Retirement · 3 min read
When to dial down KiwiSaver risk before retirement
10 years out is the sweet spot. Here's the glide-path most NZ advisers use, and why it works.
Smiths Insurance and KiwiSaver
Published 11 February 2026 · FAP licensed · FSP712931
The classic rule: start dialling down KiwiSaver risk about 10 years before you plan to draw down. Not because growth funds become "bad". but because the consequences of a drawdown right before retirement are asymmetric.
Why 10 years
If you're 25 and the market drops 30%, you have 40 years to recover. No problem. keep investing through the drop.
If you're 64 and the market drops 30%, you have one year to recover before you start drawing down. That's not enough. You'll be selling at the bottom to fund retirement spending.
10 years is the buffer that lets you ride out one full market cycle. Most major drawdowns recover within 3-5 years, so 10 gives you margin.
A simple glide-path
- Age 50-55: Aggressive or Growth (you still have 10-15 years).
- Age 55-60: Move to Growth.
- Age 60-63: Move to Balanced.
- Age 63-65: Move to Conservative.
- Drawing down (65+): Stay Conservative or Defensive for the bucket you're spending from this year; keep a Growth allocation for money you won't touch for 7+ years.
Lifecycle funds do this for you
Some KiwiSaver schemes (BNZ, Mercer, SBS Lifestages) have lifecycle funds that automatically dial down as you age. The criticism is they often de-risk too early. moving you to Conservative in your 50s means you miss out on a decade of growth.
If you're using a lifecycle fund, check the actual glide-path. If it's moving you to Conservative before age 55, consider switching to a fixed Growth fund and managing the dial-down yourself.
Run the Health Check and we'll match you to the right band based on your actual retirement timeline.
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