Accessing your savings
When can you access your savings?
You become eligible to withdraw your savings (including the government kick-start and member tax credits) as a lump sum when you qualify for NZ Super (currently 65).
If you joined KiwiSaver between the age of 60 and 65, you'll be able to access your savings after you've been a KiwiSaver member for five years.
Example
Paul is a 62 year old teacher living in Rotorua. He decided to opt in to KiwiSaver and became a member in September 2007. Paul will be able to access his savings in five years' time (September 2012), when he's 67 years old.
How much will your savings be worth?
Your scheme provider's investment statement will explain how they will invest your money and what returns you can expect. Your scheme provider will also let you know how your investment is doing.
The Retirement Commission's Sorted website also includes a calculator that estimates what your savings may be worth when you become eligible to withdraw them.
How do you access your savings?
When you become eligible to access your savings, apply to your scheme provider.
Note:
Any withdrawals from your KiwiSaver account are tax-free.
Can you access your savings earlier?
In some cases you may be able to make an early withdrawal of part (or all) of your savings. You should check with your scheme provider:
- what amounts you can withdraw, and
- whether there are any special terms and conditions for withdrawing employer contributions.
| You may be able to make an early withdrawal if you ... | but you won't be able to withdraw the ... |
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have been a KiwiSaver member for 3 years and are buying your first home (that you will live in, not own as an investment property) Note:You may also be eligible for a first home deposit subsidy and be able to divert up to half of your contributions to your mortgage. |
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experience, or are likely to experience, significant financial hardship |
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moved overseas permanently (emigrated), over a year ago |
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Note:
If you die, your KiwiSaver savings are paid to your estate.
How do you apply to access your savings early?
Within the first three months of joining, if you need to withdraw your savings early, in most cases you apply to us. If you're not an employee, you apply to your scheme provider.
After three months you apply to your scheme provider.
Claiming significant financial hardship
Significant financial hardship includes difficulties that arise because you're:
- unable to meet minimum living expenses
- unable to meet mortgage repayments on your family home, resulting in your mortgage provider seeking to enforce the mortgage on your property
- modifying your home to meet special needs arising from you or a dependent family member having a disability
- paying for medical treatment if you or a dependent family member becomes ill, has an injury or requires palliative care
- suffering from a serious illness
- incurring funeral costs if a dependent family member dies.
For significant financial hardship withdrawal, the scheme trustees (or Inland Revenue if the request is made in the first three months of membership) will want to know that reasonable alternative sources of funding have been explored.
You may be required to complete a statutory declaration about your assets and liabilities, and to provide other documents or information to support your application.
The amount you can withdraw may also be limited to a specified amount.
Claiming serious illness
Serious illness means that you are permanently and totally disabled, or death is imminent.
Medical evidence may be required to support your application.
You will be entitled to withdraw the total accumulation in your account, including the current value of the $1,000 kick-start, and any member tax credits and employer contributions you have received.
Moving overseas - permanent emigration withdrawals
You can apply for a permanent emigration withdrawal after you've been overseas for one year. If you're applying for this type of withdrawal you must include:
- a statutory declaration stating you have permanently emigrated from New Zealand, and
- evidence that you have:
- departed from New Zealand (for example, your passport records), and
- resided at an overseas address at some time during the year after your departure from New Zealand.
After you've been in Australia for one year you can withdraw your funds from KiwiSaver if you're permanently emigrating to Australia.
Alternatively, at any time after permanently emigrating you may be able to transfer all of the funds in your KiwiSaver scheme to a foreign superannuation scheme.
Will early withdrawal of your savings affect any income support assistance?
In most circumstances, your KiwiSaver savings won't affect your eligibility for income support assistance.
However, if you withdraw your KiwiSaver savings (for example, because of significant financial hardship) this could affect your entitlement to supplementary assistance. This is because cash that has been withdrawn from the scheme would be assessed as an asset under the cash asset test.
Find out more about income support assistance on workandincome.govt.nz
Forms and guides
Check out what KiwiSaver forms and guides are available.
Date published: 14 Apr 2008
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