Your 60s are the critical final stretch before KiwiSaver becomes fully accessible at 65. The decisions you make in this decade — fund type, contribution rate, withdrawal strategy — will directly shape your retirement income. Here’s how to make the most of it.
Where Should You Be at 60?
If you’ve been contributing consistently since your 20s or 30s, your KiwiSaver should be one of your most significant assets by your 60s. The average KiwiSaver balance for the 55–64 age group is $90,000–$130,000 — but this average masks a wide spread.
A rough target: To have a meaningful supplement to NZ Super in retirement (~$20,000–$30,000 per year from KiwiSaver), you need approximately $250,000–$400,000 by age 65, depending on your drawdown rate and how long you plan to draw from it.
If you’re behind this target at 60, there is still time to close the gap — but it requires deliberate action.
Fund Type in Your 60s
This is the most consequential decision for members in their 60s: when to reduce investment risk, and by how much.
The sequence-of-returns risk
A major market downturn in the 2–3 years before or after you start drawing down can permanently damage your retirement balance. This is called sequence-of-returns risk — the timing of bad returns matters more than the long-run average when you’re making withdrawals.
General guidance by age:
| Age | Suggested fund type |
|---|---|
| 60–62 | Growth or balanced — still time to recover |
| 62–64 | Balanced — reduce risk gradually |
| 64–65 | Conservative or balanced — protect against a crash in final year |
| 65+ (drawing down) | Depends on drawdown rate and other income |
This isn’t a hard rule — if you have other assets (rental property, term deposits, NZ Super) that cover living expenses, you can afford to leave KiwiSaver in a growth fund for longer, maximising long-run returns.
See how to change your KiwiSaver fund type for the process.
A staged de-risking approach
Many advisers recommend moving gradually rather than switching all at once:
- At 60: move from growth to balanced
- At 63: move from balanced to conservative
- At 65: assess based on drawdown plan
This avoids the risk of making a large switch on the wrong day (just before a recovery).
Contribution Strategy in Your 60s
Keep contributing — the MTC still applies
Until you reach the qualifying KiwiSaver age (65), you remain eligible for the Member Tax Credit ($521.43/year). To receive the full amount, contribute at least $1,042.86 in the KiwiSaver year (1 July – 30 June).
Even at 64, the MTC is a guaranteed 50% return on $1,042.86. Don’t stop contributing early.
Consider increasing your contribution rate
If your balance is below target and you’re still working, increasing from 3% to 6% or 8% in your final working years makes a significant difference. You still have 5 years of employer contributions — use them.
See KiwiSaver contribution rates.
Lump sum top-ups
If you have spare cash — bonus, sale of an asset, inheritance — a lump sum contribution in your 60s still compounds meaningfully for 5 years. Even after 65, a balance that stays invested at 5–6% continues growing through your drawdown phase.
See KiwiSaver lump sum contributions.
What Happens at 65?
At 65 (the qualifying KiwiSaver age), your KiwiSaver becomes accessible. Key points:
- You can withdraw all or part of your balance — there is no requirement to take it all at once
- Your scheme doesn’t close automatically — you must contact your provider to initiate a withdrawal
- Employer contributions stop — you’re no longer entitled to compulsory employer KiwiSaver contributions after 65 (some employers continue voluntarily)
- MTC stops — you’re no longer eligible for the Member Tax Credit after reaching qualifying age
See the full guide: KiwiSaver at 65 — your options.
Planning Your Drawdown
The most important pre-retirement decision is how you’ll draw down your KiwiSaver.
Option 1: Regular income drawdown
Set up a regular payment from your KiwiSaver to your bank account — weekly, fortnightly, or monthly. This supplements NZ Super to cover your living expenses. Most providers support this; contact your provider to set it up.
Option 2: Ad hoc withdrawals
Withdraw when you need to — useful if NZ Super covers most expenses and KiwiSaver is a buffer.
Option 3: Leave it invested
If you don’t need the money immediately (perhaps you’re still working part-time, or have rental income), leaving KiwiSaver invested at 65 continues tax-advantaged growth. There’s no requirement to withdraw at 65.
How long will your KiwiSaver last?
Quick reference — at 5% annual return, how long will a balance last with a given annual withdrawal?
| Starting balance | $20,000/yr withdrawal | $30,000/yr withdrawal |
|---|---|---|
| $200,000 | ~14 years | ~9 years |
| $300,000 | ~23 years | ~14 years |
| $400,000 | 35+ years | ~19 years |
Illustrative only; based on 5% return and fixed annual withdrawal. Real-world outcomes vary.
NZ Super provides the baseline — KiwiSaver fills the gap.
KiwiSaver and NZ Super Together
NZ Super is currently ~$530/week (single, living alone) or ~$814/week (couple, both qualifying), paid from age 65. Most people need more than this for a comfortable retirement.
See KiwiSaver and NZ Super — how they work together for a full breakdown of combining both income sources.
Checklist for Your 60s
- Review your KiwiSaver balance vs retirement target
- Review your fund type — is it appropriate for your time horizon?
- Ensure you’re contributing enough to get the full MTC each year
- Consider increasing your contribution rate if behind target
- Review your KiwiSaver provider’s fees — switching to a low-cost provider still matters in your 60s
- Plan your drawdown strategy before you turn 65
- Ensure your will is up to date — KiwiSaver forms part of your estate on death