A number of clients have asked me about accessing their KiwiSaver funds when they retire. I usually review the choices they have with the money. These are:-

  • You can retain your savings in the your KiwiSaver Scheme.
  • You can access all of your savings (including Government and Employer contributions) at any time.
  • You can arrange to make withdrawals from your account, either on a regular basis or to meet one-off needs.
  • You can continue making contributions to your account.
  • You can choose a combination of the above options.
    Most people are interested in getting all their money out and spending it in any number of ways.I often suggest that they consider using their KiwiSaver Fund as a source of income. That is take regular withdrawals.
    It is best to use a real example to show how this works.


Jim (Not his real name) is retiring soon. He has approximately $50,000 in his KiwiSaver account.
The KiwiSaver fund he is in has a long term return of 8%pa. (after fees but before tax).
Now I am going to make a few assumptions about Jim that I can use to estimate the income payments from his KiwiSaver account.

a)  When Jim retires his tax rate will be 10.5% so for the purposes of estimation I will assume that the after tax earning rate on Jim’s KiwiSaver money is 6.96%. Payments from a KiwiSaver Scheme are Tax paid.
b)  Jim is 65yo. He wants the income to be paid twice a year until he is 85yo. This is 40 payments.
c)  His KiwiSaver fund will maintain the long term before tax earning rate of 8%pa
 Then for Jim his actual income then looks like the following:
-      Every six months for 20 years withdraw $2355.00
-      Total amount withdrawn after 20 years = $93,994.05
Not bad for a starting figure of  $50,000.
With all estimations of this nature it is indicative only. I explained to Jim that he may not live until he is 85. I also explained that there is the possibility of a major market pull back, and the actual earnings rate will be affected by this.
If you joined KiwiSaver through me and would like me to do a similar  retirement income estimate on your account  please contact me.