Sometimes you may want to take a break from saving.
As an employee you may apply to Inland Revenue for a contributions holiday, which allows you to put your contributions on hold. When this happens your employer will stop deducting KiwiSaver contributions from your pay.
If you have been contributing for 12 months or more, you can apply. A contributions holiday is for a minimum of three months (unless your employer agrees otherwise), and a maximum of five years.
The Bill before Parliament proposes reducing the maximum to 1 year.
While you are on a contributions holiday, your employer does not need to make contributions. You can make voluntary contributions at any time during the contributions holiday period.
You can stop and start your contributions holiday by notifying your employer. However, unless your employer agrees, you cannot take a contributions holiday for less than three months.
You can apply for an early contribution holiday within the first 12 months of becoming a KiwiSaver member if you are experiencing or likely to experience financial hardship. This will be for a three month period, unless Inland Revenue agrees to a longer period.