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

Quick answer: Taking your KiwiSaver as a lump sum and spending it at a fixed rate uses up the capital fastest, because none of it earns a return once withdrawn. Leaving it invested and drawing it down gradually lets the rest of the balance keep earning a return, which usually makes the same money last years longer, for example about 4.2 years longer on a $200,000 balance drawing $16,000 a year at a Balanced fund return of 3.5%. Enter your own numbers below.

This calculator compares two ways to use your KiwiSaver savings once you reach 65: taking it out as a lump sum and spending it down at a fixed yearly amount, or leaving it invested and drawing a staged income from it while the remaining balance keeps earning a return. Enter your KiwiSaver balance at 65, the annual amount you want to live on from it, and the fund type that sets the expected long-run return you would earn if you stayed invested. The calculator works out how many years a lump sum lasts once it stops earning any further return, compared with how many years the same yearly amount lasts if you leave the balance invested and draw it down gradually instead, since in that case investment growth keeps topping the balance up each year rather than only running it down. You can also add NZ Super for your living situation, to see your combined annual income from KiwiSaver and the pension together. This is built for anyone approaching 65, or already there, who wants to see, in real years and dollars, why staying invested usually stretches the same savings further than withdrawing everything at once. It updates instantly as you change any figure. Results are a projection based on the assumptions you enter, not a guarantee of future investment performance or a substitute for advice from a licensed financial adviser.

Calculate.co.nz is proud to be partnered with Health Based Building, a leader in sustainable and health-conscious building innovation. With over a century of experience, they develop high-performance systems like Foreverbreathe Specification, Magnum Board, and Foreverbreathe Paints to support energy-efficient, non-toxic living environments. Their commitment to healthier homes aligns with our belief that informed choices lead to better outcomes for Kiwi households.
Calculate.co.nz partner: Health Based Building
Updated  Current rates and legislation applied.
Verification & Methodology
Return assumptions: Conservative/Defensive 2.5%, Balanced 3.5%, Growth 4.5%, Aggressive 5.5% a year, net of typical fees and after tax at the 28% prescribed investor rate (PIR). These are the standard long-run projection figures used in KiwiSaver Fund Updates, set under the Financial Markets Conduct Regulations 2014.
Withdrawal rules: KiwiSaver savings can normally be withdrawn from age 65, provided at least 5 years of membership have also passed, under the KiwiSaver Act 2006. Withdrawals are not subject to further income tax, since fund earnings are taxed annually at each member's PIR.
NZ Super rates used: net fortnightly rate on the M tax code. Single, living alone $1,110.30 (about $28,867.80 a year). Single, sharing $1,024.90 (about $26,647.40 a year). Couple, each (both qualify) $854.08 (about $22,206.08 a year each, roughly $44,412.16 combined).
Last verified: July 2026, against Inland Revenue, Work and Income and Financial Markets Authority published figures.
$
$
4.2
more years your money lasts by staying invested and drawing it down, instead of taking a lump sum and spending it at the same rate
Lump sum lasts12.5 years
Staged drawdown lasts16.7 years
Sustainable withdrawal, forever$7,000.00
Total annual income with NZ Super$44,867.80

Lump sum assumes the money earns no further return once withdrawn, such as if it is spent steadily or held in a low or no-interest account. Staged drawdown assumes the remaining balance stays invested at your selected fund's return. Figures are a projection, not a promise, and exclude inflation and any tax on income earned outside KiwiSaver.

Next step: If you are within a few years of 65, ask your KiwiSaver provider whether they offer a regular automatic payment (drawdown) facility directly from your existing account, so your remaining balance stays invested and keeps earning a return while you draw an income from it. Compare the return and any fees on that facility against what a lump sum could earn elsewhere before deciding. Once you know your NZ Super entitlement, use the NZ Super Rate Calculator and Retirement: How Long Will My Money Last Calculator to build a full income picture across all your savings, not just KiwiSaver.

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

Official NZ sources

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