The latest data from the FMA KiwiSaver Report 2025 shows how financial habits and lifestyles of the over-65s are changing.
Instead of cashing in their entire KiwiSaver savings once they hit 65, members are increasingly drawing down their KiwiSaver funds gradually (decumulating) and using it as an income stream.
As a whole, they’re also withdrawing less money, in fewer transactions.
Total withdrawals by members aged 65+ decreased by 1.3% to just under $3 billion, while the number of withdrawals fell from 36,652 to 31,470, a 14.1% decline.
These declines are in spite of there being more members aged 65+ and eligible to withdraw. That group increased to 197,312, up from 184,190 last year.
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KiwiSaver investment at 65
Getting the most out of KiwiSaver after age 65
Behaviour has changed – so investment strategy needs to evolve too
For years, the accepted wisdom has been that when you reach 65, it’s time to move your retirement savings into a conservative fund – something lower risk and more stable.
However your investment strategy at retirement shouldn’t be based solely on your age, but when you actually plan to use the money.
“If you’re not drawing down your KiwiSaver savings all at once – and according to this FMA Report many people aren’t – you could still have 20–30 years ahead of you. That’s a long time to stay too conservative, and a potentially a big opportunity cost from not staying with a growth or balanced fund for longer,” says Stephanie Whittaker, Generate Wealth Adviser.
It’s also a great argument for getting KiwiSaver advice at all stages along the way, not just when you first sign up.
"At Generate, we know that good advice makes a real difference. With over 90% of our members having spoken to an adviser, they’re more likely to be in the right fund for their goals no matter what their age," says Whittaker.