How to Withdraw your KiwiSaver when moving abroad (or from overseas)

So, you've decided to take the plunge and move overseas. Exciting times! But amidst the packing and farewells, don't forget about your KiwiSaver.

For many New Zealanders, their KiwiSaver account is a significant financial asset. Whether you're a seasoned expat or just starting your overseas adventure, understanding how to access your KiwiSaver funds is crucial. This guide will walk you through the process of withdrawing your KiwiSaver when moving abroad, providing a clear understanding of the rules, eligibility criteria, and necessary steps.

Can I Withdraw My KiwiSaver When I Move Overseas?

The short answer is yes, but with certain conditions.

You are eligible to withdraw your KiwiSaver funds if you:

• Permanently emigrate to a country other than Australia. This means you have no intention of returning to New Zealand to live.¹
• Have been living outside New Zealand (and Australia) for at least one year.¹

Important Note: If you're moving to Australia, you cannot withdraw your KiwiSaver. However, you can transfer your savings to an Australian complying superannuation scheme.²

How to Transfer KiwiSaver to Australia 👉

How to Withdraw Your KiwiSaver: A Step-by-Step Guide

Withdrawing your KiwiSaver involves a specific process. Here's a breakdown of the steps:

1. Contact your KiwiSaver provider: Get in touch with your provider (e.g., BNZ, ANZ, SuperLife) to inform them of your intention to withdraw your funds and request the necessary forms. You can usually find these forms on their website or by contacting their customer support.³
2. Complete the permanent emigration withdrawal form: This form requires your personal details, KiwiSaver account information, and a declaration of your permanent emigration.⁴
3. Complete a statutory declaration: This legal document confirms your permanent emigration and must be signed by an authorized person, such as a Justice of the Peace (JP) or notary public, in New Zealand.⁴
4. Provide evidence of permanent emigration: You'll need to provide documents that support your claim of permanent emigration. This may include:
   • Proof of departure from New Zealand: Flight tickets or travel itineraries.⁴
   • Certified copy of passport: Showing your departure stamp and any visas or residency permits.⁴
   • Overseas address verification: Utility bills or bank statements showing your overseas address.⁴
5. Submit your application: Send your completed forms and supporting documents to your KiwiSaver provider. You can usually do this by mail, email, or in person at a branch.³
6. Wait for approval: Your KiwiSaver provider will review your application. Once approved, they will process your withdrawal and transfer the funds to your nominated bank account.

What Can You Withdraw?

You can withdraw most of your KiwiSaver savings, including:

• Your contributions
• Employer contributions
• Investment returns
• Interest earned on member tax credits

However, you cannot withdraw:

• Government contributions¹
• The NZD 1,000 kick-start (if you received it when you first joined KiwiSaver)¹

Withdrawing Your KiwiSaver From Overseas

The process for withdrawing your KiwiSaver from overseas is essentially the same as described above. However, you might face some challenges:

• Accessing forms and information: You may need to rely on online resources or contact your provider via international calls or email.
• Finding an authorized person to sign your statutory declaration: You'll need to find a JP or notary public in your current country of residence who can witness your declaration. The New Zealand embassy or consulate in your country may be able to assist you with this.⁵
• Providing evidence of your overseas address: Ensure you have readily available documents like utility bills or bank statements that verify your overseas address.

Planning Your Finances: What to Do With Your KiwiSaver Funds

Once you've successfully withdrawn your KiwiSaver funds, it's essential to plan how you'll use them. Here are a few options:

• Reinvest: Consider reinvesting your funds in investment accounts or retirement plans available in your new country of residence.
• Pay off debt: Use the funds to clear any outstanding debts, such as student loans or credit card balances.
• Purchase property: If you're planning to buy a home in your new country, your KiwiSaver funds can contribute towards a deposit.
• Support your living expenses: Especially helpful during the initial settling-in period in your new country.
• Save for future goals: Use the funds to save for future goals, such as education, travel, or retirement.

Tip: When transferring your KiwiSaver funds overseas, consider using a service like Wise (formerly Wise) to avoid high bank fees and get the real mid-market exchange rate. This can save you a significant amount of money, especially for larger transfers.

Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

Important KiwiSaver Withdrawal Considerations

• Tax implications: Withdrawing your KiwiSaver may have tax implications in both New Zealand and your new country of residence. It's essential to seek professional financial advice to understand your tax obligations.⁶
• Impact on future retirement savings: Withdrawing your KiwiSaver means you'll have less money saved for retirement. Carefully consider your long-term financial goals before making a decision.
• Early withdrawal penalties: While you won't face penalties for withdrawing your KiwiSaver after permanently emigrating, it's important to remember that you'll miss out on potential investment growth and government contributions.

Meet Wise: Connect Your Money Worldwide

Moving abroad often involves complex financial transactions, from transferring your savings to managing expenses in a new currency. In supported countries, Wise can help simplify your finances with:

• Wise account: A multi-currency account where you can hold and manage money in 40+ currencies, making it easier to pay bills and spend abroad.
• Linked card: Get a linked card that automatically converts your money at the mid-market rate when you spend abroad.
• Low-cost international transfers: Send money abroad at the mid-market exchange rate with law transparent fees.

Get Started with Wise 🚀

Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

Conclusion

Withdrawing your KiwiSaver when moving abroad can be a valuable financial resource during your transition. By understanding the rules, eligibility criteria, and process, you can ensure a smooth and hassle-free withdrawal. Remember to plan how you'll use your funds wisely and seek professional advice if needed. Good luck with your overseas adventure!