KiwiSaver is a key part of financial planning for many New Zealanders. While it’s primarily designed to help you save for retirement, it can also be used to buy your first home or access funds during hardship. At Patel Nand Legal, we regularly assist clients with KiwiSaver-related matters, especially when property transactions are involved.
What Is KiwiSaver
KiwiSaver is a voluntary savings scheme supported by contributions from you (the employee), your employer (minimum 3%), and the government (up to $521.43 annually if eligible). Your KiwiSaver funds are invested by your chosen provider and grow over time to support your long-term financial goals.
Using KiwiSaver for Retirement
You can access your KiwiSaver funds once you turn 65. If you joined before July 2019, a five-year membership rule may apply unless you opt out of that lock-in period. Withdrawal options include full withdrawal, regular payments, or partial lump sums. Many retirees choose to keep their funds invested and withdraw only what they need.
Using KiwiSaver to Buy Your First Home
If you’ve been a KiwiSaver member for at least three years, you may be eligible to withdraw most of your savings to help buy your first home. You must be buying a home or land in New Zealand, intend to live in the property, and leave at least $1,000 in your KiwiSaver account. You may also qualify for the First Home Grant, which can provide up to $10,000 for eligible buyers.
Using KiwiSaver for a Second Home Purchase
While KiwiSaver is generally intended for first home buyers, there are limited circumstances where you may be able to use it again if you're purchasing a home and have previously owned property. This is known as second-chance eligibility and is assessed by Kāinga Ora. You may qualify if you no longer own any property and your financial situation is similar to that of a first home buyer. If approved, you can use your KiwiSaver funds as if you were a first-time buyer.
Accessing KiwiSaver Due to Financial Hardship
If you're facing serious financial difficulty, you may be able to apply for a partial withdrawal of your KiwiSaver funds. This could include difficulty meeting basic living costs, mortgage arrears, or medical and funeral expenses. Approval is subject to strict criteria and supporting documentation.
Early Withdrawal for Serious Illness
If you’re diagnosed with a serious illness that affects your ability to work or shortens your life expectancy, you may be eligible to withdraw your full KiwiSaver balance early. This requires medical documentation and approval from your provider.
Moving Overseas
If you permanently move overseas (excluding Australia), you can apply to withdraw your KiwiSaver funds after one year. If you move to Australia, your KiwiSaver can be transferred to an approved Australian superannuation scheme.
Opting Out of KiwiSaver
If you’ve been automatically enrolled into KiwiSaver when starting a new job, you have a limited window to opt out. You can opt out between day 14 and day 56 of starting your job by completing a KiwiSaver opt-out request form (KS10). If successful, any contributions deducted from your pay will be refunded. Late opt-outs may be considered within three months under specific circumstances. If you joined KiwiSaver voluntarily, you cannot opt out later, but you may apply for a savings suspension to temporarily stop contributions.
Legal Considerations When Using KiwiSaver
At Patel Nand Legal, we assist clients with property transactions involving KiwiSaver withdrawals, verifying eligibility for first home grants or second-chance applications, reviewing sale and purchase agreements, and advising on hardship and opt-out applications. Getting legal advice ensures your KiwiSaver is used correctly and efficiently—especially when buying property or applying for early access.
Need Help with Your KiwiSaver?
Whether you're buying your first home, applying for second-chance eligibility, or planning for retirement, our team at Patel Nand Legal is here to help. We offer expert legal advice tailored to your situation and can guide you through the KiwiSaver process with confidence. Contact us today to book a consultation.
