At the moment, money is tight! Inflation is at an all-time high, groceries are costing a fortune, and interest rates are rising. Many Kiwis are likely feeling the pinch.
So, you may be staring at your KiwiSaver balance thinking…can I take out some of those funds?
You can! Well, technically. There are a few ways that you may be able to access your KiwiSaver funds.
Read on to learn more about them AND the best way that you can save money during these difficult times!
Can I access my KiwiSaver funds?
KiwiSaver is an investment plan that is designed for Kiwis to save money for retirement. However, there are some cases where you can withdraw your KiwiSaver funds.
It should be noted that the criteria for each category is very strict. Even if you apply, you may be denied access to your funds. Think of this as your last option!
Anyhow, let’s dive into each of the different ways that you can access your KiwiSaver funds!
Unable to make ends meet
If you’re facing financial hardship then you may be able to withdraw funds from your KiwiSaver.
If you can’t pay your weekly expenses, can’t meet your home loan repayments (and action is being taken against you), a serious injury or illness is causing financial pressure or you have to cover funeral costs for a close family member, then you may be eligible to access your KiwiSaver funds.
The eligibility requirements are very strict and there is a high chance that your request won’t be accepted. If you are approved, you may only be given access to some of your funds- however much is required to cover your current financial burdens.
Just remember that taking out money from your KiwiSaver will impact your financial position in the future. So really you’re only putting off the problem to a later date!
If you want some other ways you can reduce your financial pressures, read this!
A serious injury or illness
If you have suffered a major injury or illness, you could be entitled to your KiwiSaver funds.
However, it has to be serious enough to have caused you to be unable to work permanently. You’ll need to provide medical proof and declaration from your doctor.
In the case that your claim is accepted, you may be able to withdraw all your funds. The exact amount you can withdraw will be decided by your provider.
First home buyers
You can withdraw your KiwiSaver funds for a deposit on your first home, as long as you meet the specific requirements.
If you’re planning on using your funds for your first home, the best thing to do is make sure you are in the right KiwiSaver fund. Generally, it’s better to be in a lower-risk fund. This will protect you if there are changes in the market since your balance will not change dramatically. This helps when estimating how much money you’ll have for your deposit.
The recent volatility in the market is a great reminder to check you’re in the right KiwiSaver fund. If you’ve seen your balance drop recently, don’t stress! Read this!
When it comes to using your KiwiSaver funds for your first home deposit, here’s 3 things to remember:
1). A lawyer is required. They will receive your KiwiSaver funds then transfer them to you. The withdrawal process can take longer than a week, so plan to have this sorted well in advance of the settlement date.
2). You have to notify your provider. You need to provide them with proof of your purchase of the property and documents from your lawyer so they can deposit your funds to them.
3). You can withdraw all your funds from your KiwiSaver, except for $1,000, which must remain in your account.
Moving overseas
Are you leaving Aotearoa and going to live overseas permanently? Then you can take your KiwiSaver with you!
After you’ve lived overseas for 1 year, you’ll be able to apply to withdraw your KiwiSaver funds.
If you’re moving to Australia, it’s a slightly different process. You can either have your funds transferred over to an Australian superannuation scheme or keep your funds in your KiwiSaver and allow them to grow.
If you’re heading overseas, you’ll be able to take the majority of your KiwiSaver funds. However, you won’t be able to keep the government contributions.
Retirement is here!
You’ve reached retirement age! Now that you’re 65, you can withdraw all your KiwiSaver funds.
You can either take out a lump-sum withdrawal of all your funds or arrange regular withdrawals so you have consistent money coming in. Also, you can instead keep contributing to your KiwiSaver and withdraw your funds at a later date.
Confused about KiwiSaver?
We understand that navigating your KiwiSaver can be super confusing!
That’s why we recommend talking to a financial advisor! Luckily for you, the good folks over at National Capital are experts when it comes to KiwiSaver.
To get started, complete their free KiwiSaver HealthCheck!
If you want more advice on the best ways to maximise your KiwiSaver, then click here!
Use Money Compare!
Need to relieve your financial pressures at home but can’t access your KiwiSaver funds? Then we’ve got the best solution for you!
At Money Compare, you can compare all your financial plans! This includes your home loan, car insurance, personal loans and much more.
You’ll save heaps of money AND find the perfect plan that meets your needs!
Best of all, it’s super easy to use! Just jump on our website, enter in a few details, select filters that match your preferences and then you’ll see all the plans available to you. Then you can compare them all side-by-side on one page!
It couldn’t be simpler!
So jump onto Money Compare to discover massive savings on all your financial bills!
*This is an educational guide only. It is in no means specific financial advice. Please consult a professional financial advisor (like the ones at National Capital) for any specific financial advice you may require.*
