Kiwisaver withdrawals

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Forums › Finance and wealth management › Kiwisaver withdrawals - not so fast

OldGeek

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#261715 11-Dec-2019 15:33

I am now eligible to withdraw funds from my Kiwisaver account. I have found that the process is no-where near as simple or fast as withdrawing funds from a bank account. Those of us needing to do this need to factor in that the time it takes is weeks rather than days.

My provider had a website that allowed me to track and adjust my accounts. Like Internet Banking it had an array of choices that I assumed would also cover withdrawal. Internet Banking allows me to pay bills and transfer funds so I thought it reasonable that my Kiwisaver provider would allow me to do the same. How wrong I was. Withdrawing funds required a form to be filled in with a signature witnessed by a JP (or equivalent) along with a certified copy of an identity document (ie drivers licence or passport etc). This form needed to be posted to a PO Box address, but eventually the provider allowed me to scan and email a copy instead. Then they committed to pay out within 10 working days.

For those considering a Kiwisaver account withdrawal, allow at least 3 weeks for the funds to be available.

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OldGeek.

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#2372556 11-Dec-2019 15:40

pretty sure this would have been all outlined to you when you joined

OldGeek

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#2372570 11-Dec-2019 15:59

I joined over a decade ago, and the provider I am with now bought out the provide I joined. Things do change.

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timmmay

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#2372577 11-Dec-2019 16:08

It can take time, weeks, to do a withdrawl. My wife worked in the legal side of property, people would turn up on the day of settlement and want to use their kiwisaver - nope not going to happen.

Remember it's not a bank account, it's an investment that you're withdrawing from. They keep cash on hand to pay people out, but I guess there are processes too. Better than having someone steal your savings I guess.

Jase2985

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#2372581 11-Dec-2019 16:17

OldGeek:

I joined over a decade ago, and the provider I am with now bought out the provide I joined. Things do change.

you would would have been sent information about that change.

alasta

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#2372600 11-Dec-2019 16:36

I would have thought that this is pretty normal for any sort of managed funds. Your fund manager would need to sell the assets and deal with any FX conversion, plus the anti-money laundering processes.

mattwnz

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#2372611 11-Dec-2019 16:45

alasta:

I would have thought that this is pretty normal for any sort of managed funds. Your fund manager would need to sell the assets and deal with any FX conversion, plus the anti-money laundering processes.

I guess it would depend on the type of fund. Mine is just in a basic cash fund, which is no different to a bank deposit or term deposit, except it earns less.

BlinkyBill

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#2372618 11-Dec-2019 16:53

Withdraw the lot and move the funds to a non-KiwiSaver fund. PIE funds, at least, the ones I have) allow same-day withdrawals. Most serious fund managers have a fund equivalent to their KiwiSaver fund, in terms of structure, but which is a PIE fund.

If you are still receiving Employer contributions, keep a token amount in the KiwiSaver fund and move the rest.

The purpose of the tough withdrawal regime is to support the enforced savings model; the scheme was set up to be non-transactional.

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wellygary

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#2372623 11-Dec-2019 16:57

Kiwisaver is the creation of politicians, ( and therefore bureaucrats) so always expect forms, old ways of working and slowness.

heck, Tenancy services only started taking things other than cheques for bonds in 2015.....

FineWine

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#2372656 11-Dec-2019 17:49

I qualified this October and as mine was with the ANZ KiwiSaver scheme and that is where all our accounts are I just went in 6 weeks prior to eligibility and received a call 1 week post the date from the bank to say it had all been done. No hassle what so ever.

By the way - the bulk of my KiwiSaver came in from 30 years of Australian Superannuation schemes in 2014 and I made a good profit on the exchange rate at that time 😀.

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gbwelly

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#2372660 11-Dec-2019 17:54

Jase2985:

OldGeek:

I joined over a decade ago, and the provider I am with now bought out the provide I joined. Things do change.

you would would have been sent information about that change.

That reads to me as very snarky. I wouldn't have a clue either about drawing mine down. I got auto enrolled, might have got something in an envelope that sat on the dining table for a month or so until I threw it away, can't remember.

davidcole

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#2372676 11-Dec-2019 18:24

gbwelly:

Jase2985:

OldGeek:

I joined over a decade ago, and the provider I am with now bought out the provide I joined. Things do change.

you would would have been sent information about that change.

That reads to me as very snarky. I wouldn't have a clue either about drawing mine down. I got auto enrolled, might have got something in an envelope that sat on the dining table for a month or so until I threw it away, can't remember.

and it’s likely something you’ve been enrolled in, in the background, for a number of years.

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BlinkyBill

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#2372692 11-Dec-2019 19:48

gbwelly

.... I got auto enrolled, might have got something in an envelope that sat on the dining table for a month or so until I threw it away, can't remember.

I hope you have corrected the assignment to one of the default schemes, otherwise you are losing quite a bit of money.

Jase2985

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#2372716 11-Dec-2019 20:44

gbwelly:

Jase2985:

OldGeek:

I joined over a decade ago, and the provider I am with now bought out the provide I joined. Things do change.

you would would have been sent information about that change.

That reads to me as very snarky. I wouldn't have a clue either about drawing mine down. I got auto enrolled, might have got something in an envelope that sat on the dining table for a month or so until I threw it away, can't remember.

is it snarky when someone tell you the truth? or you just cant handle someone telling you the truth?

the op and your self have been given all the information, because the kiwi saver providers have to give you all the information by law. if you choose to ignore it and dont understand how your plan works, you cant blame anyone but yourself.

Jase2985

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#2372718 11-Dec-2019 20:45

BlinkyBill:

gbwelly

.... I got auto enrolled, might have got something in an envelope that sat on the dining table for a month or so until I threw it away, can't remember.

I hope you have corrected the assignment to one of the default schemes, otherwise you are losing quite a bit of money.

likely not loosing money, just not making as much money as you could in a similar scheme with a different provider.

OldGeek

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#2374371 12-Dec-2019 17:38

To the various posters critical of my lack of knowledge, fair comment except that:

The original scheme I joined in 2007 no longer exists as it was sold to Kiwibank some years ago. I would have been aware that my funds were not accessible until 2015 at the earliest and I kept the account open until recently. Technology-wise a lot has happened in the meantime.
The point of my post was simply to alert GZers to the fact that withdrawals are very formal and cannot be completed online so can take weeks.

So, for those planning on closing their Kiwisaver accounts, allow time.

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OldGeek.

Quic referal code: https://account.quic.nz/refer/581402

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