time.

Lastly, unlisted property funds are not only illiquid but can also demand additional contributions from investors if there is a lack of cashflow and the management doesn't want to borrow. You may be asked to invest more to cover costs for property refits or maintenance between tenants - this is a a hidden risk many may overlook.

MoneyHub Founder Christopher Walsh comments:
"These funds lure investors, especially retirees, with flashy marketing and promises of consistent, high returns. But they don't tell you how difficult it will be to access your money when you need it. I've seen retirees trapped in these funds, watching helplessly as their financial needs go unmet while their savings sit inaccessible.

Flexibility and liquidity should be the cornerstones of any retirement investment strategy. If you're considering a fund with lock-in periods or exit penalties, read the fine print carefully and ask yourself: can I afford to tie up this money for years? If not, these funds are best avoided".

Investing in Your Family by Giving Away Too Much Money to Your Kids or Family Members

The 'Bank of Mum and Dad' operates widely throughout New Zealand, and some parents decide to support their children and other family members given the general cost of living and financial hurdles such as home ownership.

However, giving away significant portions of your KiwiSaver funds early in retirement can leave you in a precarious position. New Zealanders now live longer than ever, and unforeseen costs - such as private healthcare (to avoid long waiting lists), dental work, or home modifications - can quickly deplete your KiwiSaver funds.

Generosity without boundaries often comes with hidden risks. Once the money is given away, it's no longer accessible to you, and you may struggle to ask for it back if your circumstances change. In many cases, it goes wrong - financial support creates dependency, leading to ongoing requests that further deplete your resources. Unless you stipulate that the money must be used for a specific purpose, such as a first home, there are no restrictions, and you could find it spent in a way that you didn't intend.

MoneyHub Founder Christopher Walsh comments:
"Over the years, I've seen retirees who gave away significant portions of their savings, only to regret it later when unexpected costs arose, leaving them feeling trapped and stressed. Cash is always king, but if you deplete most of your liquid assets and leave yourself with your home, you compromise your long-term comfort and security. If you suddenly need to move into a retirement home, you must wait to sell your home, which may not be practical.

If you're keen to help your family, you may want to consider offering smaller, planned gifts that won't compromise your future. Supporting others when it destabilises your financial foundation is a high-risk activity you may not be able to recover from if you exhaust your funds.

Lastly, giving younger family members a large sum of money at a young age can unexpectedly alter their priorities and life choices. I recall a remarkable story from a British newspaper about a retired couple who distributed $500,000 among their three sons, only to witness unintended consequences. One son quit his job and moved to India for what appears to be forever, another splurged on an expensive car for his girlfriend, and the third purchased a home overseas and relocated, distancing himself from the family. When you gift significant funds, you risk not only shifting their life paths but also potentially altering the dynamics of your relationships in ways you might not anticipate".

Falling for Promises of 'Guaranteed' Investment Returns and Bank-Beating' Deposits'

Our view is simple: If an investment opportunity prominently uses the word "guarantee," approach it cautiously. The more often the term "guarantee" is mentioned, or the bigger the promises of risk-free returns, the more likely the investment is to be high-risk - or worse, a scam.

There are further red flags - if you're being bombarded with unsolicited calls or high-pressure tactics encouraging you to invest, disengage immediately. In most cases, these aren't legitimate New Zealand-based firms. If you suspect the operation to be a scam, report it to the FMA so they can publish the name of the 'investment' on their website and raise media awareness.

MoneyHub Founder Christopher Walsh comments:
"Investments promising high, guaranteed returns - like so-called' term deposits' that don't meet the usual definition or unregulated' investment funds' often lack the protections retirees assume are in place. In recent years, New Zealand has seen investment fund promoters flying in (rented) private jets and helicopters to suggest wealth, only to find that the investment suddenly stops paying.

Over the years, I've seen cases where people lost their entire retirement/KiwiSaver savings to scams or risky schemes disguised as safe bets that rely on trust, celebrity endorsements, illusions of wealth and positive (paid) media coverage. A legitimate investment doesn't rely on aggressive marketing or outlandish promises. Always ask yourself: if the investment is so great, why isn't there any media or reviews on it, and why does it need such a hard sell? Please exercise extreme caution".

The Risks and Realities of Unlisted Property Syndicates: A Cautionary Tale

Unlisted property syndicates are often marketed as 'secure investments', promising steady monthly cash returns comparable to term deposits. However, the reality for many investors in the past has been far less reassuring, with significant losses, illiquidity, and the burden of ongoing management fees even when distributions have stopped.

Unlisted property syndicates are frequently sold on the allure of attractive pre-tax cash returns in the first year. For example, in 2020, the Oyster Group marketed an investment in a major Wellington office building with a pre-tax cash return of 6% in its first year, as outlined in this interest.co.nz article. Fast forward to March 2024, and as outlined in this NZ Herald article, the picture is starkly different: distributions to investors have been suspended to zero, and the fund reported a staggering $22.5 million loss. This shift highlights how initial returns can mask deeper vulnerabilities in the investment structure.

The Nido Syndicate offers a cautionary tale of financial devastation. Promising regular monthly returns with Nido set to be 'New Zealand's IKEA', the syndicate collapsed, wiping out all investor funds. Some retirees reportedly invested over $1 million, only to face complete losses per a 2023 NZ Herald article. The Nido case underscores the immense risks and dire consequences for investors who believed in the marketing claims.

Our View:

The fee structure is a critical issue with unlisted property syndicates. Even when distributions to investors are reduced to zero, syndicate managers often collect their management fees, prioritising their own income over investor returns. Stories from various syndicates paint a grim picture of an industry that appears to profit regardless of the performance of the underlying assets.
Overall, these investments are inherently illiquid, meaning investors cannot easily access their money when they need it. Adding to the risk, some syndicates have even called for additional capital from investors to cover losses—a shocking demand when the initial investment is already underperforming or has failed.
The unlisted property syndicate industry has faced widespread criticism for marketing itself as a reliable, cash-like monthly return source. These are high-risk, speculative investments where losses can be catastrophic. Investors - especially retirees - need extreme caution, thoroughly understand the risks, and avoid being misled by marketing promises.
The risks need to be considered - your money will be locked up with no easy way to exit, the returns promised may not be realised (and losses could be incurred), managers continue to charge their fees, and "cash-like" returns are often far from guaranteed. Be very careful.

Lending to Friends or Family for Their "Business Idea" or Property Purchase

While this isn't as common, you may be approached by a friend or family member to invest in a business idea, property venture or something similar.

This may seem like a kind gesture to "get you involved and make some money", but it's one of the riskiest moves a retiree can make with their KiwiSaver funds. New businesses too often fail, property development may not deliver the expected returns, and repayment promises often go unfulfilled. Worse still, these arrangements are rarely formalised with contracts or legal protections, leaving you financially and emotionally exposed.

The harsh reality is that mixing family and finances will almost ruin relationships if things don't go as planned. Whether it's a well-meaning sibling starting a café or an adult child looking for help with a first-home deposit, the lack of repayment can lead to tension, guilt, or even estrangement. Life is too short to feel this hurt and regret.

MoneyHub Founder Christopher Walsh comments:
"While lending money to loved ones may feel rewarding in the moment, the risks are significant. I've seen too many cases where retirees lent more than they could afford to lose, only to never see it repaid. The financial strain this causes is bad enough, but the emotional toll on relationships is often far worse.

If you want to help, consider making a smaller gift with no expectation of repayment. If you're set on lending money, make sure to formalise the agreement with a clear repayment plan and legal documentation. Your retirement security should always come first".

Buying into Lifestyle Retirement Villages as an "Investment" - You Will Almost Certainly Not Make Money From the Transaction

Retirement villages are often marketed as lifestyle-enhancing options for retirees, offering community, comfortable facilities and convenience. However, many New Zealanders mistakenly view these buy-ins as investments, expecting them to behave like traditional property ownership. The reality is very different: deferred management fees (DMFs), limited resale rights, and the absence of capital gains can significantly erode your equity over time.

Unlike owning a home outright, buying into a retirement village often means you'll never see a return on your initial investment. If your circumstances change, such as needing to move for health reasons or family support, exiting the village can become costly and time-consuming. Our guide to retirement villages and rest homes has more details.

MoneyHub Founder Christopher Walsh comments:
"Retirement villages can offer a great lifestyle for many retirees, but they are not investments. I've seen people enter these agreements under the impression that their unit will appreciate, only to be blindsided by hefty fees and strict resale terms. The fine print is critical - what seems like a straightforward buy-in can quickly become a financial win for the manager/owner and a loss to you.

If you're considering a retirement village, focus on what it offers for your lifestyle, not its potential as an investment. Make sure you fully understand the terms, including all fees and restrictions, before committing to any purchase".

Our Conclusion and What to Consider Before Withdrawing Any KiwiSaver Money

There's no single 'correct' way to use your KiwiSaver funds at 65. Your circumstances - whether you own your home, your health, your family situation - should dictate how you approach withdrawals and reinvestments.

Unfortunately, some New Zealand retirees often feel 'poor' in retirement and get promoted 'investments' that are not what they seem. Scams and high-risk investments advertise themselves and take funds from trusting retirees who don't do the checks or aren't paranoid enough. The finance company collapses during the 2000s is one example of too much risk for a small return operating in a legitimate industry. In contrast, the fake term deposit scams that surfaced in 2022 are criminal activity. It's not always greedy or gullible retirees who fall victim to bad investments and scams - the players are getting more sophisticated.

Conversely, some retirees withdraw their KiwiSaver funds, are far too conservative, and underestimate their long-term needs. They park the money in a bank account, earning minimal interest, because they fear making a mistake and 'losing it all'. While caution is good, doing nothing can still be a mistake if inflation erodes the real value of your savings. A balanced approach - keeping some funds liquid for emergencies while investing the rest conservatively - is a popular way to protect your wealth and give you peace of mind.

Tailored financial advice is critical as anyone approaches 65; we believe it's worth considering professional guidance to avoid costly mistakes. While there are a lot of resources on MoneyHub, we appreciate it's useful to talk to someone. Our guide to financial advisers are a useful starting point about what to know and the questions to ask.

Know This: Owning a mortgage-free home at 65 is a strong way to start your retirement, but homeownership isn't a substitute for liquid assets. Your house can't pay for supermarket costs, waitlist-avoiding medical treatment, dental work and new cars. That's why KiwiSaver (and other non-housing investments) remain essential - it's your liquid safety net, even if you're already on solid ground with housing.

The key to a stress-free retirement is to draw down appropriate funds while keeping your housing and lifestyle costs in control. It's essential to treat your KiwiSaver like an invaluable resource and make every decision with care.

Key Consideration: Planning for later-in-life needs

It’s essential to anticipate the significant cost increases associated with care home requirements for yourself or a spouse in later life.
Planning for a private facility ensures access to quality care, avoiding the challenges and discomfort that can arise from relying solely on limited public options.
However, there are good alternatives worth considering beyond private and public care. For example, some New Zealanders have arranged full-time in-home care for loved ones at a fraction of the cost of a care home. Even in cases of prolonged illnesses such as dementia, hospice services can be arranged at home during the final stages. These options can provide compassionate and cost-effective care while allowing individuals to remain in the comfort of their own homes.

Frequently Asked Questions

This guide and FAQs section do not constitute financial advice; they aim to provide clear, practical information to help you make informed decisions.
The FAQs below explore key topics like leaving your funds in KiwiSaver, avoiding risky investments, and planning for long-term financial security. However, the information is general and journalistic and not financial advice.

Why is liquidity important for retirees?

Liquidity refers to how easily you can access your money. For retirees, liquidity is crucial because unexpected expenses like healthcare, home repairs, or emergencies can arise at any time.

Investments that are easy to sell or withdraw - like KiwiSaver, managed funds, or term deposits - offer the flexibility retirees need. Illiquid assets, such as property or long-term investment schemes, can tie up your money and make it difficult to access funds when needed.

What happens if I leave my KiwiSaver funds where they are after turning 65?

If you leave your funds in KiwiSaver, they remain invested and accessible. You can switch between funds to align with your retirement needs, such as moving to a conservative fund for lower risk or staying in a balanced fund for moderate growth. Many retirees do something like this.

Leaving your money in KiwiSaver ensures it remains liquid, meaning you can withdraw funds whenever you need them without penalties or delays. This flexibility is one of KiwiSaver's greatest benefits for retirees.

Do I need to withdraw all my KiwiSaver money at 65?

No, there's no requirement to withdraw all your funds once you turn 65. You can keep your money in KiwiSaver, making withdrawals only when needed. This approach lets your funds continue growing while maintaining easy access to your savings. Many retirees choose to make small, regular withdrawals rather than withdrawing a lump sum, ensuring their savings last longer.

What are the popular options for using KiwiSaver funds after 65?

What's right for you depends on your financial goals and needs. You can:

Leave the funds in KiwiSaver and withdraw as required
Adjust your KiwiSaver fund to suit your risk tolerance (e.g., switch to a conservative fund)
Use a portion for immediate needs while keeping the rest invested

Are all investments risky, or are there safer options?

Not all investments are risky, but every investment carries some level of risk. 'Safer' options for retirees typically include:

Conservative KiwiSaver funds managed by top-performing investment managers
Term deposits with flexible withdrawal terms offered by registered banks
Long-standing and trusted managed funds tailored for retirees

These options focus on preserving capital and ensuring liquidity while offering modest returns and avoiding high-risk or speculative investments.

How can I avoid scams targeting retirees?

To avoid scams, we suggest the following:

Be wary of unsolicited offers, especially those promising "guaranteed" returns.
Avoid sharing personal or financial information online.
Research investment opportunities thoroughly and ensure New Zealand authorities regulate them.
Report any suspicious schemes to the Financial Markets Authority (FMA).
Legitimate investments don't rely on high-pressure sales tactics or flashy promises.

Is it okay to use my KiwiSaver funds to help family members?

While helping family is a generous gesture, ensuring you won't compromise your financial security is essential. Large gifts or loans can leave you vulnerable to unexpected costs in the future. If you decide to help, consider giving smaller, planned amounts that won't impact your long-term financial well-being. Always prioritise your retirement needs before offering financial support to others.

What are the risks of withdrawing all my KiwiSaver funds at once?

Withdrawing all your KiwiSaver funds in a lump sum can lead to:

Overspending or mismanaging the money.
Losing the benefits of tax-free growth within KiwiSaver.
Investing in unsuitable or high-risk options that might not align with your retirement needs.
A gradual withdrawal strategy helps preserve your savings and ensures they last throughout your retirement.

Do I need a financial adviser to manage my KiwiSaver after 65?

While not mandatory, working with a financial adviser can be highly beneficial. An adviser can help:

Assess your financial goals and risks.
Develop a tailored strategy for withdrawals and investments.
Identify and avoid unsuitable investment options.
Their expertise can provide peace of mind and help you maximise your KiwiSaver funds during retirement.

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