Working past 65? KiwiSaver deductions only continue if you opt in, the employer match is no longer compulsory, and the government top-up stops at 65. Here is how the rules actually work and how to weigh keeping up payments against starting drawdown.
A growing number of New Zealanders are working past 65, and KiwiSaver does not simply switch off when you get there. You can keep contributing, and you can start drawing on the money at the same time. What does change is the help around your contributions: the compulsory employer match and the annual government top-up both fall away once you reach 65. Knowing which parts continue and which parts stop is the first step in deciding whether to keep paying in.
This guide walks through each rule in turn, then looks at how people weigh keeping up contributions against starting drawdown.
TL;DR: KiwiSaver past 65
TL;DR: You can keep contributing to KiwiSaver after 65, but your employer is no longer legally required to match, and the government contribution stops at 65 12. You can also withdraw and keep paying in at the same time 5. With no match or top-up, contributing past 65 mostly comes down to your own cash flow and goals.
Does KiwiSaver keep coming out of your pay after 65?
If you are an employee, KiwiSaver deductions can continue past 65, but they are no longer automatic in the way they were when you joined. Once you reach the qualifying age, you move out of the standard "compulsory" settings, so whether contributions keep coming out of your pay depends on your arrangement with your employer.
Many people in this situation choose to keep contributing because they are still earning and want to keep building (or topping up) their balance. Others stop, take home the extra pay, and leave their existing balance invested. Both are valid; the right call depends on your income, your other savings and what you are trying to do with the money.
If you do keep contributing as an employee, you can still choose a rate of 3%, 4%, 6%, 8% or 10% of your gross pay 9. If you are self-employed or not earning a wage, you can pay in by voluntary lump sums or a regular direct debit instead.
Is your employer still required to match after 65?
No. Once you reach the KiwiSaver qualifying age of 65, your employer is no longer legally required to make compulsory employer contributions 1. This is one of the bigger changes to be aware of, because the employer match is a meaningful part of what makes contributing while working so effective before 65.
Some employers do continue contributing voluntarily by agreement 1. That is entirely up to them, and it is worth asking your payroll or HR team what their policy is, because the answer directly affects the maths on whether to keep paying in.
| Contribution element | Before 65 | After 65 |
|---|---|---|
| Your own contributions (employee or voluntary) | Yes | Yes — you choose to continue 9 |
| Compulsory employer match | Yes (at the minimum rate) | Not required; some employers continue voluntarily 1 |
| Government contribution (top-up) | Yes, ages 16–65 2 | Stops at 65 2 |
| Withdraw your balance | Generally not until 65 | Yes, once eligible 5 |
The headline: after 65, the two "free money" elements that made contributing such an easy decision earlier on are no longer guaranteed.
Does the government contribution still apply past 65?
No. The KiwiSaver government contribution (sometimes called the member tax credit) is only available to members aged 16 to 65, so it stops once you reach 65 2. If you joined KiwiSaver later in life and are inside the five-year locked-in period, eligibility runs to the end of the relevant contribution year, but it does not extend indefinitely past 65 2.
For context, while you are eligible the government currently matches 25 cents for every $1 you contribute, up to a maximum of $260.72 a year, provided you personally contribute at least $1,042.86 between 1 July and 30 June (IRD, from 1 July 2025) 3. Members earning more than $180,000 of taxable income a year no longer qualify for any government contribution from 1 July 2025 4. Once you turn 65, none of this applies to you anymore, which removes one of the common reasons people contribute the precise amount needed to "max out" the top-up.
Should you keep contributing to KiwiSaver while working past 65?
With no compulsory match and no government top-up, contributing after 65 becomes a more straightforward question of your own cash flow and goals. There is no longer a bonus that makes a particular contribution level obviously worthwhile, so it comes down to whether KiwiSaver is a sensible home for money you do not need right now.
Things people in this position often weigh up include:
- Whether you still need the money to grow. If you plan to keep working for several more years, continued contributions plus investment returns can still add to your balance, though returns are not guaranteed and can go down as well as up.
- Your fund type and timeframe. Money you will not touch for years can sit differently from money you will draw on soon. A balanced or growth fund carries more short-term ups and downs than a conservative one.
- Tax on returns. KiwiSaver funds are Portfolio Investment Entities (PIEs), so the maximum prescribed investor rate (PIR — the tax rate on your KiwiSaver earnings) is capped at 28%, and that remains the case after 65 6. This can be lower than the tax on the same money held elsewhere, depending on your income.
- Flexibility versus discipline. KiwiSaver is less accessible than an ordinary savings account, which some people value as a way to keep money invested, and others find restrictive.
To illustrate how little difference contributions make once the match and top-up are gone, the chart below models someone on a $60,000 salary in a balanced fund who keeps contributing 3.5% from 65 to 70 (with no employer match and no government top-up) against someone who stops and leaves the same balance invested.
Figure — Working past 65: keep contributing vs stop (balance at 70)
| Scenario (from age 65 to 70) | What drives the balance | Balance at 70 |
|---|---|---|
| Keep contributing 3.5% of $60k (no match, no top-up) | Existing balance growing + ~$2,100/yr of your own money | Higher — by roughly the contributions you made plus their growth |
| Stop contributing | Existing balance growing only | Lower — but you kept the take-home pay |
Modelled from IRD over-65 rules and balanced-fund returns, 2026. Projections are illustrations based on stated assumptions, are not predictions, and actual results will differ. Returns are not guaranteed and the value of investments can go down as well as up.
The point of the model is not the exact figures, which depend entirely on returns, but the shape: after 65 the extra balance from contributing comes almost entirely from the money you put in yourself, not from any external boost. That is a very different proposition from contributing before 65.
Can you withdraw and keep contributing at the same time?
Yes. Once you reach the age of eligibility you can make withdrawals from KiwiSaver, even while you are still working, and you can keep contributing at the same time 5. There is no rule that forces you to choose one or the other.
In practice this means you could, for example, keep contributing a small amount from your wages while also drawing a regular sum to supplement your income. Whether that combination makes sense is a cash-flow question rather than a rules question; for some people it is just moving money in one door and out the other, while for others the structure suits how they like to manage their finances.
How to use KiwiSaver as a working-retirement income tool
Many people working past 65 use KiwiSaver alongside NZ Superannuation rather than instead of it. NZ Super is a base income paid to those who qualify, and KiwiSaver can sit on top of it. For reference, NZ Superannuation (after tax, M tax code) was $1,076.84 a fortnight for a single person living alone (about $27,997 a year), and $828.34 each for a couple who both qualify, i.e. $1,656.68 combined a fortnight (about $43,073 a year combined) — the rates in force from 1 April 2025 to 31 March 2026 (Work and Income) 78.
Because you can withdraw and contribute at the same time 5, KiwiSaver can work as a flexible top-up: you decide how much to draw and how often, and you can adjust as your work hours change. A few approaches people use:
- Leave it invested and draw as needed. Keep the balance in a suitable fund and make occasional withdrawals for larger costs.
- Set up a regular drawdown. Take a set amount each month or quarter to supplement wages or NZ Super. Our guide to KiwiSaver drawdown options in retirement walks through how these work.
- Keep contributing while you still earn. If you do not need the money yet, continued contributions keep building the balance, subject to the usual investment risk.
The right mix depends on your spending, your other assets and how long you expect to keep working. Our overview of NZ Super rates and eligibility for 2026 covers how the base income fits in, and when can I retire in NZ looks at the wider timing question.
When to stop contributing and switch to drawdown
There is no single right moment to stop paying in and start drawing down. It tends to come down to whether you still have surplus income to contribute, and whether you have reached the point where using the money matters more than growing it.
Signs people often take as a prompt to review the balance between the two include reducing their work hours, a change in income, or simply reaching a stage where they would rather spend than save. The key thing the rules give you is flexibility: because the match and government top-up are already gone after 65, there is no penalty in timing terms for switching from contributing to drawing down whenever it suits.
Our companion guide on the KiwiSaver withdrawal age of 65 covers exactly what you can take out and when.
Planning your over-65 KiwiSaver with an adviser
Decisions about contributing past 65, when to start drawing down, and how KiwiSaver fits with NZ Super and any other savings are personal, and they interact with your tax, your fund choice and your timeframe. This article is general information, so the value of a conversation is working through what actually fits your situation rather than the rules in the abstract.
Smiths Financial has no in-house KiwiSaver product, so any review looks across providers and is built around your circumstances rather than a particular fund. We're generally paid by commission from the provider when you take out a product through us; this doesn't change the price you pay, and we manage any conflicts of interest in line with our duty to prioritise your interests — full details in our Disclosure.
Frequently asked questions
Can I still contribute to KiwiSaver after I turn 65? Yes. You can keep contributing after 65, either through your pay as an employee or by voluntary payments 5. What changes is that your employer is no longer required to match, and the government contribution stops 12.
Does my employer have to keep matching my KiwiSaver after 65? No. Once you reach the qualifying age of 65, employers are no longer legally required to make compulsory contributions, although some continue voluntarily by agreement 1. It is worth asking your payroll or HR team what their policy is.
Do I still get the government contribution after 65? No. The government contribution is only available to members aged 16 to 65, so it stops once you reach 65 (or the end of the relevant contribution year if you joined later under the five-year locked-in rule) 2.
Can I withdraw from KiwiSaver and keep contributing at the same time? Yes. Once you reach the age of eligibility you can make withdrawals even while still working, and you can keep contributing at the same time 5.
Is it still worth paying into KiwiSaver after 65? That depends on your situation. With no employer match or government top-up, the extra balance comes almost entirely from your own contributions and any investment returns, which are not guaranteed 6. Whether that suits you is a cash-flow and goals question worth talking through.
How is my KiwiSaver taxed after 65? KiwiSaver funds are PIEs, so the maximum prescribed investor rate (PIR) on your KiwiSaver earnings is capped at 28%, and that remains the case after 65 6. Check your PIR is correct so you are neither overpaying nor underpaying.
This article is general information only and is not personalised financial advice. It does not take into account your particular financial situation, goals or needs. Before acting, consider whether it's right for you and seek advice tailored to your circumstances. KiwiSaver is a long-term savings scheme; government contributions, contribution rates, withdrawal rules and tax (PIR) settings are set by the Government and can change. Figures are correct as at 28 October 2025 — check current rules at ird.govt.nz, kiwisaver.govt.nz and sorted.org.nz. Returns are not guaranteed and the value of investments can go down as well as up. Craig Smith Business Services Ltd (FSP712931), trading as Smiths Financial, holds a Class 2 licence issued by the Financial Markets Authority to provide financial advice and is a member of the Financial Dispute Resolution Service (FDRS). Written by Henry Smith, Financial Adviser; reviewed by Craig Smith, Principal Adviser. Last reviewed 28 October 2025.
Sources
- 1.Inland Revenue — Over 65 and KiwiSaver (compulsory employer contributions no longer required once you reach the qualifying age of 65; some employers continue voluntarily, as at 28 October 2025).
- 2.Inland Revenue — Getting the KiwiSaver government contribution (available to members aged 16 to 65 only, as at 28 October 2025).
- 3.Inland Revenue — KiwiSaver changes (government contribution 25c per $1, maximum $260.72 a year; $1,042.86 personal contribution to receive the full amount, from 1 July 2025).
- 4.Inland Revenue — KiwiSaver changes ($180,000 taxable income cut-off for the government contribution, from 1 July 2025).
- 5.Inland Revenue — Withdrawing funds when you turn 65 (you can withdraw once eligible while still working, and keep contributing at the same time, as at 28 October 2025).
- 6.Inland Revenue — Using prescribed investor rates (KiwiSaver funds are PIEs; maximum PIR capped at 28%, as at 28 October 2025).
- 7.Work and Income — Benefit rates at 1 April 2025 (NZ Super single living alone $1,076.84 per fortnight after tax, M tax code; 1 April 2025 to 31 March 2026).
- 8.Work and Income — Benefit rates at 1 April 2025 (NZ Super couple both qualify $828.34 each / $1,656.68 combined per fortnight after tax, M tax code; 1 April 2025 to 31 March 2026).
- 9.Inland Revenue — KiwiSaver changes (employee contribution rates 3%, 4%, 6%, 8% or 10%; default minimum 3% rising to 3.5% from 1 April 2026, as at 28 October 2025).
Next step
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