Kiwisaver withdrawal rules: A complete guide

• To buy your first home. 

• When you reach the NZ retirement age of 65. 

• To buy your second or subsequent home in some limited circumstances. 

• If you’re moving to a new country for good. 

• If there are extenuating circumstances like financial hardship, serious illness or death. 

Congratulations! When you’re ready to buy your first home you may be able to withdraw your Kiwisaver balance – to be eligible you must:

• Be buying a home or piece of land in NZ. 

• Be buying your first home or piece of land. 

• Have never withdrawn funds from Kiwisaver to buy property. 

• Plan to live in the home you buy for at least six months. 

• Have been with Kiwisaver for at least three years. 

You’ll need to leave at least $1,000 in your account and tick a few other boxes when withdrawing. Read more about Kiwisaver first home withdrawal rules. 

When you hit 65 – woohoo! – you’re eligible to withdraw your entire Kiwisaver fund, with a few exceptions. To withdraw your balance you need to contact your Kiwisaver provider and they’ll set the process in motion, but before that you have a few options to consider:

If you withdraw all of your Kiwisaver you need to be mindful that, if you’re no longer working, this money may need to last you for the rest of your life. It’s a good idea to speak to a financial advisor to discuss a way to make your money work for you via investments. 

You could withdraw a lump sum from your Kiwisaver to serve a purpose such as paying off your mortgage, paying off other high interest debts or treating yourself to a holiday. Once again, it’s important to make sure you speak to a financial advisor to make sure your balance can continue to support your lifestyle post-retirement.  

It may be a good idea to leave your Kiwisaver balance in your account indefinitely instead of withdrawing it right away. You could, instead, withdraw a small amount regularly to cover your living expenses, while the rest stays in your account earning a return. If you’re interested in this strategy, speak to a financial advisor and Google the 4% rule.

In some limited circumstances Kiwisaver withdrawal rules may allow you to withdraw your balance if you’re purchasing your second or subsequent home. That is as long as you:

• Meet the regular eligibility requirements for a Kiwisaver first home withdrawal. 

• Don’t have any sellable assets worth more than 20% of the house price cap for an existing home in the area you’re looking for. 

You’ll need to make two applications for a Second Chance withdrawal. One to Kāinga Ora and one to your Kiwisaver provider. 

Read more about withdrawing your Kiwisaver to buy a second home. 

Planning to move overseas permanently? You may be able to transfer your Kiwisaver to an approved scheme in the country that you’re moving to, but (surprise, surprise) there are a bunch of rules that govern this. 

You can transfer your balance to an Australian complying super scheme, but it’s important that you first check that your scheme will facilitate the transfer (not all do). 

You’ll need to wait a year before you can transfer your Kiwisaver balance over. You’ll also need to leave your government contributions, and money you previously transferred over from an Australian super fund. 

At the age of 60+ you can withdraw any funds you transferred to Kiwisaver from an Australian super fund. 

Life happens – when it gets hard, you may be able to withdraw your Kiwisaver to get through. Here are a few examples:

1. Financial hardship: if you’re having a tough time with money you may be able to withdraw your Kiwisaver balance. For example, if you can’t cover minimum living expenses such as your mortgage or rent.

1. Sickness: if you’re severely ill or have a life shortening condition you may be able to withdraw money to help cover lost income or medical treatment. This will depend on medical evidence provided by a professional. 

1. Death: if you die, your Kiwisaver will generally be paid to your estate. You may also be able to withdraw a portion of your balance to cover the costs of funerals for immediate family. 

If you think you qualify under these circumstances, it’s a good idea to speak to a financial advisor or your Kiwisaver provider. They’ll help you submit all the necessary forms and ensure they’re correctly completed. 

If you withdraw from your Kiwisaver early it may severely reduce your retirement savings. Before you withdraw, for any reason, it’s important that you understand the impact that it could have on your balance – as well as how that may affect your retirement.