Our national KiwiSaver initiative has been a great success, with nearly 2 million New Zealanders enrolled. Some might say KiwiSaver has contributed to better saving habits for all New Zealanders in a crucial time of fiscal restraint.
The 5 year milestone will be eagerly awaited by baby boomers – many of whom are now eligible to withdraw from their golden nest egg.
Are you eligible to withdraw your funds? You must fit two criteria:
- You must be at least 65 years old, i.e. qualify for NZ Superannuation.
- You must have been enrolled in KiwiSaver for 5 years.
If you joined KiwiSaver when you were 63, then you won’t be eligible to access your funds until 5 years after, when you’ll be 68.
How to withdraw your savings: First, contact your scheme provider to confirm you’re eligible. If you’re unsure who this is, contact IRD (have your IRD number ready).
Your provider will explain the withdrawal process and timeframes involved. This will vary, depending on your provider and the funds/assets portfolios your money is invested in. They can also tell you what your savings are worth.
Note: You can contact your scheme provider to discuss the withdrawal application process and relevant timeframes ahead of meeting both criteria.
It might be a good idea to ensure you have the required paperwork ready.
Upon becoming eligible you may wish to leave your account open and continue contributing to it.
Are you an employer with an eligible employee? Provided you’re not required to under an employment agreement, you’re no longer liable to pay compulsory employer contributions for employees eligible to withdraw from their KiwiSaver funds.