How to Withdraw your KiwiSaver: First home, retirement, hardship

KiwiSaver is designed to give you a financial boost for your future, you spend a lot of time adding to it but what actually happens when it’s time to withdraw? While the goal is to set yourself up for retirement, life doesn’t always follow a straight path so there are a few circumstances where you can access your funds earlier. Here’s everything you need to know about KiwiSaver withdrawals.

You can withdraw your KiwiSaver balance if you are:

• Aged 65+.
• Buying your first home.
• Experiencing significant financial hardship.
• Leaving the country permanently.
• Experiencing significant illness, and are unable to work permanently, or are experiencing a life shortening condition.
• Need to pay for funeral costs, medical treatment, or palliative care for a member, or member’s dependant family.

When you reach the age of 65, your KiwiSaver is yours to use as you wish. Before you do, it pays to have a good think about your strategy for making the money last, and perhaps seek financial advice.

There are three ways to withdraw your KiwiSaver funds:

• Regular withdrawals: for example, you could withdraw enough to live on every month. This is a great way to supplement your Superannuation payments, and ensure you don’t spend more than you should.
• Lump sum withdrawals: You could withdraw a couple years of spending money at a time, or withdraw chunks to pay for life stuff like helping your kids buy a house.
• A full withdrawal: You can also withdraw every single dollar and close the account. Just make sure you have a plan for the money if you do this.

Simply complete the retirement withdrawal form from your KiwiSaver provider. You’ll need to provide a bank deposit slip and a statutory declaration witnessed by a JP or solicitor.

Read more about how much you need to retire in NZ and how to make your money last.

This is easy. All you need to do is fill out your KiwiSaver provider’s 65+ withdrawal form and send it to your provider. You’ll need to provide a bank deposit slip verifying your bank account name and number, IRD number and a few personal details.

Note: This form includes a statutory declaration that will need to be filled out then witnessed by a solicitor, Justice of the Peace or other person authorised to take and receive statutory declarations. They will also need to verify a photocopy of your valid NZ driver’s license or passport to include with your withdrawal form.

Kernel KiwiSaver withdrawal forms age 65+

• First KiwiSaver retirement withdrawal form
• KiwiSaver retirement withdrawal form - after first withdrawal

This is one of the most common reasons for an early withdrawal. If you’ve been a member for at least three years, you can withdraw your balance (leaving a $1,000 minimum) to put toward a home or land in New Zealand.

If you’re ready to use your KiwiSaver for a home or land, the process is straightforward. Here is what you’ll need.

1. Confirm your eligibility: Check the criteria below to ensure you qualify.
2. Complete the form: Fill out a First Home Withdrawal form supplied by your KiwiSaver provider. Download Kernel KiwiSaver withdrawal form here.
3. Include your agreement: You’ll need to include a signed copy of your Sale and Purchase agreement. Note that you must be listed as an individual buyer; you cannot purchase through a business or a trust.
4. Legal verification: Your solicitor will need to complete the statutory declaration section of the form to verify your eligibility.
5. Send the form to your provider, and you’re done! Provided everything is in order, it should take between 2-15 working days for the funds to be paid.

• You’ve been a member of a KiwiSaver scheme for at least three years.
• You’ve never owned a home or land in NZ or overseas (there are exceptions to this rule, see below).
• Be buying a home or land in NZ.
• Intend to live in the home or land you’re buying (it can’t be an investment property).
• You’ve not made a first home withdrawal before.

While you can withdraw most of your savings, there are a few exceptions. You must leave a minimum of $1,000 in your account. Additionally, any funds transferred from an Australian superannuation scheme, or government contributions received while living offshore, cannot be withdrawn for a home purchase.

If you meet all of the above criteria, but you’ve owned property in New Zealand or overseas in the past, you may still be able to withdraw from your KiwiSaver to buy property, under what’s called ‘Second Chance KiwiSaver’ rules. Check out our Buying Your First Home with KiwiSaver blog for more on these rules.

If you are facing severe financial pressure, you may be able to withdraw your own and your employer's contributions. You’ll need to contact your provider and supply evidence of your situation, and your application will be assessed based on specific legal criteria.

Significant financial hardship includes when you:

• Can’t meet your minimum living expenses.
• Can’t pay the mortgage on your home and your lender is looking to enforce the mortgage (repossess and sell your home).
• Need to modify your home to meet your special needs or those of a dependant family member.
• Need to pay for medical treatment for yourself or a dependant family member.
• Have a serious illness.
• Need to pay funeral costs for a dependant family member.
• Need to pay for palliative care for yourself, or a dependant.

Your options depend on where you're headed, so it's worth understanding the rules before you make any decisions.

Moving to Australia

If you're permanently relocating to Australia, a cash withdrawal isn't an option - but you can transfer your balance to a complying Australian Super fund regulated by the Australian Prudential Regulation Authority (APRA).

It's worth pausing before you do this. If there's any chance you might return to New Zealand, transferring your funds to Australian Super means they can no longer be used for a first home withdrawal in NZ. Once transferred, those funds are treated as Australian-sourced and fall outside the KiwiSaver first home rules.

How to transfer your funds:

1. Contact your chosen Australian provider first. Check that they accept transfers from New Zealand KiwiSaver schemes, and ask them to make a formal transfer request to your current NZ provider.
2. Complete the transfer form. Fill out and return the transfer form to your KiwiSaver provider.
3. Provide supporting documents. You'll need a completed and witnessed statutory declaration, a verified copy of your NZ driver's licence or passport, and evidence of your permanent move to Australia; such as a lease agreement or employment contract.

Rest of the world

After living overseas (not including Australia) for at least one year, you can withdraw most of your KiwiSaver balance and close your account. If you prefer, you can also transfer your withdrawn funds into an overseas superannuation scheme at any time.

Before you apply, there are a couple of important things to be aware of:

• Government contributions don't travel with you. Any government contributions in your account will be returned to the Crown. What you keep is your own contributions, your employer's contributions, any interest earned, and the $1,000 kick-start payment if you received one.
• You don't have to withdraw. If you're leaving NZ but haven't decided what to do with your KiwiSaver, you can leave it where it is. Just be aware that you won't be eligible for the annual government contribution while living overseas, and your provider may continue to charge fees.

If you are experiencing a serious illness, you can apply for a full KiwiSaver withdrawal. This process requires a medical declaration from a registered practitioner.

• If you have a condition that poses a serious and imminent risk of death.
• Or, has resulted in your total and permanent inability to do your job.
• Or, lowers your life expectancy below the age of 65.

If you have a serious illness and you’ve been a member for less than two months you’ll need to apply with the IRD. Otherwise, you’ll need to apply with your provider.

Kernel KiwiSaver withdrawal form for illness

How long does a KiwiSaver withdrawal take?

While it varies by circumstance and provider, you should generally allow:

• Retirement withdrawal - 8 to 15 business days.
• First home withdrawal - 10+ business days.
• Financial hardship withdrawal - Up to 20+ business days.

I’m buying a house with another person, can we both withdraw our KiwiSaver?

Yes, if you’re buying a house together and you both meet eligibility criteria you can both withdraw your KiwiSaver to go towards the purchase.

Can I withdraw my KiwiSaver to buy a car?

Generally speaking, no. However, if you meet the threshold for withdrawal under financial hardship and you need a car to get to work, this may be possible.

Can I withdraw my KiwiSaver to pay down debt?

Generally, no. KiwiSaver is designed for long-term wealth and retirement. However, if you are experiencing significant financial hardship and a vehicle is essential for you to earn an income, or if you are facing bankruptcy, a withdrawal may be possible. In these cases, it’s best to speak directly with your provider or the NZ Insolvency and Trustee Service for guidance.

Can I withdraw my KiwiSaver if I move to Australia​?

A cash withdrawal is not permitted if you move to Australia. However, you can choose to leave your funds in New Zealand or transfer your full balance to a complying Australian super fund (APRA-regulated).

Can I use my KiwiSaver to start a business?

No. KiwiSaver funds cannot be used as business capital.

Can I gift my KiwiSaver to a family member?

KiwiSaver funds cannot be gifted to others, the only exception is if you are over 65, at which point you can withdraw your funds and use them however you choose.

Can I withdraw KiwiSaver to buy land?

Yes, if you’re building your first home and meet first home withdrawal eligibility criteria, you can withdraw your balance to go towards the purchase of the land. If you already own the land, the funds cannot go towards building a house.

Can I use my KiwiSaver first home withdrawal as a deposit?

In many cases, yes - provided you are making a conditional offer. If you are buying at auction or making an unconditional offer, you generally cannot use KiwiSaver for the immediate deposit required on the day. If you plan to use your KiwiSaver as a deposit, ensure your lawyer reviews your Sale and Purchase agreement early to make sure the timing and payment details align with KiwiSaver rules.

Kernel Wealth Limited is the manager and issuer of the Kernel KiwiSaver Plan and Kernel Funds Scheme. A Product Disclosure Statement is available at Kernel Wealth | Resources & Documents. Investing involves risk including the possible loss of principal and there is no assurance that the investment will provide positive performance over any period of time. The information provided should not be relied upon as investment advice or recommendations and should not be considered specific legal, investment or tax advice.