This article details how to stop your KiwiSaver contributions, walking you through the whole process from qualifying for a KiwiSaver holiday, applying, and the estimated time for your payments to stop.
The KiwiSaver scheme is a valuable system for helping New Zealanders build a strong retirement fund, among many other benefits, but at times it’s just not feasible for some to contribute a portion of their income to this retirement savings account. So, we’ve put together a guide that walks you through the process of stopping your KiwiSaver contributions for a period of time.
Qualifying For a KiwiSaver Holiday.
First off, have you been enrolled with KiwiSaver and been contributing towards your account for over a year?
YES – If you HAVE been a contributing KiwiSaver member for over a year, then you qualify for a KiwiSaver Holiday, just scroll down to the next section for the instructions on applying for this suspension.
NO – If you have NOT been a contributing KiwiSaver member for over a year, you will need to provide evidence of financial hardship when you’re applying to stop your KiwiSaver contributions.
Note: A savings suspension can only be for between 3 and 12 months at any one time. You do not need to give a reason for your savings suspension and you can also have as many savings suspensions as you want.
Applying For The KiwiSaver Suspension.
Before applying for a KiwiSaver suspension, ensure that you have your IRD number as well as your employer’s name and address. If you answered “no” to the question in the previous section, then you’ll also need evidence of financial hardship to include when filling out the application.
To begin your application, log in to your myIR account, then navigate to the ‘KiwiSaver member’ section and select ‘Apply for a savings suspension’.
When completing the application, you can select for how many months you want to take a break for (minimum 3 months, maximum 12 months) and whether or not you want the IRD to tell your employer about it (as either yourself or the IRD need to notify your employer).
If you can’t login to your myIR account, or don’t have one, you can apply for a KiwiSaver suspension by following the link and navigating down the page to ‘Request savings suspension for non-myIR users’.
When Will Your KiwiSaver Contributions Stop?
As soon as the IRD accepts your application, your KiwiSaver payments will stop. The IRD will provide you with a letter which details the start and end dates of your KiwiSaver break, which you will need to provide to your employer.
Still Looking For More Information?
If you would like closer help with this process, then feel free to reach out to me via the button below, and I will be in touch to guide you through the process.