Withdrawing Funds
As the main purpose of the KiwiSaver fund is for retirement savings, money can be withdrawn from the fund at the age at which the person is eligible for government superannuation, currently 65, or after five years, whichever is longer.
However money can be withdrawn before retirement in a number of circumstances which are outlined in Schedule 1 (KiwiSaver scheme rules), of the KiwiSaver Act 2006.
- After three years contributions can be withdrawn to buy the first home. This excludes the government kickstart of $1000 and the tax credits.
- In the event of significant financial hardship, excluding the government $1000 kickstart and tax credits.
- In the event of serious illness.
- If a person permanently emigrates from New Zealand. This excludes the government tax credit.
- Divorce or the end of a de facto marriage longer than 3 years (less if there are children). A person may make a claim on their ex-partner's KiwiSaver account. (Rule 7)
- Bankruptcy. Creditors can go after bankrupts' KiwiSaver savings. (Rule 7)
- Death. KiwiSaver savings are distributed as part of the person's estate.
Read more about this topic: Kiwi Saver
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