Getting ready for retirement

Setting up regular withdrawals from your investment account is one of the most straightforward ways to create a reliable income stream in retirement. You can choose to withdraw a fixed dollar amount at set intervals, such as monthly or quarterly while the rest of your balance stays invested and continues working for you in the background. This approach suits people who want their retirement income to feel structured and predictable, without having to think about it too much from one month to the next.

One of the advantages of regular withdrawals is that they can usually be adjusted over time. If your expenses increase such as from travel plans or healthcare costs you can look to increase the amount you're drawing. Equally, if you find you're not spending as much, you can scale back and leave more invested. This flexibility makes regular withdrawals a practical option for people whose income needs are likely to shift throughout retirement, rather than staying constant from age 65 onwards.

Regular withdrawals don't have to work alone. Many people pair this approach with the bucket strategy by setting up automated withdrawals from their short-term bucket to cover day-to-day costs, while their medium and long-term buckets remain invested for growth. This combination can give you the convenience of a steady income alongside the peace of mind that your longer-term savings aren't being touched unnecessarily.

MAS members can choose to make regular withdrawals from any of their investment options. MAS KiwiSaver Scheme members can withdraw from their investment from age 65 while some MAS members invested in the MAS Retirement Savings Scheme, can start to withdraw from age 55 including transferred UK pension funds once they are eligible.

A bucket strategy is a method of placing your retirement savings into separate pools based on when you'll need to use them. Each bucket holds a different type of investment, matched to how soon you'll draw from it. Typically this means a short-term bucket for everyday expenses and emergencies for 1-3 years which could be in a savings account or a low-risk cash investment, a medium-term bucket invested in balanced investments designed to grow your money over time while cushioning the impact of market ups and downs to replenish it over time, and a longer-term bucket invested for growth. As you spend from the short-term bucket, the others gradually refill it. This keeps your income flowing without having to sell growth investments at the wrong time. The strategy can be adapted as your needs change throughout retirement, whether that's higher spending in your early active years or rising health costs later on.

By keeping near-term income in lower-risk investments, you reduce the chance of being forced to sell your long term investments during a market downturn, which can permanently affect your retirement balance. There's also a meaningful psychological benefit. Knowing your day-to-day costs are covered regardless of what markets are doing can make it easier to stay the course with your longer-term investments during periods of volatility. This structure can also help you manage the risk of outliving your savings. By keeping some money invested for growth over the long term, your savings have a better chance of lasting through retirement.

The value of your buckets will shift over time as markets move and your spending changes. Reviewing your allocations perhaps once a year or after a major life event, helps ensure each bucket still reflects your upcoming and longer-term financial needs. This is an area where a financial adviser can add real value, helping you decide when and how to rebalance between buckets in a tax-efficient way.

A lump sum withdrawal allows you to withdraw part or the entirety of your retirement savings on an ad hoc basis. The right approach will depend on your personal circumstances, financial position, and lifestyle goals at the time you become eligible to access your funds. While this can provide immediate access to your money, it’s important to consider both the short and long‑term impact of this choice.

A lump sum can be useful for paying off a remaining mortgage or other outstanding debt, funding significant one-off expenses like home renovations, or travel. Careful planning can help ensure that any lump-sum withdrawals align with your broader income strategy and long-term financial security.

MAS Members can choose to make lump sum withdrawals from any of their investment options. MAS KiwiSaver Scheme members can draw down from their investment from age 65 while some MAS Members invested in the MAS Retirement Savings Scheme, can start to draw down from age 55 including transferred UK pension funds once they are eligible.