KiwiSaver reached its five-year anniversary on July 1, 2012 and you may now be eligible to withdraw your funds.
You may withdraw funds from KiwiSaver when you either qualify for New Zealand Superannuation (currently at age 65) or reach the date of your fifth anniversary of membership whichever is later.
For example, if you joined KiwiSaver aged 63, you will not be eligible to withdraw until after five years, when you turn 68.
We recommend that you check your ‘start date’ with your scheme provider and ensure that they have your correct date of birth and contact details.
If you do not know who your scheme provider is, you can call us on 0800-549 472. Please ensure you have your IRD number handy.
If you are eligible, talk to your scheme provider for information on withdrawing your savings. The withdrawal process and timeframes will vary between schemes and providers and hence it is important that you get the right information.
You should ask your scheme provider how quickly the funds/asset portfolios invested by them can be cashed and how quickly withdrawal applications can be processed. These can differ from scheme to scheme.
Your scheme provider will be able to advise you of the withdrawal application process, the timeframes, and to ensure that you get any paperwork that may be required.
Your scheme provider will have the requisite withdrawal application details and forms. If you have an automatic payment set up, this should be stopped.
Once you become eligible, you do not have to withdraw your savings. You can leave your account open and continue to make payments as you are now.
If you are an employer, you can cease making compulsory employer contributions when an employee reaches his or her withdrawal eligibility date.
We advise employees to update their employers of their eligibility so that payments can cease on the correct date to avoid overpayment.
Please ensure that all contributions are up-to-date and make required payments to us as soon as possible.
If you are in business, you may like to attend one of our free tax seminars or workshops held in various parts of the country.
Visit www.ird.govt.nz and enter the search term ‘Seminars.’
Abdul Rafik is Inland Revenue’s Community Relationships Advisor based in Auckland. He will answer your queries emailed to firstname.lastname@example.org