What next for KiwiSaver

She said a KiwiSaver member’s balance would need to be near $100,000 to be able to be spread across retirement. At the moment, most balances are about $40,000 – but that is growing quickly.

“About one-third of members take their money out at the age of 65. We see another one-third taking a regular withdrawal from their KiwiSaver account. A lot of people actually continue to invest in KiwiSaver and add to it. I guess they’ve seen the benefits of saving through KiwiSaver. It’s really important that, when people hit 65, they ensure that they know their timeframe of future spending, to make sure that they are appropriately investing.”

More decumulation products would need to be developed, she said. “There’s a demand for it.”

More than $1 billion has been withdrawn from KiwiSaver for first-home deposits over the 10 years the scheme has been operating but Lockyer said she supported that function.