KiwiSaver is a long-term retirement savings scheme — access is restricted to protect you from raiding it early. But there are five legitimate ways to withdraw your KiwiSaver, and the rules are more nuanced than many people realise.
You can withdraw your KiwiSaver when: (1) you turn 65, (2) using a first home withdrawal, (3) experiencing significant financial hardship, (4) facing serious illness or permanent disability, or (5) permanently emigrating (except to Australia). Your member tax credits and employer contributions have different rules. Government contributions cannot be withdrawn on first home withdrawal.
The Five KiwiSaver Withdrawal Types
1. Retirement (Age 65)
The primary purpose of KiwiSaver is retirement savings. At 65, you can withdraw your full balance — all of it, as a lump sum, or leave it invested and draw down over time.
Key rules:
- Must have been a KiwiSaver member for at least 5 years (from 1 April 2019, this requirement applies even if you’re already 65 at joining)
- Full balance available: your contributions + employer contributions + government tax credits + investment returns
- No tax on withdrawal (KiwiSaver is a PIE — tax is paid within the fund annually)
- No obligation to withdraw — you can leave it invested indefinitely
After 65: You can continue contributing if you choose. However, employer contributions are no longer compulsory — your employer can choose whether to continue matching after you reach NZ Super eligibility age.
NZ Superannuation: NZ Super ($496/week single, $763/week couple, April 2026) begins at 65 regardless of your KiwiSaver balance. KiwiSaver is in addition to NZ Super.
2. First Home Withdrawal
KiwiSaver first home withdrawal lets you use most of your KiwiSaver balance to buy your first home.
What you can withdraw:
- ✅ Your own contributions (100%)
- ✅ Employer contributions (100%)
- ✅ Investment returns on the above
- ❌ Government member tax credits ($521.43/year top-up) — these CANNOT be withdrawn for a first home
- You must leave a minimum of $1,000 in your KiwiSaver account
Eligibility criteria:
- You have not previously owned property (or been treated as a previous owner by Kāinga Ora)
- You have been a KiwiSaver member for at least 3 years
- The property will be your principal place of residence (owner-occupied — not an investment property or rental)
- The property must be in New Zealand
- Purchase price limits: as at 2026, there are no price caps on the first home withdrawal itself (caps applied to the separate First Home Grant, which was closed in 2024)
Process:
- Get a withdrawal estimate from your KiwiSaver provider (online, 5 minutes)
- Submit a withdrawal application through your provider (you’ll need your solicitor’s trust account details)
- Funds transferred to your solicitor at settlement
Timing: Allow 10–15 working days for processing. Apply as soon as your offer is unconditional.
3. Significant Financial Hardship
If you’re experiencing genuine financial hardship and have no other means to address it, you can apply to withdraw some or all of your KiwiSaver.
What constitutes significant financial hardship (per KiwiSaver Act 2006):
- Unable to meet minimum living expenses (food, clothing, housing, utilities)
- Unable to pay mortgage — meaning you’re about to lose your home
- Suffering medical costs for a serious illness or injury (you or a dependent)
- Unable to pay for palliative care (you or a dependent)
Process:
- Apply directly to your KiwiSaver provider
- Provider assesses your application — they must be satisfied you meet the criteria
- Providers can ask for bank statements, income evidence, medical certificates
- Only the minimum necessary to relieve hardship is withdrawn
What cannot be withdrawn under hardship:
- Government member tax credits cannot be withdrawn under financial hardship
- Provider has discretion on amount
Important: The bar for hardship withdrawal is high. General debt stress or wanting to clear credit cards does not typically qualify. Genuine inability to meet basic living expenses is the standard.
4. Serious Illness or Permanent Disability
If you have a serious illness or are permanently and totally disabled, you can withdraw your full KiwiSaver balance.
Eligibility:
- Serious illness: Condition that is life-threatening, or that causes significant and ongoing functional impairment, or that requires significant ongoing medical treatment
- Permanent disability: Permanently unable to engage in work suited to your qualifications and experience
Process:
- Apply to your KiwiSaver provider with medical evidence (letter from treating doctor/specialist)
- Provider may seek independent medical assessment
- Can withdraw full balance including government contributions
5. Permanent Emigration
If you permanently emigrate from New Zealand (leave with no intention of returning), you can withdraw your KiwiSaver balance — with one major exception.
Australia exception: If you emigrate to Australia, your KiwiSaver balance must be transferred to an Australian superannuation fund — not withdrawn as cash. This is by Trans-Tasman agreement.
All other countries: After 1 year of permanent residence overseas, you can apply to withdraw your full KiwiSaver balance (including government contributions).
Process:
- Must provide evidence of permanent emigration (residency visa, foreign bank account, statutory declaration)
- Apply through your KiwiSaver provider
- 1 year waiting period after leaving NZ before withdrawal is available
What Happens to Government Contributions at Withdrawal?
The government member tax credit ($521.43/year maximum) has complex rules:
| Withdrawal type | Government contributions |
|---|---|
| Retirement (65+) | ✅ Fully withdrawable |
| First home withdrawal | ❌ Cannot withdraw — stays in KiwiSaver |
| Financial hardship | ❌ Cannot withdraw |
| Serious illness | ✅ Fully withdrawable |
| Permanent emigration | ✅ Withdrawable (except if to Australia — transferred instead) |
This is why the first home withdrawal minimum leaves $1,000 in your account — the government contributions stay invested.
Leaving KiwiSaver as a Passive Investment After 65
Many retirees leave their KiwiSaver invested after 65 and draw down as needed rather than withdrawing everything at once. Benefits:
- Continued PIE tax treatment (max 28% PIR) on returns
- Professional fund management continues
- Only withdraw what you need (avoids immediate income tax event — though PIE funds are taxed annually at PIR regardless)
- Flexible drawdown — withdraw monthly or as lump sums
Most KiwiSaver providers allow partial withdrawals after 65 without closing the account.
KiwiSaver Death — What Happens to Your Balance?
If you die before age 65, your KiwiSaver balance forms part of your estate and is distributed according to your will (or intestacy rules if no will). Beneficiaries must apply to the KiwiSaver provider and provide probate or letters of administration.
Frequently Asked Questions
Can I withdraw KiwiSaver to pay off my mortgage? Not in most cases. Financial hardship withdrawal is available if you’re about to lose your home — but general mortgage stress or wanting to pay down debt doesn’t typically qualify.
Can I use KiwiSaver for a second home or investment property? No. First home withdrawal is exclusively for your principal place of residence. You cannot use it for a holiday home, bach, or investment property.
What if I joined KiwiSaver at 62 and am now 65 but haven’t been a member for 5 years? You can still withdraw at 65 if you joined after 1 April 2019. The 5-year rule applies from the date of joining, not from age 65. Wait until you’ve been a member for 5 years before your full entitlement is available. Check with your provider.
Is my KiwiSaver balance counted for financial hardship assessment (e.g., Work and Income)? Generally: no. KiwiSaver is an exempt asset for most Work and Income benefit assessments. Consult MSD directly for your specific situation.