However, Forsyth Barr superannuation specialist Damian Foster warned there could be some issues left unresolved if those people turned 65 but wished to keep working and contributing to KiwiSaver because their retirement funds were not at the level planned.
"Our issue is that not all of those 16,000 will stop working on that day. KiwiSaver has an eligibility issue as the contributions can stop on the day people turn 65."
The Government would stop paying its contribution to the savers when they turned 65 and Mr Foster expected some employers to do the same while others would continue. He said he understood why the Government would stop its payments, because those people could be viewed as making money from superannuation payments as well as KiwiSaver.
However, he felt there could be discrimination involved if someone continued working until they were, for example, 67, but was not receiving employer KiwiSaver contributions while in employment beside younger people doing the same job and receiving the contributions.
"There are some arguments to be held around this point and they will take some fleshing out over the next two months. I expect many of those 16,000 to ask the question about what happens next," Mr Foster said.
Otago-Southland Employers Association chief executive John Scandrett said it was clear the Government contributions to KiwiSaver would cease at 65 but not so clear how many employers and employees would continue to make voluntary payments.
"Realistically, one could take the view that the wider the agreement on the dual forward contributions the better."
In all probability, there would be situations developing in some workplaces in which employees who were under 65 were benefiting from the maximum level of KiwiSaver contributions. At the same time, those staff members could be working alongside those over 65 who might no longer be recipients of Government or employer contributions.
"Are these older people disadvantaged?
"Probably not, since they will then be superannuation qualifying," Mr Scandrett said.
Those receiving their payouts from July 1 and into August would have an average of $10,000 saved, not a big sum but one they might want to continue having in a low-cost managed fund, Mr Foster said.
As KiwiSaver continued to grow, the payouts would become larger and younger people could expect savings of at least six figures.
In the longer term, people should receive the necessary advice to make the best decisions on their retirement savings, and that came down to an education campaign.
To change the contribution requirements for employers, Mr Foster said the Government would have to legislate. Given the ongoing debate around lifting the retirement age, he believed people were prepared to see the contribution lifted from the current 65 to about 67.
Prime Minister John Key and Finance Minister Bill English have continued to rule out the gradual lifting of the age of eligibility to receive New Zealand Superannuation.
Labour and the Greens are calling for it to rise.
At a glance
From July 1, people aged 65 and older, who have been in KiwiSaver for five years, will be eligible to withdraw their savings. About 16,000, with average savings of $10,000, become eligible throughout New Zealand in July and August.
