KiwiSaver
Some years ago, friends of mine were preparing to buy their first home. They were moving on from an earthquake-damaged property in the red zone of Christchurch, not far from The Palms mall. What they hadn’t planned for was the time required to apply for and receive their KiwiSaver funds before settlement. Their experience made me wonder how many others don’t realize that KiwiSaver money must be received before settlement and is paid directly into your solicitor’s account, ready for drawdown on settlement day.
In the next few paragraphs, I’ll outline what KiwiSaver is, what it can be used for, recent changes, what you can withdraw after three years of contributions, and how much time you need to allow when using KiwiSaver for your first home.
KiwiSaver is primarily a voluntary retirement savings scheme designed to help you save for your future. In the 2025 Budget, the Government introduced several changes to
KiwiSaver to encourage saving for both first homes and retirement.
- The default rate of employee-matching employer KiwiSaver contributions will increase
from 3% to 4% in two stages: from 3% to 3.5% on April 1, 2026, and from 3.5% to 4% on
April 1, 2028. A temporary rate reduction will be available for those who wish to
continue contributing at 3%.
- From April 1, 2026, 16- and 17-year-olds will qualify for employer KiwiSaver
contributions of 3.5%, provided they meet other eligibility requirements.
- From July 1, 2025, the Government will contribute 25 cents for every dollar you
contribute each year, up to a maximum government contribution of $260.72.
- If you earn more than $180,000 in taxable income per year, you will not qualify for
government contributions.
There are many different providers, and it’s worth meeting with two or three to help you decide which one suits you best. The IRD website provides a full list with contact details. The sorted.org.nz is also a helpful tool for comparing funds, planning your budget, and exploring other financial resource
If you’re buying your first home, you may be eligible to withdraw savings from your KiwiSaver to put toward your purchase. Before applying, talk to your provider so you understand the process and eligibility criteria. You must have contributed to KiwiSaver for at least three years before you can make a first-home withdrawal. You can also speak with Kāinga Ora – Homes and Communities for additional support.
If you have been contributing for three years, you can withdraw:
- Your contributions
- Your employer’s contributions
- The government contribution
- Interest earned
- Fee subsidies (if you received these)
You must leave at least $1,000 in your account, and any funds transferred from an Australian complying superannuation scheme cannot be withdrawn. You must also live in the home you are purchasing, and it must be the first time you have used KiwiSaver funds to buy a property.
The process is explained clearly on the Sorted.org.nz. Most providers need around 10 days to process a withdrawal, but it’s wise to allow extra time for potential delays. If your funds are not received before settlement, you won’t be able to use them—so apply early. Once approved, the money is paid into your solicitor’s account, ready to go toward your first home loan and, ultimately, your first home.
KiwiSaver can also be accessed in cases of financial hardship and for health reasons , but if you’re planning to purchase your first home, it’s well worth considering how KiwiSaver can support that goal.
Melissa Kala, April 2026