They may in fact not wish to annuitise
, as suggested, but instead choose to keep any KiwiSaver savings as a buffer for contingencies, to pay off a mortgage, or to make some investment that will improve their quality of life as they age.
The proposals to improve retirement tax incentives, harmonise and simplify the taxation of retirement contributions and benefits, including the need to annuitise
benefits under provident funds, were legislated through the Taxation Laws Amendment Act No.
While the above reasons are some of the most common reasons why retirees may decide to annuitise
, the fact is that everyone's circumstances are unique to them.
This means allowing more flexibility and suspending the requirement to annuitise
accrued pensions at the age of 75.
They must also annuitise
the majority (75 per cent) of these assets on retirement.