KiwiSaver is an investment scheme set up by the New Zealand Government to help Kiwis save for retirement. For most people, this means you won’t be able to access your money until you reach retirement age (currently 65 years). While withdrawals for a first home purchase are a common exception, it’s important to remember that retirement is the primary purpose of KiwiSaver. Other types of withdrawals have specific requirements and may not always be approved by our supervisor, Public Trust.
In this article, we’ll cover how to get your KiwiSaver money, explain the withdrawal process, and outline who approves your application. There are several types of KiwiSaver withdrawals in New Zealand, each designed for specific purposes. Let’s break them down:
Regular withdrawals
1. First Home Withdrawal
When: After at least 3 years of being a KiwiSaver member.
Purpose: To buy your first home or land to build on.
How: You can withdraw everything except $1,000, which must remain in your account. If you have transferred an Aussie Super to your account this portion of funds remains locked in until you retire.
Find out more about First Home Withdrawals here.
2. Retirement Withdrawal
When: From age 65.
Purpose: Use your savings for retirement.
How: Withdraw as a lump sum, set up regular withdrawals, or leave your funds invested and withdraw as needed.
Find out more about Retirement Withdrawals here.
Special circumstances withdrawals
3. Significant Financial Hardship Withdrawal
When: You may be eligible to withdraw some of your KiwiSaver savings early if you can provide evidence that you’re suffering significant financial hardship, and have exhausted all other reasonable alternative sources of funds.
Purpose: The purpose of the withdrawal is to help you cover any shortfall for your minimum living expenses for three months and/or to pay any overdue bills or arrears.
Before you apply
KiwiSaver is designed to help you save for your retirement, so your savings are generally locked in until you reach age 65.
Before applying for a hardship withdrawal, you need to:
- Talk to your bank about how they may be able to assist, for example by restructuring loans or mortgages
- Talk to Work and Income New Zealand (WINZ) who may be able to offer financial support.
As part of your application, you’ll need to confirm you have exhausted all other reasonable alternative sources of funding. For example:
- Used any savings you have
- Cashed in any investments or shares you have
You might also like to use free budgeting services in your area provided by the Citizen’s Advice Bureau (CAB).
How: Submit an application with evidence of your financial hardship. Significant Financial Hardship Withdrawals are not guaranteed. The decision to approve a KiwiSaver Significant Financial Hardship withdrawal is not made by Generate, but instead our Scheme Supervisor, Public Trust, based on what they believe is required to relieve your hardship.
4. Serious Illness Withdrawal
When: If you're diagnosed with a serious illness or disability preventing you from working or reducing your life expectancy. These can be either:
- an illness, injury or disability that results in you totally and permanently being unable to return to work
- an illness, injury or disability that poses a serious and imminent risk of death
Purpose: Access your KiwiSaver account to manage healthcare-related costs or early access due to being terminally ill.
How: If you meet the criteria above you can download, complete and return a Serious Illness Withdrawal application form with the necessary documentation to start the process.
Please note that submitting the form does not guarantee that it will be approved.
The criteria for a withdrawal on the grounds of Serious Illness are explicit as per the KiwiSaver Act 2006. We encourage you to call us on 0800 855 322 to discuss your situation if you are unsure, or if you have a specific query related to a condition that does not clearly meet the criteria. Please remember that the decision to approve a KiwiSaver serious illness withdrawal is not made by Generate, but instead our Scheme Supervisor, Public Trust.
5. Permanent Emigration Withdrawal
When: If you’ve permanently emigrated and have been living overseas (excluding Australia) for at least 12 months.
If you move permanently to Australia, you can transfer your KiwiSaver savings to an Australian Superannuation Scheme – or you can leave your funds in your KiwiSaver account to continue being invested. You cannot get your KiwiSaver savings paid into a bank account.
Purpose: You can withdraw most of your savings early if you have moved overseas. You will be able to withdraw your contributions, your employer’s contributions, the $1000 Kick start (if you got it) however any Government contributions will be returned to the IRD.
How: If you meet the criteria you can download, complete and return the Permanent Emigration Withdrawal application form with the necessary documentation to start the process.
Once all supporting documentation is received and your application is approved, it can take up to 15 days for the funds to be transferred into either your nominated bank account, or Australian Superannuation Scheme.
6. Withdrawal Due to Death
When: In the event of a member’s passing.
Purpose: Funds are paid to the member's estate.
How: the Executor or administrator of the estate will need to apply to Generate with the appropriate documentation. You can find the application form here.
7. Life-Shortening Congenital Condition Withdrawal
When: Available if you were born with a life-shortening condition that is expected to reduce your life expectancy below the NZ Superannuation age (currently age 65).
Purpose: To allow you the ability to take advantage of your savings when you want if you were born with a condition that lowers your life expectancy.
How: The KiwiSaver Act lists four congenital conditions that can be considered under this withdrawal type. These are: Down Syndrome, Cerebral Palsy, Huntington’s Disease and Fetal Alcohol Spectrum Disorder. Other conditions not listed can also be considered provided that it existed since birth, is a life-shortening condition and medical evidence can be provided.
It's important to note that if you make a withdrawal under this withdrawal type, you will be treated as if you have reached the New Zealand Superannuation qualification age, and you will no longer be entitled to Government contributions or compulsory employer contributions. It’s also important to check whether a withdrawal might hinder your eligibility for social assistance or any other form of government assistance. Give the team a call on 0800 855 322 for more information.
Accessing your KiwiSaver savings depends on meeting specific requirements, whether it’s for retirement, buying your first home, or exceptional circumstances like financial hardship or serious illness. KiwiSaver was designed to help New Zealanders save for retirement, so withdrawals outside this purpose are subject to strict criteria and require approval from our scheme supervisor, Public Trust.
Each withdrawal type has specific eligibility criteria, required documentation, and conditions. If you're applying for a KiwiSaver withdrawal with Generate, the process is simple and convenient. You can also use our mobile app to submit your application for most withdrawal types —just take a photo of your documents and follow the instructions to upload them.
Note: Financial Hardship and Life-Shortening Congenital Condition Withdrawals cannot be applied for via the Generate app. Please contact us via email to apply for these.
For more information or assistance on how to get your KiwiSaver money, contact us today.