In most cases, your KiwiSaver savings are locked away until you become eligible for NZ Superannuation (or if you join within five years of becoming eligible for NZ Superannuation then you cannot withdraw your savings for five years). The exceptions to this include if you are buying your first home, emigrating permanently or in circumstances of serious illness or significant financial hardship. Find out more below.
- First home buyers
- Permanent emigration
- Serious illness
- Significant financial hardship
- How to apply for an early withdrawal
First home buyers
If you are a first home buyer (or second-chance home buyer) you can apply to withdraw any contributions you and your employer have made to purchase your first home if you meet all of the following requirements:
- You have been saving with KiwiSaver for three years or more
- The property will be your main home
- You have never owned a house before or you have owned a home before but are in a similar position to a first home buyer in terms of assets, income and liabilities (there are some detailed rules for these conditions); and
- You have never made a withdrawal from KiwiSaver for purchasing a home before.
You may also be eligible for a first home buyers deposit subsidy of $1,000 per year of saving with KiwiSaver, up to $5,000 in total, through Housing New Zealand Corporation (HNZC) if you meet minimum contribution levels and the eligibility criteria (including income and regional house price caps). For more information see www.hnzc.govt.nz
Permanent emigration
If you permanently emigrate you can apply to withdraw all of your KiwiSaver savings except the member tax credits. You can apply one year after your permanent emigration. In the future there may be an option to apply immediately if the funds are to be transferred to an approved foreign superannuation scheme (as yet the Government has not approved any of these).
The Government has introduced legislation to allow the trans-Tasman portability of retirement savings. When these arrangements come into effect, you will not be able to withdraw your KiwiSaver savings if you permanently emigrate to Australia. However, you will be able to transfer your KiwiSaver savings to an Australian complying superannuation scheme.
The requirements of proof of permanent emigration to Australia will be the same as permanent emigration to other countries.
Serious illness
If you are seriously ill you can apply to withdraw all of your KiwiSaver savings. You can make a serious illness application if you have an illness, injury or disability that:
- Means you are totally and permanently unable to work in a job suited to your education, experience or training, or
- Poses a serious risk of death in the short-term.
Significant financial hardship
You can apply to withdraw your KiwiSaver savings less the Government's kick-start contribution and member tax credits for reasons of significant financial hardship. The amount you are allowed to withdraw will be limited to the amount required to alleviate the financial hardship.
How to apply for an early withdrawal
To make an early withdrawal application, you need to complete and return a Withdrawal Form. You can obtain a Withdrawal Form by contacting us on 0800 ASB RETIRE (0800 272 738) or retire@asb.co.nz (we will provide the appropriate withdrawal form for your situation). You may be required to provide supporting information for your application and if the withdrawal is for a first (or second-chance) home purchase your solicitor will also need to provide some information and documents.