KiwiSaver Withdrawal at 65 Tax Calculator NZ

This calculator clears up the tax on withdrawing your KiwiSaver at sixty-five in New Zealand, and shows the monthly income a gradual drawdown of your balance could provide. The good news, and the headline for anyone approaching retirement, is that there is no tax to pay when you withdraw your KiwiSaver. Unlike some overseas retirement schemes that tax lump sums on the way out, KiwiSaver earnings are taxed each year inside the fund at your prescribed investor rate, so the money has already been taxed as it grew, and you can take the whole balance out at sixty-five completely tax-free. What you then do with it is the real decision: take it all as a lump sum, or leave it invested and draw down a regular income so the remaining balance keeps working for you. You enter your KiwiSaver balance at sixty-five, the number of years you want the drawdown to last, and the return you expect on the money left invested, and the calculator confirms the lump sum is available tax-free and shows the monthly income a steady drawdown would provide over that period. Note that while withdrawals are tax-free, any earnings on the balance you leave invested are still taxed at your PIR. This is general information, not financial advice.

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
Advertise on this page
$
%
$200,000
available tax-free as a lump sum at 65
Or monthly drawdown income$1,056
Over25 years

Withdrawals at 65 are tax-free. Earnings on any balance you leave invested are still taxed at your PIR inside the fund. General information, not financial advice.

How it works

The lump sum available is simply your KiwiSaver balance, which you can withdraw tax-free at 65. The monthly drawdown income is the level monthly amount that would draw the balance down to zero over the chosen years while the remaining balance earns your assumed return, calculated with the standard loan-style payment formula.

Worked example

A 200,000 dollar balance is available tax-free at 65. If instead you leave it invested earning 4 percent and draw it down over 25 years, it could provide about 1,056 dollars a month, with the withdrawals themselves tax-free.

Related calculators

Data sources: the rates and thresholds on this page are maintained against Inland Revenue. Figures are checked twice monthly.

Frequently asked questions

Is KiwiSaver taxed when I withdraw it at 65?

No. Withdrawing your KiwiSaver at 65 is tax-free, because the investment earnings were already taxed each year inside the fund at your prescribed investor rate. There is no lump-sum tax on the money you take out.

Are earnings still taxed if I leave money in?

Yes. If you leave your balance invested and draw it down gradually, the fund keeps earning and that income is still taxed at your PIR inside the fund. It is only the act of withdrawing that is tax-free, not the ongoing earnings.

Should I take a lump sum or drawdown?

You can take it all at once or leave it invested and draw down regular amounts, which can keep your money working and provide an income. This tool shows the monthly income a drawdown of your balance could provide over a chosen period.