Funds untouched

More than two-thirds of 65-year-olds are leaving their money in their KiwiSaver accounts, even though they have become eligible to withdraw it, ANZ says.

It said, of the members of ANZ’s KiwiSaver schemes who became eligible to make a withdrawal in the 12 months to April 2022, 71% made no withdrawal, 17% made a partial withdrawal and 12% withdrew all their savings.

‘‘The way we have traditionally thought about retirement is changing. We are living a lot longer, and more people are working beyond the official retirement age,’’ said ANZ managing director for funds management, Fiona Mackenzie.

‘‘For some this is out of necessity, but for many working into their late 60s and even 70s, this is a choice.’’

She said, over the past four years, the average balance for ANZ’s KiwiSaver members aged 65 or over increased by almost 75%, to about $48,700. This compares to an average balance of just over $28,000 in 2018 and just over $20,000 in 2016.

‘‘It is encouraging to see those KiwiSaver balances growing. The data can’t tell us the whole story, but it is a good way of sparking a conversation and getting people to think about what sort of lifestyle they’d like to have after 65, and whether they are on track financially.’’

The data shows the average balance for ANZ’s KiwiSaver members aged 61 to 64 is around $47,800 and the average balance for 56 to 60 year olds is $45,700.

The data also shows 34% of members aged 66 to 75 and 11% of members aged over 75 are making employee KiwiSaver contributions.

When people are aged over 65, they can contribute to, and withdraw from, KiwiSaver when they want to.

‘‘Planning for retirement can seem daunting. But there are some really simple things people can do right now which will help set them up for the future,’’ Mackenzie said. ‘‘You should make sure you are in a fund that suits your age and risk profile and also try to make regular contributions.’’