KiwiSaver has become an all-of-life investment scheme with value for people aged one to 100.
A tweak to KiwiSaver law means the over 65s are now able to open a KiwiSaver account, if they don't already have one because they opened it before reaching superannuation age.
Many children have KiwiSaver accounts opened for them shortly after their births by keen parent, and many may well still have their accounts right up until the day they die.
Yes, these days KiwiSaver isn't so much a retirement savings scheme as a lifelong home-ownership/insurance-in-case-you-die/retirement/wealth management scheme.
The latest evolution in KiwiSaver is breaking the ban on accounts being opened by people aged over 65.
When we launched KiwiSaver we decided people turning 65 could keep their KiwiSaver schemes, but people over that age couldn't open one.
Clearly we did not see KiwiSaver as a scheme with value to over 65s.
That's changed.
Increasingly people aged over 65 are keeping their money in KiwiSaver.
Many don't need it on turning 65, and so leave it invested in KiwiSaver funds to earn capital gains, interest and dividends.
Some others don't need it all at once, and choose instead to make regular withdrawals of sums like $300 a fortnight from their KiwiSaver.
They do this to supplement their NZ Super to make life a bit easier, and are content to let the rest of their nest egg remain invested.
ASB, for example, allows regular withdrawals of $100 or more a fortnight, but most providers do something similar.
KiwiSaver was designed to put money beyond reach for working people, setting it aside for their retirement. Unless a 30-year-old dies, emigrates, hits financial hardship, or withdraws it to buy a first home, money in their KiwiSaver accounts is off-limits until they reach the age of 65.
People aged over 65 have virtually instant access to their KiwiSaver money, which makes it a convenient place to keep, and indeed to keep amassing, wealth.
Many over 65s are still in the workforce.
They can save some of that into KiwiSaver, and some employers will make matching contributions even though they are not required to by law.
The government doesn't pay member tax credits to KiwiSavers once they pass the age of 65, but that's okay. It's paying people's NZ Super by that time.
Some people may even be simply saving their NZ Super payments into KiwiSaver.
Postponing retirement is a good way of ensuring the retirement you finally have is as comfortable as possible.
Current low interest rates on bank term deposits are a big of a nightmare for people relying on them to supplement their retirement income.
This has led to a renewed interest in investment funds from some older investors, research by the Financial Markets Authority has found.
Some over 65s (who hopefully understand the investment risks they are taking) are actually moving nest eggs from places like bank deposits into KiwiSaver.
KiwiSaver has brought down fund fees, so managed funds are no longer the rort they were 20 years ago.
GOLDEN RULES:
* KiwiSaver is a lifelong wealth tool
* It can have value to over 65s
* Always understand the risks you are taking
