Kiwisaver transfer options
Going to live in Oz? Here’s what you can do, writes Shelley Hanna
QMyson started putting moneyinto akiwisaver account with Fisher Fundswhile hewasat school. Hehas since leftnew Zealand for Australia. Hehas about$5000in his account— can heuse it tobuya house over there?
AThis is a good question. Kiwisaver is a long-term retirement savings scheme. There are limited options to withdraw early, and the main one is for a first home. This is because the Government recognises the value ofhomeownership for families and communities.
With any question about Kiwisaver, you should not hesitate to get in touch with your provider. In your case, your provider is Fisher Funds Management.
I asked them tocommenton your situation and a spokesperson replied: “First things first, unfortunately, your son will not be able to use his Kiwisaver to buy ahouse in Australia. Oneof the Kiwisaver rules around applying for an early withdrawal to put towards a first homerequires that this is used to purchase an estate in land innew Zealand. So, should your son decide to return tonewzealand, he would be able to use his Kiwisaver savings to purchase bare land, a “house and land package” or property with a dwelling already on it (subject to meeting all the eligibility criteria).
“Now, if your son has permanently emigrated to Australia, hemaybe able to transfer his Kiwisaver to a compliant Australian Super provider. Thismaybe worth considering as it would not only consolidate his supers, it would also prevent him from paying two sets of fees (it is worth noting that the rules of the country of origin will still apply to his Kiwisaver funds so, for example, he would not be able to use the funds for a firsthomein Australia and he wouldbecome eligible to withdraw at thenewzealand retirement age of 65). Should he decide to pursue this, the first thing he will need to do ismakesure his Australian Super provider accepts Kiwisaver transfers (not all of them do). If it does, he’ll just need to complete atrans Tasmantransfer form (available on our website) to get started. If it doesn’t, he would need to join an
Australian Super scheme that does accept these types of transfers before proceeding.
“Alternatively, if none of these options suit at the moment, he can opt to leave his Kiwisaver with us, makevoluntary contributions if he wishes andwewill continue to manageand grow his nest egg until he’s ready to review his options once more.”
The main purpose of Kiwisaver is saving for retirement. Formany members, it is difficult to see that far ahead.
Youdo need to have an element of trust that the scheme and our savings will grow into the future, and will be there to provide an extra level of comfortwhenwecometo the end of our working lives.
The scheme is regulated by the Government through the Kiwisaver legislation and changes can only be madethrough due government process.
Having anest egg is providing manykiwisavermemberswith greater financial security and peace ofmind than they had in the past.
Shelley Hanna is an authorised
financial adviser FSP12241. Her disclosure statement is available on request and free of charge by calling 06 870 3838 or going to peak.net.nz.
The information contained in this article is of a general nature and is not personalised. Send your questions
about Kiwisaver to shelley.hanna@peak.net.nz