Turning 65 doesn’t mean your KiwiSaver story ends — but the rules change significantly. You can still contribute, stay invested, and draw down on your own terms. Here’s exactly what happens to KiwiSaver after 65.
What Is the Qualifying KiwiSaver Age?
The Qualifying KiwiSaver Age is currently 65 — the age at which you can access your full KiwiSaver balance without restriction. This aligns with the NZ Superannuation eligibility age.
You don’t have to withdraw at 65. There is no deadline. Your balance stays invested until you instruct your provider otherwise.
Can You Keep Contributing After 65?
Yes — there is no upper age limit for making KiwiSaver contributions. You can continue contributing to your KiwiSaver scheme indefinitely after 65.
However, the compulsory framework changes significantly:
| Feature | Before 65 | After 65 |
|---|---|---|
| Employee contributions (payroll) | Compulsory unless suspended | Voluntary — no longer required |
| Employer contributions | Compulsory (minimum 3%) | Not required — employer discretion |
| Member Tax Credit | Eligible | Not eligible |
| Withdrawal access | Restricted (specific events) | Unrestricted |
Employer Contributions After 65
Employers are not required to make KiwiSaver contributions for employees aged 65 and over. The KiwiSaver Act’s compulsory employer contribution obligation only applies to employees under the qualifying age.
Some employers continue contributing voluntarily for older employees — this may be part of their employment policy or individually negotiated. Check your employment agreement or ask HR.
If employer contributions are important to your decision to keep working, clarify this with your employer before assuming they’ll continue.
The Member Tax Credit After 65
Once you reach the qualifying KiwiSaver age (65), you are no longer eligible for the Member Tax Credit. No MTC will be paid regardless of how much you contribute.
This removes one of KiwiSaver’s key financial incentives for continuing to contribute. Post-65, the only reasons to keep contributing are:
- Investment growth — contributions remain invested and continue generating PIE-taxed returns
- Discipline — systematic saving if you’re still earning income and not drawing down
- Estate building — growing the balance to pass on
For most retirees no longer in paid employment, there’s limited reason to make new contributions after 65 — the focus shifts to managing the drawdown.
Should You Stay Invested After 65?
Yes, in most cases — at least partially. Your existing balance continues to benefit from:
- PIE tax treatment — returns taxed at your PIR (which may be lower in retirement — 17.5% if income is $14,001–$48,000)
- Investment growth — even at 67 or 70, you may have a 20+ year investment horizon
- Structured drawdown — regular withdrawal facilities through your provider
The question isn’t whether to stay invested, but what fund type to be in and at what drawdown rate.
For a 65-year-old in good health, expected to live to 85–90, keeping a portion in a balanced fund (with conservative allocation for near-term withdrawal needs) is sensible. See KiwiSaver drawdown strategy.
What Happens If You Join KiwiSaver After 65?
You can still join KiwiSaver after 65, but:
- You won’t be auto-enrolled (auto-enrolment only applies to employees under the qualifying age)
- You must enrol voluntarily
- You won’t receive employer contributions or MTC
- Your balance is immediately accessible — no lock-in applies post-65
For most people over 65, joining KiwiSaver for the first time provides little benefit — particularly since MTC and employer contributions are unavailable. A non-KiwiSaver PIE fund (same tax treatment, no lock-in) is generally preferable for new investors post-65.
PIR Rate in Retirement
After 65, your income typically drops — NZ Super (~$27,560/year single) is often your primary income. This may move you to a lower PIR:
| Annual income (NZ Super + other) | PIR |
|---|---|
| Under $14,000 | 10.5% |
| $14,001–$48,000 | 17.5% |
| Over $48,000 | 28% |
For a single retiree receiving only NZ Super (~$27,560), the correct PIR is 17.5% — lower than the 28% many paid during their working years. Update your PIR with your provider when you retire, or you’ll overpay tax on ongoing KiwiSaver returns (overpaid PIR is not refundable).
See how to update your KiwiSaver PIR rate.
Opting Out of Payroll Deductions After 65
If you’re still working after 65 and don’t want to continue KiwiSaver employee deductions from your pay, you can opt out of payroll contributions by:
- Contacting your employer directly — since employer contributions are no longer compulsory, payroll deductions for KiwiSaver become optional on both sides
- Applying for a savings suspension if payroll deductions are being made
Unlike the under-65 savings suspension (which requires 12 months of membership and has minimum/maximum terms), the rules are more flexible post-65 since the compulsory framework no longer applies.
Summary — Key Changes at 65
| Change | Detail |
|---|---|
| Full access to balance | Yes — withdraw any amount, any time |
| Employer contributions | No longer compulsory |
| Employee payroll deductions | No longer compulsory |
| Member Tax Credit | No longer available |
| Ongoing investment | Yes — balance continues to grow |
| PIR | Review and update — may be lower in retirement |