Can I Gift My KiwiSaver To A Family Member?
KiwiSaver is a savings program in New Zealand that helps people save up for their retirement. While the funds you save are usually meant for your own retirement, there are some cases where you can use them to help out a family member. However, gifting your KiwiSaver to a family member may not be an easy and straightforward process.
Here are a few situations where you might be able to use your KiwiSaver funds to assist a family member:
First Home Withdrawal: If you’re a member of KiwiSaver and meet certain criteria, you may be eligible to make a withdrawal from your KiwiSaver account to put towards buying your first home. This could indirectly benefit a family member if you’re assisting them with a home purchase.
- Eligibility: If you’re planning to buy your first home and you’re a member of KiwiSaver, you may be able to withdraw some of your savings. To do this, you need to have been a KiwiSaver member for at least three years, and the property you’re buying must be the first home you’ve ever purchased. Also, you must plan to live in the property you’re buying.
- Withdrawal Amount: There are limits on the amount of money you can take out. These limits might change from time to time, so it’s a good idea to check the current rules to know how much you can withdraw.
Read More: What Stops You From Using KiwiSaver For First Home
Hardship Withdrawal: If you’re going through a tough financial situation, you might be able to take money out of your KiwiSaver account. However, there are certain conditions you need to meet, and you’ll have to show that your finances are in a really bad state. If you’re not going through money troubles yourself, it can be difficult to take out funds from your KiwiSaver account to help out a family member who’s struggling financially.
- Eligibility: If you’re facing tough financial times and struggling to cover your basic living expenses, there’s an option called hardship withdrawals that might be able to help. These withdrawals are specifically designed for people who are dealing with serious illnesses, disabilities, or the risk of losing their home and who can’t make ends meet without accessing some of their retirement savings.
- Application Process: If you need to withdraw money from your KiwiSaver account because you’re going through a tough time, you’ll need to apply to your provider. You’ll also need to show proof of the hardship you’re facing. Please note that the application process may require some paperwork, so be prepared to provide some documentation.
Read More: Can I Withdraw My KiwiSaver Savings Early?
Serious Illness Withdrawal: If you or your family member are facing a serious illness, you may be able to take out money from your KiwiSaver account because of financial difficulties caused by the illness. But to do this, you’ll need to prove that the illness is serious. This involves working with your doctor and KiwiSaver provider to get the necessary documentation.
Read More: Can I access KiwiSaver money early if I have health issues?
Death Benefits: In the unfortunate event of your death, your KiwiSaver funds can be distributed to your nominated beneficiaries. This means that you can name family members or other people with whom you want to receive your savings directly. If you haven’t chosen anyone to be your beneficiary, your savings will be given out as part of your estate according to legal processes.
Read More: What Happens to my KiwiSaver money if I Die?
Trans-Tasman Retirement Savings Portability: If you’re moving to Australia permanently, you may be able to transfer your KiwiSaver funds to an Australian superannuation scheme through the Trans-Tasman Retirement Savings Portability scheme. There are specific criteria for eligibility, and the process involves coordination between your KiwiSaver provider and the Australian superannuation fund. The transfer is usually facilitated through the Trans-Tasman Retirement Savings Portability scheme.
It’s important to note that each of these situations has specific eligibility criteria, and there may be tax implications associated with certain withdrawals or transfers. Additionally, the rules around KiwiSaver may evolve, so it’s advisable to check with your KiwiSaver provider or seek advice from a financial advisor to get the most up-to-date and accurate information based on your specific circumstances.