So you want to opt out of KiwiSaver?
Before you decide to throw it in, check out what you’ll miss out on.
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KiwiSaver comes with $1,000 from the Government just for joining.
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With KiwiSaver you can get up to $521 a year from the Government, for saving the equivalent of just $20 a week.1
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Your employer is required to contribute 3%.2
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You can use your KiwiSaver savings to purchase your first home, and KiwiSaver members may qualify for Housing NZ grants of up to $5,000.3
Questions? Email us or phone us during business hours on 0800 427 384. Or get on to it and apply to join us now. It only takes a few minutes.
Still not interested? Here’s everything you need to know about opting out...
Who can opt out of KiwiSaver?
How do I opt out of KiwiSaver?
What happens if I’m late opting out?
What happens if I can’t opt out of KiwiSaver?
If I can’t opt out, how else can I get my KiwiSaver money?
Who can opt out of KiwiSaver?
If you are a new employee who has been automatically enrolled into KiwiSaver, you can apply to opt out after 13 days but before 8 weeks, from the day you start your job.
You can only opt out when a new employer has enrolled you into a KiwiSaver scheme. If you are not already enrolled, a new employer is obliged to enrol you when you start working for them.
You are not able to opt out if you joined KiwiSaver through a previous employer, chose to opt in to KiwiSaver through your existing employer or joined KiwiSaver by signing up directly with a Scheme provider.
Note: Even if you are intending to opt out, many employers are required to automatically enrol their eligible employees into a KiwiSaver scheme, so KiwiSaver deductions will be taken from your pay. After 13 days, but before 8 weeks, from starting your job you can apply to opt out and have these deductions refunded to you.
How do I opt out of KiwiSaver?
You can ask your employer for a New employee opt-out request (KS10) form which once completed they will send to the Inland Revenue. Alternatively, you can complete the Inland Revenue online opt-out request and Inland Revenue will then let your employer know you have opted out. Any contributions you have made to KiwiSaver will be refunded back to you. Remember you must do this before the end of your 8th week of employment.
What happens if I’m late opting out?
The Inland Revenue may accept late opt-outs at their discretion if there were events outside your control which prevented you from submitting an opt-out form in time, or if any of the following apply:
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You didn’t receive an information pack from your employer within the first 7 days of starting your new employment.
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You didn’t receive an investment statement for the default KiwiSaver Scheme you were allocated to or the employer’s chosen KiwiSaver Scheme.
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You were automatically enrolled when you shouldn’t have been.
If you are outside the 8 week opt-out period, you must send the new employee opt-out request form directly to Inland Revenue. Inland Revenue will consider opt-out applications up to three months after the day they received your first employee contributions.
If your opt-out application isn’t accepted, Inland Revenue will consider your application as a request for a contributions holiday. If you are eligible for a contributions holiday Inland Revenue will notify you and your employer so you won’t continue paying employee contributions from your salary/wages. In this circumstance you will not be refunded any employee contributions that have already been made.
What happens if I can’t opt out of KiwiSaver?
If you can’t opt out of KiwiSaver because you do not meet the criteria above, at least find out where your KiwiSaver contributions are being invested!
There are many people contributing to KiwiSaver who have no idea who is looking after their money, and many KiwiSaver providers don’t have the current contact details for some of their members.
This is your hard-earned money, so it is important to know what is happening with it, where it is being invested, what fees are being charged, and what returns you are getting. If you don’t know who your provider is you could:
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Call Inland Revenue on 0800 549 472 and ask who your KiwiSaver provider is.
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Join the Gareth Morgan KiwiSaver Scheme and we will find your money for you.
If I can’t opt out, how else can I get my KiwiSaver money?
Generally, you will have to wait until you are eligible to receive NZ Superannuation to withdraw the money in your KiwiSaver account. In extreme situations, you may be able to access some of the money in your KiwiSaver account earlier. For more information please see our KiwiSaver Withdrawals page.
1If you are eligible the Government will contribute 50 cents per dollar of your KiwiSaver contributions as member tax credits, up to a maximum of $521 per annum. These rates are current at the time of publication but are subject to legislative change. More information about eligibility and conditions is available on our Member Tax Credits page.
2Only for those members who are contributing through their pay and not yet eligible to withdraw. Employers may not have to contribute to KiwiSaver for you if they are already contributing to another superannuation scheme which meets certain criteria. Employers are required to contribute at least 3% to your KiwiSaver Scheme.
3After three years in KiwiSaver, members can withdraw some of their KiwiSaver money to help them purchase their first home. In addition to this some members may also be eligible for a first home deposit subsidy of up to $5,000 through Housing New Zealand. More information is available on our First Home Withdrawal page.
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