KiwiSaver at 65: Lump Sum vs Drawdown Calculator NZ 2026/27

How this calculator works

Two scenarios are compared side by side, using the same starting balance and the same annual amount drawn. The lump sum scenario assumes you withdraw everything at once and simply spend it down at your chosen yearly amount, with no further investment return, a stand-in for money that ends up in everyday spending or a low-interest account. The staged drawdown scenario assumes you leave the balance invested at your selected fund's expected return and withdraw the same yearly amount, so the remaining balance keeps growing even as you draw from it. If your drawdown is less than or equal to what the balance earns in a year, it never runs down and the money lasts indefinitely. Otherwise, the calculator works out the number of years until each scenario reaches zero.

Worked example

Take someone who reaches 65 with a $200,000 KiwiSaver balance, wanting to draw $16,000 a year, invested in a Balanced fund assumed to return 3.5% a year net of fees and tax. Taken as a lump sum and spent down at $16,000 a year with no further return, the money lasts exactly 12.5 years, to about age 77 and a half. Left invested and drawn down gradually instead, the balance keeps earning 3.5% on whatever remains each year, and the same $16,000 a year lasts about 16.7 years, to about age 81 and a half, roughly 4.2 years longer. Adding NZ Super for someone living alone, currently $28,867.80 a year net, brings total annual income during the drawdown to about $44,867.80. Had this person only drawn $7,000 a year or less, the balance would never run down at all, since that is what a 3.5% return on $200,000 produces each year by itself.

Lump sum vs staged drawdown: what actually differs

Neither option changes how much tax you pay, since KiwiSaver earnings are taxed each year inside the fund at your prescribed investor rate, so both are tax-free in your hands. What differs is what happens to the money not yet spent. A lump sum sitting in an everyday account earns little or nothing, so every dollar drawn is capital gone for good. Money left invested keeps earning a return on the balance still there, which is why the same yearly drawdown tends to last longer. The trade-off is risk: cash cannot fall in value, while an invested balance can still move with markets, even in retirement. A lump sum can also suit clearing high-interest debt or a one-off cost.

KiwiSaver withdrawal rules at 65

You can normally access your KiwiSaver savings once you reach 65, the NZ Super qualification age, provided you have also been a KiwiSaver member for at least 5 years. If you joined later in life, for example in your early 60s, the 5-year rule can push your actual withdrawal date past your 65th birthday. There is no requirement to withdraw anything at 65: you can leave your whole balance invested for as long as you like, and keep contributing yourself, though you stop qualifying for the annual government contribution once you reach your withdrawal date. Most providers let you take a full lump sum, leave everything invested, or set up regular automatic withdrawals from your existing account, and you can usually change your mind later.

Adding NZ Super to your total income

NZ Super is paid on top of any KiwiSaver income and is entirely separate from it. Taking a KiwiSaver lump sum or drawdown does not reduce your NZ Super, and NZ Super is not tested against your KiwiSaver balance or other savings. Select your living situation to add the current net rate to your total annual income figure above. A qualifying couple is paid individually, so with a partner who also qualifies, roughly double the couple figure shown for your combined household income.

What this calculator assumes

• A lump sum earns no further return once withdrawn, an approximation for money spent steadily or held in a low or no-interest account.
• A staged drawdown stays invested at the flat return you select for your fund type, with no year-to-year market ups and downs.
• Withdrawals happen once a year at the amount you enter and do not increase with inflation.
• NZ Super rates used are the current net fortnightly rates on the standard M tax code; other income can affect the tax you actually pay on NZ Super.
• Results are a projection based on the figures you enter, not a forecast or financial advice.

Who this calculator is for

This is for anyone within a few years of 65, or already there, deciding what to do with a KiwiSaver balance: take it all out, leave it invested, or draw a regular income from it. It also suits family members helping a parent plan, wanting to see the practical difference between a lump sum and a staged drawdown.

Frequently Asked Questions about KiwiSaver at 65

What happens to my KiwiSaver when I turn 65?

You become eligible to withdraw some or all of your savings once you turn 65 and have been a member for at least 5 years. You are not required to withdraw anything, and can leave your balance invested for as long as you like.

Should I take my KiwiSaver as a lump sum or drawdown it gradually?

It depends on your other income, any debt, your health, and whether you want the balance to keep growing. Drawing it down gradually usually makes the same money last longer than a lump sum spent at the same rate, as shown above, but a lump sum can suit clearing high-interest debt or a major one-off cost.

Do I pay tax on KiwiSaver withdrawals after 65?

No. Earnings are taxed each year inside the fund at your prescribed investor rate, so the withdrawal itself, lump sum or drawdown, is not further taxed as income.

Can I leave my KiwiSaver invested after 65 and take regular payments?

Yes. Most providers let you leave your savings invested and set up regular automatic withdrawals instead of taking everything out at once, and you can usually change the amount or stop at any time. Check the options with your provider.

Can I keep contributing to KiwiSaver after I turn 65?

Yes, and your employer generally must keep contributing too if you are still working. Once you reach your withdrawal date, though, you stop qualifying for the annual government contribution even if you keep contributing yourself.

What return should I use for the drawdown calculation?

Use a realistic long-run return, net of fees and tax. This calculator uses the standard FMA fund-type assumptions: 2.5% Conservative or Defensive, 3.5% Balanced, 4.5% Growth and 5.5% Aggressive.

Does this calculator include NZ Super?

You can add it. Select your living situation to add the current net rate to your total annual income figure. NZ Super is paid on top of any KiwiSaver income and does not reduce it, or vice versa.

What if I draw less than my investment return each year?

Your balance never shrinks. If your annual drawdown is less than or equal to what it earns at your selected return, growth alone covers the withdrawal, and the balance lasts indefinitely.

Related calculators

• Retirement: How Long Will My Money Last: the same longevity question for any savings pot, not just KiwiSaver.
• NZ Super Rate Calculator: check the exact fortnightly, weekly and annual NZ Super rate for your living situation.
• KiwiSaver Retirement Projection Calculator: project your balance forward to 65 before you get here.
• KiwiSaver Fee Drag Calculator: see what fees cost your balance before you retire.
• Retirement Number Calculator: work out the nest egg you need in the first place.
• KiwiSaver After 65 Explained: background on this topic.

Official NZ sources

This calculator is built from primary New Zealand sources. Always confirm current figures against the official source for your situation:

• Inland Revenue (IRD): KiwiSaver withdrawal rules and government contribution
• Sorted (Te Ara Ahunga Ora, Retirement Commission): KiwiSaver and retirement planning guidance
• Work and Income: NZ Superannuation rates and payments
• Financial Markets Authority: KiwiSaver Fund Update return assumptions