Retiring in New Zealand 2026 — Financial Checklist for Age 65

Retirement in New Zealand requires deliberate financial preparation. NZ Super doesn’t start automatically — you must apply. KiwiSaver becomes accessible at 65 but requires decisions about how to draw it down. And costs like health insurance and maintenance increase sharply in retirement.

NZ Super — Applying for the Pension

NZ Super is not automatic

Many New Zealanders don’t realise that NZ Super does not start automatically at age 65. You must apply. If you apply late, you may not receive backdated payments.

Apply via: MyMSD or by calling Work and Income on 0800 552 002.

Apply 2–3 months before your 65th birthday — processing takes time.

NZ Super rates (2026)

Rates are adjusted annually on 1 April. Check workandincome.govt.nz for current rates.

Eligibility requirements

• Age: 65
• Residency: NZ citizen or permanent resident
• Presence: Must have been ordinarily resident and present in NZ for at least 10 years since age 20, with 5 years of that after age 50

If you’ve lived overseas, your eligibility may be affected by international social security agreements NZ has with some countries (UK, Australia, etc.).

Tax on NZ Super

NZ Super is taxable income. You need to choose a tax code — the default is M (primary income). If you have other income sources in retirement (KiwiSaver drawdowns, investment income, rental income), you may need to file an IR3 return to ensure the right amount of tax is paid.

KiwiSaver at Age 65 — Your Options

Your KiwiSaver becomes accessible at age 65 (or when you’ve been a member for 5 years, whichever is later). You have several options.

Option 1: Lump sum withdrawal

You can withdraw all your KiwiSaver as a lump sum at 65. This gives you full control but also full responsibility for managing a large sum.

Considerations:

• Large lump sum may trigger higher tax rates in that year on investment returns inside the fund
• Investment management becomes your responsibility
• Lump sums are tempting to spend quickly
• No tax on the withdrawal itself (PIR tax has been paid throughout your investment)

Option 2: Regular drawdown (scheduled withdrawals)

Many KiwiSaver providers allow you to set up regular withdrawal payments (weekly, fortnightly, monthly). You leave the bulk invested and draw down what you need.

This is often the best option for most retirees:

• Funds remain invested and continue growing
• Regular income stream supplements NZ Super
• Provider manages the investment
• You can adjust amounts as needed

Option 3: Leave it invested

You can continue to leave your KiwiSaver invested after 65 and withdraw only as needed. There is no mandatory withdrawal age.

Note: Once you turn 65, employer contributions stop (unless your employer chooses to continue voluntarily). Your own contributions also no longer attract the member tax credit.

Which fund type for retirement?

The conventional advice is to shift to a more conservative fund type as you approach and enter retirement — less exposure to shares, more to income assets (bonds, cash). However, this is personal and depends on your other income sources and spending needs.

Use Sorted’s KiwiSaver fund finder to assess fund options.

Income Sources in Retirement — The Full Picture

Most New Zealanders in retirement have multiple income sources:

The retirement income gap

NZ Super alone is not sufficient for most people to maintain their pre-retirement standard of living. The Commission for Financial Capability (CFFC) estimated in 2024 that a comfortable retirement for a couple requires approximately $1,100–$1,400/week — significantly above the NZ Super couple rate.

Use Sorted’s Retirement Planner to calculate your specific income gap.

Annual Leave Payout

When you retire from employment, your employer must pay out all accrued annual leave. This is calculated on your ordinary weekly pay or average weekly earnings, whichever is greater.

Check your accrued leave balance well before your last day. For many people who have worked for the same employer for years, this is a significant sum.

Health Insurance — A Critical Review Point

Health insurance premiums rise sharply after age 65. This is one of the most important financial decisions in the lead-up to retirement.

The core question

Will you rely on the public health system, or do you want private health insurance cover?

Public system: Free GP visits (for SuperGold Card holders, some GPs offer free or discounted visits), public hospital treatment. Waiting lists exist for non-urgent procedures.

Private insurance: Faster access to specialists and surgery, wider choice of specialists. But premiums at 65+ can be $300–$600+/month per person.

What to do

• Review your current health insurance — check what your premium will be at 65 and beyond
• Decide before you retire, not after. Some insurers allow you to lock in coverage at a lower rate while still employed
• Check the premium escalation — health insurance premiums rise 10–15% per year for older policyholders at some insurers
• Consider a high excess policy — accepting a higher excess (e.g., $2,000–$5,000) can significantly reduce premiums while still protecting against large costs

Estate Planning — Update for Retirement Phase

Retirement is a critical time to update estate planning documents.

Will

• Is your will current? Does it reflect your current assets (including any KiwiSaver balance)?
• Does it name an executor who is still alive and capable?
• Have your circumstances changed (new grandchildren, family estrangements, etc.)?

Enduring Power of Attorney (EPA)

An EPA allows a trusted person to manage your affairs if you become incapacitated. In NZ, there are two types:

• Property EPA: Manages financial affairs
• Personal care and welfare EPA: Makes personal/medical decisions

You should have both. An EPA must be set up while you have mental capacity — you cannot set one up after you’ve lost capacity. Setting it up in your 60s, while healthy, is far easier and less expensive than in a crisis.

A lawyer can prepare both documents — cost: approximately $400–$800.

KiwiSaver nominated beneficiary

Update your nominated beneficiary on your KiwiSaver provider’s portal. Your KiwiSaver balance does not pass through your will — it goes directly to your nominee.

Shifting Your Investment Risk Profile

As you approach and enter retirement, the conventional approach is to reduce exposure to volatile assets (shares) and increase allocation to more stable income assets (bonds, cash, term deposits).

The reason: if the market drops 30% the year before you retire, a conservative investor loses a smaller portion of a smaller stock allocation, while an aggressive investor may see their retirement savings drop significantly right when they need to use them.

Practical steps:

• Review your KiwiSaver fund type — are you still in a growth fund? Consider shifting to balanced or conservative
• Review any other investments (managed funds, ETFs, NZX shares)
• Consider keeping 2–3 years of living expenses in lower-risk, accessible savings (term deposits or a high-interest savings account) as a buffer

Budgeting in Retirement — What Changes

Retirement spending is often not what pre-retirees expect.

The “go-go, slow-go, no-go” model describes how retirement spending typically peaks in the early active years (travel, hobbies), plateaus in the middle years, and eventually shifts heavily toward healthcare in later years.

Financial Checklist — Retiring at 65

2–3 years before retirement

• Use Sorted’s Retirement Planner to estimate income gap
• Review KiwiSaver fund type and consider shifting to more conservative
• Review health insurance — understand your future premiums
• Prepare or update Enduring Powers of Attorney (while still active and healthy)
• Review will

3 months before turning 65

• Apply for NZ Super via MyMSD — do not wait until you turn 65
• Contact your KiwiSaver provider about drawdown options
• Confirm accrued leave balance with your employer
• Decide on drawdown strategy (lump sum / regular drawdown / leave invested)
• Update KiwiSaver nominated beneficiary

On retirement date

• Confirm NZ Super has started (check your bank account)
• Begin KiwiSaver drawdown if desired
• Receive accrued leave payout in final pay
• Notify IRD of retirement (if income changes affect your tax situation)

Within 3 months of retiring

• Update your budget to reflect retirement income
• Review and update will with updated asset picture
• Set up any automatic payments for regular drawdown from KiwiSaver
• Consider a session with a financial adviser to review the full picture

Next Steps

1. Apply for NZ Super 2–3 months before turning 65 — the application takes time
2. Contact your KiwiSaver provider to understand your drawdown options before you turn 65
3. Review your health insurance now, while premiums are lower — don’t leave this until 65
4. Set up Enduring Powers of Attorney while you have capacity — it’s cheap and takes 30 minutes with a lawyer; not having it is a much bigger problem

See also: Life Events hub · KiwiSaver guides · Investing guides · Personal Finance hub