Withdrawing your KiwiSaver money
You can withdraw your KiwiSaver savings at the following times. Any withdrawals from your KiwiSaver account are tax-free.
1. When you reach the age of eligibility for New Zealand Superannuation.
This is currently age 65. At this time, depending on your financial situation, you may choose to withdraw your funds, or leave them invested in KiwiSaver. The decision that you make will depend on your goals and objectives and need for the funds. As part of our clients financial planning, Moneyworks assists our clients with making this decision.
2. When you purchase your first home.
After you have been a member of KiwiSaver for three years, you may be able to withdraw your KiwiSaver balance (less $1,000 and any Australian Superannuation transfers), ($1,000 must remain in your account), towards the purchase of your first home. These funds are paid to your lawyer towards the house purchase price, and can be to purchase and existing house, or land to build a house on that you are going to live in.
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Some previous house buyers may also be eligible to withdraw their funds. Housing New Zealand determine the eligibility of previous home owners as to whether they can withdraw their KiwiSaver funds. In addition to the above criteria, a previous house owner cannot have realisable assets totalling more than 20% of the house price cap for the area that they are buying in.
You may also be able to use a Welcome Home Loan to assist you with purchasing your home.
For more information, make sure you are familiar with the rules, which are outlined at Housing New Zealand. Click on the button below and it will take you there.
3. Accessing KiwiSaver if you move overseas permanently.
You can withdraw most of your funds in your KiwiSaver account if you move to a country other than Australia, and you have lived overseas for one year or more.
You can access your contributions, your employers’ contributions and earnings on these contributions. You can also access the $1,000 kickstart from the Government. However, you cannot withdraw the Member Tax Credits. These are returned to the Government when you withdraw your funds. The $1,000 kickstart payment for new KiwiSaver members ended on 21st May 2015.
The process for accessing these funds is administrative. For more information, review the information on the official KiwiSaver site by clicking on the orange button below.
4. Accessing KiwiSaver if you have significant financial hardship.
If you can provide evidence that you’re suffering significant financial hardship, you may be able to withdraw some of your KiwiSaver savings.
Significant financial hardship includes if you’re:
unable to meet minimum living expenses
unable to meet mortgage repayments on the home you live in, resulting in your mortgage provider enforcing the mortgage on your property
modifying your home to meet special needs because of 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.
You can only access your own contributions and your employer contributions and the earnings on these contributions. You cannot withdraw the Government kickstart if you received it (it was paid to new members until 21st May 2015) or member tax contributions.
The process for withdrawing this money is administrative. For more information, review the information on the official KiwiSaver site.
5. How to claim money from KiwiSaver if you suffer a serious illness.
You may be able to claim money from your KiwiSaver savings early if you have an illness, injury or disability that either permanently affects your ability to work or poses a risk of death. You may need to provide medical evidence to support your application.
Under this withdrawal option, you can withdraw all the money in your account.
The process for withdrawing this money is administrative. For more information, review the information on the official KiwiSaver site by clicking on this button.
Moneyworks NZ Ltd
P: 0800 225 621
E: contact@moneyworks.co.nz
P O Box 1003, Cambridge 3450
Licensed Financial Advice Provider - FSP 15281
Regulatory Information: Moneyworks is a Licensed Financial Advice Provider (FSP15281), and AML Reporting Entity and is supervised by the Financial Markets Authority.