Taking a KiwiSaver contribution (savings) break
By MAS Team | 26 November 2018
If you are currently contributing to KiwiSaver (and have been in KiwiSaver for more than 12 months), you can choose to temporarily stop making regular contributions from your wages or salary. This is known as a savings suspension.
Before you decide to suspend your KiwiSaver contributions, consider what you might be missing out on:
For a person earning $50,000 p.a. and contributing 3% of their salary, they could be missing out on up to $3,259 p.a. paid into their KiwiSaver account.
If you are looking to buy your first home and want to qualify for the KiwiSaver Home Start Grant, you must have been contributing the equivalent of at least 3% of your salary each year for at least three years. Therefore, if you suspend your contributions even though you still have a balance in KiwiSaver, you may not be able to qualify for the grant as soon as you would want to.
Click here for more info on using KiwiSaver to buy your first home.
Before applying for a savings suspension, it could be worthwhile to speak to one of our advisers about the potential impact of suspending your KiwiSaver contributions – it costs nothing. Call us on 0800 800 627 or email firstname.lastname@example.org.
To suspend your employee contributions, complete the savings suspension request form located here under IRD forms.
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