Withdrawing Your KiwiSaver Funds

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.

You may also be eligible for a first home grant.  This will depend on a number of factors including:
  1. How long you have been contributing to KiwiSaver (of at least the minimum allowable percentage of your total income).  If you are a non-earner, there are specific rules about hoe much you must contribute, based on the minimum adult wage for a 40 hour week.
  2. What your income is when you purchase your first home
  3. What the value of your house is (this depends on the location of the house you are purchasing.)
  4. You have to be aged 18 or over.

This grant provides $1,000 a year for each year that an eligible person has been a contributing member of KiwiSaver, to a maximum of $5,000.  From 1st April 2015 these subsidies will double to $2,000 a year with a maximum of $10,000 if you are building a first home.

Some previous house buyers may also be eligible to withdraw their funds and for the first home grant. Housing New Zealand determine the eligibility of previous home owners for both the grant and 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 these funds is administrative.  For more information, review the information on the official KiwiSaver site by clicking on this orange button.

5. How to claim funds from KiwiSaver if you suffer a serious illness.

You may be able to claim funds 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 funds in your account.

The process for withdrawing these funds is administrative.  For more information, review the information on the official KiwiSaver site by clicking on this button.

Romance Scams and how to avoid them

There was a recent article in the New Zealand Herald (premium subscription) headed up ‘Catfished: Kiwi loses $840,000 to online romance scams’. This was the largest reported loss in a long termRead more

Ethical Investing and New Zealanders opinions

very year Mindful Money – the New Zealand charitable trust created to help people monitor the ethical allocations of their New Zealand investments and RIAA (the Responsible Investment AssociationRead more

Buying a property at auction - a personal experience

Call me old…. But I haven’t been involved with the purchase of a property for nearly 20 years.  Peter and I built our dream home in Cambridge, and loved the process, and sold our properties inRead more

More financial scams about - BEWARE

This information is from the FInancial Markets Authority - and we are repeating the message in case we can save at least one person from being caught in a financial scam.  PLEASE pay attention to thRead more

Three big changes in a post-pandemic world

This information is copied from a recent Fortune magazine newsletter that we received.  Given that 2020 has been a big year, we thought we would share the information with you - as an indicator asRead more

Generate KiwiSaver actively engaging in 'impact investing'

Moving towards an 'ethical approach to investment' for those of our clients that want this approach means that we are talking to our existing and future fund managers about how they are investing,Read more

The Six Stages of Ethical Investment Awareness

At Moneyworks, we are undertaking our international certification and education to become 'ethical/responsible/sustainable' advisers.  Part of this is understanding the different 'claims' to ethicalRead more

The purpose of New Zealand's retirement income system

New Zealand Superannuation is a cornerstone to the retirement income system in New Zealand, and as we often say in our seminars, it is one of the most generous public pension schemes in the westernRead more

What is the ideal age to retire?

Obviously the ideal age to retire is when you are ready, and retirement doesn’t need to mean sitting around all day doing nothing.  Your retirement might involve spending more time with your famiRead more

What is a typical lifespan in New Zealand today?

Answer: Much longer than it used to be!  What does this mean for your retirement planning?  The current life expectancy in New Zealand is 82.21 years And interestingly, while the lifespan in NewRead more

3 Psychological tricks to help you save money

We have heard from people that with Covid lockdowns (and the lack of travel opportunities overseas) that they have more money in the bank.  Of course, we don’t want to have another lockdown. ARead more

Stolen or hacked credit cards – a hassle, but what is the real story about how much it costs?

Over the last four months quite a few of our clients have had their credit cards stolen or hacked.  While there are some protections provided for your funds through your bank when your credit cardRead more
 

This product has been added to your cart

CHECKOUT