Enjoying retirement

Your retirement journey is about more than just ensuring your nest egg is secure and wisely managed. It’s about striking a balance between financial stability and supporting life’s new adventures and experiences.

4 minute read

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If you’re close to retirement or already retired, having a good plan for your finances and wellbeing will help set you up to enjoy the years ahead. Staying healthy, keeping active, and managing your finances all play their part.

Managing your retirement income

When you retire, your income could come from a few different sources. That includes your KiwiSaver savings, NZ Super, and other savings and investments you may have built up during your working years. And if you’ve retired on a limited income, you may also be eligible for additional Government support.

There are a lot of things to consider when deciding how to structure your retirement income, but one of the big decisions is when to start making withdrawals from your KiwiSaver savings. You’ll also need to decide how much and how often you’ll make those KiwiSaver withdrawals.

If you’re not sure where to begin, Sorted has a good retirement calculator tool that helps you to work out how your retirement savings might be spread across your entire retirement timeframe, to fit with the kind of retirement lifestyle you want.

Managing your retirement spending

Budgeting throughout retirement can often seem like a daunting task, but it doesn’t have to be. The key is to take a systematic approach, by taking into consideration your overall financial situation, potential retirement income, and daily living costs.

During retirement, a budget can be a very useful tool to plan your expenses and ensure you’re living within your means, including those unexpected costs and emergencies. You’ll also want to consider leisure activities, hobbies and planning for life’s new adventures - after all, you’ve earnt it! It can be a good idea to consult with a financial advisor to help create a tailored plan that suits your needs.

Looking after your nest egg

Leaving some or all of your savings invested when you retire can help you to maintain and even grow your wealth. After all, you don’t have to withdraw all of your investments just because you’re retired.

Staying invested can also help to safeguard your savings by providing diversified market exposure. That’s because spreading your money out across multiple types of investments can help to smooth out the ups and downs as the value of investments fluctuate.

If you decide to stay invested in KiwiSaver, it’s important to think about which fund you’re in, and to review this frequently to make sure it still matches your retirement situation. Learn more about why fund choice is so important during retirement.

Looking after you

As well as nurturing your financial health, it’s also important to take care of your physical, mental and emotional health. Retirement can be a wonderful stage of life that opens up possibilities for exploration and self-discovery.

Overall, it’s worth keeping in mind that when it comes to retirement, self-care is not a luxury, it’s a necessity. Perhaps travel, gardening, painting, or cooking have been passions left on the back burner during your working years – now is the time to bring them to the fore.

Thinking ahead

Proactive planning around your financial legacy is another essential aspect of managing life post-retirement. This includes estate planning and regularly updating your will to ensure that your assets are distributed according to your wishes. You may also like to consider establishing a living will and enduring power of attorney, which outlines your wishes should you become incapable of making decisions on your own.

Although this type of planning can be a challenge for many, spending some time thinking ahead will ensure your peace of mind, and the wellbeing of your loved ones. Professional legal advice can often be beneficial in navigating these matters.

Key takeaways

Enjoying retirement is about finding a balance between preserving your wealth and embracing the exciting new experiences life has to offer. Planning your retirement income, keeping tabs on your budget, looking after your health and taking care of your nest egg will all play their part in a holistic approach to the years ahead.

With many New Zealanders working and living for longer, staying invested can be a great way to continue growing your savings so that you keep your money working for longer. As well as getting a plan in place, remember to take time for yourself, to relax and enjoy this well-earned phase of life.

How to make the most out of KiwiSaver when you turn 65

KiwiSaver offers great flexibility for over 65s, with generally lower fees and access to your savings whenever you need it.

Managing your money when you retire

If you’re close to retiring or have already retired, then make sure you have a plan in place to stay on top of your finances.

Choosing the right fund for your retirement timeframe

Being in the right fund is important for all KiwiSaver members – and it’s especially important when you’re close to retirement or already retired.

Related tools

KiwiSaver calculator

KiwiSaver options at 65

Find out more

References to third party websites are provided for your convenience only. BNZ accepts no responsibility for the availability or content of such websites.

This article is solely for information purposes and is not intended to be advice with respect to any matter discussed in it. If you need help, please contact BNZ or your professional adviser. Neither BNZ nor any person involved in the material accepts any liability for any direct or indirect loss or damage arising out of the use of, or reliance on, all or any part of the content.

BNZ Investment Services Limited, a wholly owned subsidiary of Harbour Asset Management Limited, is the Issuer and Manager of the BNZ KiwiSaver Scheme. Download a copy of the BNZ KiwiSaver Scheme Product Disclosure Statement PDF 1.1MB, or pick up a copy from a BNZ branch.

Investments in the BNZ KiwiSaver Scheme are not bank deposits or other liabilities of Bank of New Zealand (BNZ) or any other member of the National Australia Bank Limited group. They are subject to investment risk, including possible delays in repayment. You could get back less than the total contributed. No person (including the New Zealand Government) guarantees (either fully or in part) the performance or returns of the BNZ KiwiSaver Scheme or the repayment of amounts contributed. National Australia Bank Limited, the ultimate owner of BNZ, is not a registered bank in New Zealand but a licensed bank in Australia and is not authorised to offer the products and services mentioned on this webpage to customers in New Zealand.

BNZ Investment Services Limited (BNZISL) uses the BNZ brand under licence from Bank of New Zealand, whose ultimate parent company is National Australia Bank Limited. No member of the FirstCape group (including BNZISL) is a member of the NAB group of companies (NAB Group). No member of the NAB Group (including Bank of New Zealand) guarantees, or supports, the performance of any member of FirstCape group’s obligations to any party.