KiwiSaver Contribution Holiday: Who Qualifies and What You Get
Learn how to temporarily pause your KiwiSaver contributions for up to one year if you need a break from saving.
A KiwiSaver Contribution Holiday is a mechanism that allows you to temporarily stop making payments into your retirement savings account.
Who it's for
This scheme is available to any KiwiSaver member who finds themselves in a position where they need a break from their regular savings. It is designed for members who require more flexibility with their income to manage their current financial circumstances.
What you get
The primary benefit of this scheme is the ability to pause your contributions for a period of up to one year. This provides a way to manage your cash flow by temporarily redirecting money that would otherwise go toward your long-term savings into your immediate budget.
What it costs you
There is no direct fee to use this service, but there are requirements you must meet first. You must have been a member of KiwiSaver for at least 12 months before you are eligible to request this break. To set this up, you must submit an application through the tax authority. Once your application is processed, the pause in your savings will take effect.
The catch to know
The most important thing to understand is that this pause affects more than just your personal contributions. If you are an employee, your employer will also stop making contributions to your KiwiSaver account for the duration of the holiday. This means you will not receive those employer funds during the time your contributions are paused.
How to apply
- Verify that you have been an active KiwiSaver member for at least 12 months.
- Access the official tax authority portal to find the application for a contribution holiday.
- Submit your request through the online system.
- Confirm with your employer that they have been notified of the change to your contribution status.