Retirement in New Zealand is more financially complex than many people realise — even with KiwiSaver and NZ Super in place. The decisions you make in the 12–24 months before you retire significantly affect how much income you’ll have and how long your savings will last.
The key pre-retirement tasks are: confirm your KiwiSaver withdrawal plan (accessible at 65 regardless of employment status), apply for NZ Super 2–3 months before turning 65, review your will and beneficiaries, understand your drawdown strategy, and calculate whether NZ Super + KiwiSaver income covers your expected spending.
1. KiwiSaver — Withdrawal Rules at 65
KiwiSaver becomes accessible at age 65 (the NZ Super eligibility age), regardless of whether you’re still working.
| KiwiSaver withdrawal rule | Detail |
|---|---|
| Minimum age | 65 |
| Minimum membership | None now: an older five-year rule for people who first joined on or before 30 June 2019 has run its course |
| Lump sum or regular withdrawals | Your choice, with no forced drawdown (regular withdrawals if your provider offers them) |
| Employer contributions | Your employer may stop contributing once you turn 65, depending on your contract |
| Government contribution | Stops at age 65 |
| Tax on withdrawals | None: you don’t pay tax on money you withdraw from KiwiSaver |
If you’re under 65, early access is only possible in specific situations, such as buying a first home, moving overseas permanently (not to Australia), serious illness, a life-shortening congenital condition or significant financial hardship.
2. Apply for NZ Super
NZ Super is available to NZ residents aged 65 and over who have lived in NZ for at least 10 to 20 years since age 20, depending on your date of birth (10 if born on or before 30 June 1959, rising to 20 if born on or after 1 July 1977), including 5 years since age 50.
| NZ Super rate (from 1 April 2026, weekly, after tax at “M”) | Amount |
|---|---|
| Single person, living alone | $555.15/week ($1,110.30/fortnight) |
| Single person, sharing accommodation | $512.45/week ($1,024.90/fortnight) |
| Couple, both qualify | $854.08/week combined ($1,708.16/fortnight) |
If only one partner qualifies: the option to include a non-qualifying partner in your NZ Super closed to new applicants on 9 November 2020. If your partner is under 65, you either receive NZ Super at the single rate (sharing accommodation) while they don’t get a payment, or you can both wait until your partner also qualifies.
Apply 2–3 months before your 65th birthday at Work and Income (workandincome.govt.nz). Payments start from your 65th birthday — not the application date.
NZ Super is taxable income. Your tax code for NZ Super (usually M or M SL) is set when you apply.
3. Calculate Your Retirement Income
Build a simple retirement income calculation:
| Income source | Weekly (example) | Annual |
|---|---|---|
| NZ Super (single, living alone) | $555 | $28,868 |
| KiwiSaver drawdown ($300k over 20 years) | $288 | $15,000 |
| Rental income (if applicable) | — | — |
| Part-time work (if applicable) | — | — |
| Total | $843/week | $43,868 |
Compare this to your expected spending. Use our Retirement Calculator NZ to model your specific numbers.
NZ average retirement spending: Approximately $700–$900/week for a single person, $1,000–$1,400/week for a couple (no mortgage).
4. Decide Your KiwiSaver Drawdown Strategy
There is no obligation to withdraw all your KiwiSaver at 65. Your options:
| Strategy | What it means |
|---|---|
| Leave it invested | KiwiSaver funds remain invested and grow (or fall) — draw as needed |
| Regular scheduled withdrawals | Set up regular withdrawals from your fund, if your provider offers them (how often depends on the provider) |
| Full lump sum | Withdraw everything at once; what the money earns afterwards depends on where you put it |
| Partial withdrawal + remainder invested | Take part of your balance and leave the rest in your fund |
Fund choice matters at retirement: Many people switch to a conservative or balanced fund near retirement to reduce volatility risk. Talk to a financial adviser or your KiwiSaver provider about the transition.
5. Review and Update Your Will
If you don’t have a will, make one before you retire. If you have one, review it:
- Does it reflect your current wishes?
- Have circumstances changed (divorce, remarriage, death of a beneficiary)?
- Is your executor still able and willing?
- Does it account for your KiwiSaver? KiwiSaver has no beneficiary nomination: your balance is treated as part of your estate and passes under your will
Without a will in NZ, your estate is distributed under the Administration Act — which may not match your wishes.
6. Update Beneficiary Nominations
These can pass outside your will, so check them separately (KiwiSaver is not one of them: it is part of your estate):
- Life insurance: Confirm beneficiary is current
- Workplace superannuation (if any): Review with scheme
7. Healthcare Planning
Public healthcare in NZ is broadly free, but retirement healthcare costs can include:
| Cost | Notes |
|---|---|
| GP visits | ~$20–$50 per visit (reduced for over-65s via CSC in many cases) |
| Community Services Card (CSC) | Income-tested — many NZ Super recipients qualify; reduces GP and prescription costs |
| Prescription costs | $5 per prescription (free in most cases with CSC) |
| Private health insurance | $80 – $250+/month; premiums rise significantly after 65 |
| Aged care / rest home | $1,100 – $1,500/week; means-tested government subsidy available |
Community Services Card: Apply when you apply for NZ Super. Many NZ Super recipients qualify — it reduces GP and prescription fees significantly.
Residential Care Subsidy: If you need to move to a rest home, the government subsidises the cost once your assets are below certain thresholds. From 1 July 2026: $300,811 for a single person (or a couple where both are in care, including the value of the family home and car), or $164,731 for a couple where only one partner is in care and you choose to exclude the family home and car from the assessment.
8. Power of Attorney
Set up an Enduring Power of Attorney (EPA) for:
- Property: Allows someone to manage your financial affairs if you cannot
- Personal care and welfare: Allows someone to make healthcare decisions if you cannot
An EPA must be set up while you are mentally capable — it cannot be done after incapacity. Cost: $400–$800 through a lawyer.
9. Relationship Property and Superannuation
If you’re in a relationship, discuss:
- How KiwiSaver and savings will be split between you both
- Whether your partner is also applying for NZ Super
- What happens financially if one of you dies first
- Property ownership — is the family home jointly owned or solely owned?
The Property (Relationships) Act 1976 makes most relationship property 50/50 after 3 years of cohabitation.
10. Debts — Clear Before Retiring If Possible
Entering retirement with debt is manageable but significantly reduces your financial flexibility:
| Debt type | Priority to clear | Notes |
|---|---|---|
| Mortgage | High — if possible | A paid-off home significantly reduces living costs |
| Car loan | High | Clear from KiwiSaver or savings if possible |
| Credit cards | Urgent | High interest; clear before stopping work |
| Student loan | Automatic — cleared at death; pause repayments when income drops |
Final Checklist Summary
- KiwiSaver withdrawal plan decided and fund type reviewed for retirement
- NZ Super application submitted (2–3 months before 65th birthday)
- Retirement income calculated and compared to expected spending
- Will reviewed and updated
- Life insurance beneficiaries confirmed
- Enduring Power of Attorney set up
- Community Services Card applied for
- Healthcare costs budgeted for
- Relationship property position understood
- High-interest debts cleared
- Mortgage status reviewed