Can You Access KiwiSaver Before 65?

KiwiSaver is designed to help you build long-term savings for retirement. In most cases, your money remains invested until you become eligible to withdraw it at age 65. 

However, life does not always follow a predictable path. Certain major events may allow you to access some or most of your KiwiSaver savings earlier. 

There are four main situations where you may qualify: buying your first home, experiencing significant financial hardship, facing serious health circumstances or permanently moving overseas. 

Each option has its own requirements, and approval is not automatic. Before applying, it is important to understand whether you qualify, how much you may be able to withdraw and what taking money out could mean for your future retirement balance. 

1. Buying Your First Home 

Your KiwiSaver savings may help you take your first step onto the property ladder. 

Once you have been a KiwiSaver member for at least three years, you may be eligible to make a first-home withdrawal. This may allow you to withdraw most of your available balance to put towards buying a home, although you must leave at least $1,000 in your account. 

The property generally needs to be one you intend to live in as your main home. If you have owned a property before, you may still qualify in limited circumstances, depending on your financial position and whether you meet the relevant requirements. 

Using KiwiSaver can make a meaningful difference to your deposit, but it is important to begin the withdrawal process early. Your provider will need time to assess your application, confirm your eligibility and arrange for the funds to be released before settlement. 

You should also consider how much you want to withdraw. Taking out most of your balance may help you buy sooner or reduce the amount you need to borrow. However, it also means less money will remain invested for retirement. 

Looking at your deposit, mortgage options and long-term goals together can help you decide how to use your KiwiSaver effectively. 

2. Significant Financial Hardship 

You may be able to apply for an early withdrawal if you are experiencing significant financial hardship and cannot meet essential living costs. 

This option is intended for serious financial difficulty. It is not designed to cover ordinary spending, non-essential purchases or temporary budget pressure. 

Your KiwiSaver provider will normally ask for information showing your financial position. This may include details about your income, expenses, assets and debts, as well as the steps you have already taken to manage the situation. 

If your application is approved, the amount released may be limited to what is considered necessary to relieve your immediate hardship. This means you may not be able to withdraw your entire KiwiSaver balance. 

The process can take time because your provider must review your circumstances and supporting documents. Whether your application is approved and how much you can access will depend on your individual situation and the applicable withdrawal rules. 

Accessing KiwiSaver may provide much-needed support during a difficult period. However, it also reduces the amount that remains invested for your future, so it is worth understanding your other available options before proceeding. 

3. Serious Health Reasons 

Serious illness, injury or disability may also provide grounds for accessing KiwiSaver before age 65. 

You may be eligible if your condition permanently affects your ability to work or creates a serious risk to your life. Early access may also be available if you have a life-shortening congenital condition. 

These withdrawals recognise that your financial needs may change significantly when your health changes. Accessing your savings could help you manage immediate financial pressure, meet important expenses or adjust to a different way of living. 

Your application will generally need to include medical evidence. Your KiwiSaver provider will assess this information against the relevant rules before deciding whether you qualify and how much of your savings may be released. 

Health circumstances and withdrawal requirements can be complex. Checking which documents are required before applying may help you avoid unnecessary delays. 

It is also worth considering how a KiwiSaver withdrawal may work alongside any insurance, savings or other financial support available to you. This can help you make a more informed decision during an already challenging time. 

4. Permanently Moving Overseas 

If you leave New Zealand permanently, you may eventually be able to withdraw your KiwiSaver savings or transfer them to an eligible overseas retirement scheme. 

Your options will depend on where you move and the rules that apply to your destination. You may need to wait for a required period and provide evidence that you have permanently emigrated. 

Not every part of your balance may be available. Certain government contributions may be excluded, while transferring your savings can involve different requirements from receiving the money directly. 

Moving overseas does not automatically mean you need to withdraw your KiwiSaver. Depending on your circumstances, you may be able to leave your savings invested. 

Before deciding, check what you can access, what must remain in your account and whether a withdrawal or transfer is available. You should also consider how your choice may affect your long-term retirement plans. 

Think Beyond the Withdrawal 

KiwiSaver is not an everyday savings account, but it may be available when life takes a major turn. 

Before withdrawing, consider what the money could do for you now and what taking it out could mean later. Withdrawing reduces the amount left to earn investment returns, which may affect the balance available when you retire. 

That does not mean withdrawing is necessarily the wrong decision. Buying your first home, managing genuine hardship, responding to serious health circumstances or moving overseas can all be valid reasons to consider early access. What matters is understanding the rules and making an informed decision based on your situation. 

Watch Mils Muliaina, former All Black and qualified financial adviser at The Mortgage Hub, explain the four situations where you may be able to access KiwiSaver before 65. 

Not sure whether you qualify or what a withdrawal could mean for your future balance? Send The Mortgage Hub a message and we will help you understand your options. Our advice is free.