Money Compare shares the ways you can use your KiwiSaver savings!
KiwiSaver is an awesome investment program that allows Kiwis to contribute a portion of their income into a long-term growing fund. The account is typically locked, and there are few ways you can request to withdraw it. But keeping it locked, and growing away in the background means that you will get to reap the benefits of your efforts in the future. You will be able to thank your past self!
There are generally three situations in which you can withdraw from your KiwiSaver:
- Retirement: When you reach retirement, specially the qualifying age of 65, you can withdraw some or all of your KiwiSaver savings.
- First Home: If you are eligible, you can withdraw your KiwiSaver savings to purchase your first home.
- Hardship: In certain circumstances, such as financial hardship, or serious illness, you may be able to withdraw your KiwiSaver savings.
KiwiSaver for Retirement
When you reach retirement age of 65, you can withdraw your KiwiSaver in 3 ways.
- Regular payments: You can choose to pay yourself in regular payments such as monthly or fortnightly.
- Partial: Withdraw a lump sum only when you want to.
- Full: Withdraw the full balance and close your KiwiSaver account.
You may want to consider not withdrawing the entire balance of your KiwiSaver at once, because by keeping some funds in, you can still enjoy returns into your retirement years. Choose to take what you need, through regular or partial withdrawals and you’ll continue to reap those benefits!
KiwiSaver for First Home Buyers
You can use your KiwiSaver to buy your first home, if eligible. If you have been contributing to your KiwiSaver account for three years, and meet eligibility requirements, the KiwiSaver funds can be used to pay for your first home deposit. You must be intending to live in the house and you cannot withdraw your KiwiSaver for investment property.
How Do I Use KiwiSaver to Buy a Home?
KiwiSaver for Hardship
There are very specific circumstances in which you can withdraw your KiwiSaver except for retirement and first home buying. This should only be considered as a last resort when other options have been exhausted. These are some situations where you can withdraw your funds.
- Financial Hardship: If you are experiencing significant financial hardship, you may be eligible to withdraw your KiwiSaver.
- Serious Illness: If you fall ill, and lose your income, you may be able to withdraw your KiwiSaver savings to help cover some lost income and medical treatment.
- Passing Away: If you pass away, your KiwiSaver funds will either be paid to your estate, or the bank account of a permitted person such as a partner or family member.
Get a KiwiSaver Health Check
Our friends at National Capital can help you with a KiwiSaver health check, to make sure your KiwiSaver is set up in a way that will help you meet your financial goals.