Withdrawal options
KiwiSaver is about saving for your retirement, but there are other times when you might be able to access your savings. There are several withdrawal options within KiwiSaver.
It could be that you are moving overseas; you may need make a withdrawal due to a life-shortening congenital condition or serious illness; you may be arranging a withdrawal on behalf of someone who has died; you may need to withdraw from KiwiSaver due to financial hardship. There are also options to withdraw from KiwiSaver to purchase your first home. In some circumstances, a court may order that we pay money out of your account.
Withdrawals
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Happy Birthday! The Government currently sets the qualifying age for New Zealand superannuation at 65, and that’s when you can withdraw your KiwiSaver.
You can make a one-off full or partial withdrawal, or set up regular withdrawals from your KiwiSaver account.
Any withdrawal you make from the Summer KiwiSaver scheme will be tax free. You do not have to withdraw, and it’s fine if you’d like to remain a member of the Summer KiwiSaver scheme so that your money can work alongside any other investment arrangements you have.
You can continue to make contributions to KiwiSaver after you are eligible to withdraw, although your employer is not obliged to continue with their contributions, and you are no longer eligible to receive the Government contribution.
To stop making employee contributions once you become eligible to withdraw from your KiwiSaver account, you will need to complete a KiwiSaver Non-deduction notice (KS51 form) and give this to your employer.
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If you meet the criteria, simply complete a withdrawal form, suppling this with proof of your nominated bank account. We will arrange to make a payment to your bank account once your withdrawal is approved. When processing a withdrawal, PIE tax is deducted according to your prescribed investor rate (PIR). You can find more out about tax here and you can check the current PIR that we hold on your account by logging into your account and going to My Profile.
From acceptance of your application to withdraw, you should allow up to ten business days for your withdrawal to be paid.
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Sometimes people leave this beautiful country. If you are emigrating permanently to anywhere other than Australia, once the withdrawal is approved, you can transfer your KiwiSaver account balance as a cash payment once you have been away for more than 12 months. This includes your contributions, employer contributions and the Government kick-start* (if received), however it excludes any Government contributions and amounts transferred from an Australian complying superannuation scheme.
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If you’ve made a withdrawal from your Summer KiwiSaver scheme account before, and would like to make another withdrawal to be paid into the same bank account, email info@summer.co.nz with the amount you wish to withdraw. This email should come from the email address associated with your Summer KiwiSaver scheme account. If you are unsure of the email address linked to your account, simply log in and select "My Profile" under the "Manage my account" section or contact us.
From acceptance of your application to withdraw, you should allow up to ten business days for your withdrawal to be paid.
If you want your subsequent withdrawal to be paid to a different bank account than your first withdrawal please complete a subsequent withdrawal form.
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Trans-Tasman portability is an important feature of KiwiSaver. You can’t receive a cash payment, if you permanently emigrate, but we can transfer your Summer KiwiSaver Scheme balance to an approved Australian complying superannuation fund for you. Find out more about Australian transfers.
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You can apply to withdraw any amount, up to the value of your account, from your KiwiSaver account due to serious illness. A decision on this withdrawal is made by the supervisor of your KiwiSaver scheme, and you’ll need to provide medical evidence.
Serious illness is defined as an injury, illness or disability that:
- Results in you being totally and permanently unable to engage in work for which you are suited by reason of experience, education or training or any combination of those things; or
- Poses a serious and imminent risk of death
To make an application for a serious illness withdrawal complete the withdrawal form and return it to us, or contact us and we can assist you.
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You can apply to withdraw any amount, up to the value of your account, from your KiwiSaver account if you suffer from a life-shortening congenital condition.
Life-shortening congenital condition means a condition that exists for a person from the date of their birth and is likely to reduce their life expectancy, or persons generally with the condition, below the New Zealand superannuation qualification age.
If you make a life-shortening congenital condition withdrawal you may continue to make contributions to the Scheme but you will no longer be eligible for Government contributions or compulsory employer contributions.
What is a life shortening congenital illness?
The Government has identified the following conditions ('listed conditions') that qualify as life-shortening congenital conditions:
- Down syndrome (Down’s syndrome)
- cerebral palsy
- Huntington’s disease (Huntington’s chorea)
- fetal alcohol spectrum disorder.
You may make a life-shortening congenital condition withdrawal if you have a condition that meets the definition above, i.e. a condition that exists for a person from the date of their birth and is likely to reduce the life expectancy of that person, or for persons generally with the condition, below the New Zealand superannuation qualification age.
To make an application for a life shortening congenital illness withdrawal please complete the withdrawal form, or contact us for assistance.
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In the event of death, the balance of your KiwiSaver account will be paid in full to the executors or administrators of your estate.
If the balance of your account is below the prescribed amount (which is currently $40,000) and meets other requirements, we may be able to pay it direct to a surviving partner, caregiver, or other approved recipient.
To make arrangements for a withdrawal due to a death complete and return the withdrawal form or contact us and we can assist you.