How to use KiwiSaver for retirementHow to use KiwiSaver for retirement

KiwiSaver is built primarily for retirement, although it can also be withdrawn early for a first home, significant financial hardship, serious illness, life-shortening congenital condition or permanent emigration. For most members, the retirement withdrawal at age 65 is the purpose of the scheme and it's worth planning for well before your 65th birthday arrives. This guide covers how to use KiwiSaver for retirement, including what you can do with your balance once you turn 65, how contributions and the government contribution change and how much you're likely to need. We’ll also discuss how long a Sharesies KiwiSaver Scheme withdrawal takes, whether it's a regular withdrawal from your Wallet or a formal KiwiSaver retirement withdrawal.

What Can You Use KiwiSaver For?

You can withdraw your KiwiSaver for retirement at age 65, buying a first home, to help you cope with significant financial hardship, serious illness, life-shortening congenital condition or if you’re permanently emigrating from New Zealand. 

Retirement is the scheme's core purpose and the most common reason people access their balance.

If you're planning a first-home withdrawal rather than a retirement one, our guide to using KiwiSaver for your first home covers that process specifically. 

How Long Does a Sharesies KiwiSaver Scheme Withdrawal Take?

A formal KiwiSaver retirement withdrawal is its own distinct process, with its own timeline. If you're 65 or over, a first retirement withdrawal typically takes 10–15 business days to process, while subsequent withdrawals are usually faster at 5–7 business days. To complete one, you'll need your IRD number, an NZ bank statement, and a statutory declaration witnessed by a JP or lawyer. That's because a retirement withdrawal is a formal process governed by your KiwiSaver scheme's trust deed and the KiwiSaver Act. 

Your Withdrawal Options at 65

From age 65, you can withdraw your KiwiSaver balance as a lump sum, set up regular scheduled withdrawals (if your provider has this option) or take partial withdrawals whenever it suits you. You can also leave your money fully invested if you don't need it straight away. There's no rush to decide. If you're already happy with your provider's fees and service, leaving your balance invested can mean less admin than managing the money yourself. Plus it keeps working for you rather than sitting in a bank account losing value to inflation.

Contributions and the Government Contribution After 65

Once you turn 65, you're no longer eligible for the government contribution, but you can keep contributing to KiwiSaver for as long as you like. Before 65, the government matches 25 cents for every dollar you contribute, up to $260.72 a year, but only if your taxable income is $180,000 or less. Contribution rates are rising, with minimum employee and employer rates rising from 3.5% to 4% from 1 April 2028. Your employer isn't required to keep contributing once you turn 65, though many choose to if you keep contributing yourself. To stop your own contributions, give your employer a non-deduction notice (KS51). You can always restart later with a KiwiSaver deduction form (KS2).

How Much Do You Actually Need in Retirement?

How much KiwiSaver you need for retirement depends on your lifestyle expectations, but Massey University's Fin-Ed Centre publishes the most current benchmark for actual retiree spending in New Zealand. For the year to June 2025, a two-person 'no frills' household in a metropolitan area spent $937.38 a week, while a 'choices' household (a more comfortable lifestyle) spent $1,780.32 a week, according to the Massey University Retirement Expenditure Guidelines. Both figures sit well above NZ Super, meaning most retirees are drawing on savings, including KiwiSaver, to cover the gap. To hit the 'no frills' benchmark in a metro area, the research estimates savings of around $120,000 on top of NZ Super, whereas the 'choices' benchmark needs closer to $1,033,000. Check your own NZ Super eligibility and rates directly, since these benchmarks are a starting point, not a personal target. Your own housing situation, health, and other savings all shift the number that actually matters for you.

Building a KiwiSaver Strategy for Retirement

A KiwiSaver retirement strategy comes down to matching your investment timeframe and withdrawal goal to your provider and fund choice. The further you are from 65, the more time you have to ride out market ups and downs, which is generally when a higher-risk, higher-growth fund makes sense. See what risk actually means for your KiwiSaver investments  for a fuller explanation. As retirement gets closer, two things are worth weighing up: inflation and sequencing risk. Holding a lump sum in a bank account loses value to inflation over time, but staying fully invested means a market downturn close to your withdrawal date could reduce what's left to live off. Many people manage this by making regular partial withdrawals instead of one lump sum, and by shifting to a lower-risk fund in the lead-up to when you will start withdrawing your KiwiSaver balance. If you haven't settled on a provider yet, our guide to choosing a KiwiSaver provider covers the criteria that matter, and how to choose your KiwiSaver investments walks through fund and risk selection in more depth.

Making a Retirement Withdrawal from the Sharesies KiwiSaver Scheme

To withdraw from the Sharesies KiwiSaver Scheme at 65, email us to receive a retirement withdrawal form. For your first withdrawal (whether it's your whole balance or a partial one)  you'll need your IRD number, an NZ bank account with a statement or internet banking screenshot from the last six months and a Justice of the Peace or registered lawyer to witness your statutory declaration. Once you've made your first withdrawal, any future partial withdrawals only need your IRD number and a signature on a follow-up form. No repeat statutory declaration is required, or if you're changing your bank account, you'll need an updated bank statement. As long as everything's in order, expect 10-15 business days for the money to land in your account. You also have the option to have the withdrawal paid directly to your Sharesies wallet. If you withdraw part of your balance, your account keeps running as normal, with contributions continuing to invest according to your plan, and your performance updates continue. Once your entire balance has been withdrawn, your Sharesies KiwiSaver Scheme account closes automatically.

Frequently Asked Questions

What can you use KiwiSaver for?

KiwiSaver can be withdrawn for retirement at 65, a first-home purchase, significant financial hardship, serious illness, life-shortening congenital condition or permanent emigration from New Zealand. Retirement is the scheme's primary purpose.

How long does a Sharesies KiwiSaver Scheme  withdrawal take?

A formal Sharesies KiwiSaver Scheme  retirement withdrawal is a  longer process (typically 10-15 business days) because it requires identity and bank verification documents rather than a simple transfer.

How do I withdraw my KiwiSaver at 65?

Email us to request a retirement withdrawal form. You'll need your IRD number, an NZ bank statement and a Justice of the Peace or lawyer to witness your statutory declaration, then allow 10-15 business days for the funds to arrive.

Do I still get the government contribution after 65?

No. The government contribution stops once you turn 65, even if you keep contributing to KiwiSaver yourself. Before 65, it's available to anyone earning $180,000 or less a year, matched at 25 cents per dollar contributed, up to $260.72 annually.

What happens to my account after I withdraw my whole KiwiSaver balance?

Your Sharesies KiwiSaver account closes automatically once your entire balance has been withdrawn. If you only withdraw part of it, your account keeps running as normal, with contributions continuing to invest according to your existing plan.

Planning Ahead for Your KiwiSaver Retirement

When it comes to how to use your KiwiSaver for retirement, you need to know your withdrawal options at 65, understand how contributions change, benchmark your goal against real retiree spending and build a strategy that shifts risk down as 65 gets closer. Whether you're decades out or approaching retirement now, the earlier you plan, the more choices you'll have. If you want more control over how your KiwiSaver balance is invested along the way, the Sharesies KiwiSaver Scheme lets you choose a base fund and add your own picks on top. Make a plan, with no obligation, to see what that could look like for your own retirement timeline.