What Happens to Your KiwiSaver When You Die?
KiwiSaver is one of the largest assets many New Zealanders will own in their lifetime. While it’s easy to focus on its role in retirement planning or buying a first home, it’s also important to think about what happens to your KiwiSaver funds if you pass away. Understanding how your KiwiSaver is handled after death can help protect your loved ones from unnecessary stress and delays.
Your KiwiSaver Becomes Part of Your Estate
When you die, your KiwiSaver account doesn’t automatically transfer to your partner or family members. Instead, the funds become part of your estate—alongside other assets like your home, car, or bank accounts. This means that how your KiwiSaver is distributed will depend on whether you have a valid will and how your estate is administered.
It’s important to note that you can’t directly nominate beneficiaries through your KiwiSaver provider. Distribution is always handled through your estate.
If You Have a Will
If you’ve made a will, you’ve taken an important step in ensuring your assets—including your KiwiSaver—go where you want them to. Your KiwiSaver provider will pay the full account balance to your estate, and the executor of your will distributes the funds according to your instructions.
To make things easier for your executor or loved ones, it’s a good idea to let them know which KiwiSaver provider you’re with. That way, they’ll know who to contact when the time comes.
If You Don’t Have a Will
If you pass away without a will (this is known as dying intestate), your KiwiSaver funds and other assets are still part of your estate, but the process becomes more complicated. Someone—usually a close family member or partner—will need to apply to the courts to be appointed as the administrator of your estate. This takes time and can be costly.
Without a will, the courts will also decide how your assets are distributed. This may not align with your wishes and can lead to conflict among surviving family members.
What If Your KiwiSaver Balance Is Under $15,000?
If your KiwiSaver balance is less than $15,000 at the time of your death, the process can be simpler. An authorised person—such as your spouse, child, or someone caring for your children—can apply directly to your provider for the funds without needing to go through the full probate process or obtain letters of administration.
However, once your balance exceeds $15,000, your estate will need to be formally administered, either by the executor named in your will or someone appointed by the court.
What Happens If You Leave Behind a Partner?
If you were in a relationship when you passed away, your surviving partner may have the option of choosing between what’s outlined in your will and what they are entitled to under the Property (Relationships) Act. If there’s a relationship property agreement in place, this will also come into play. A lawyer can help your partner decide which option is in their best interest.
Planning Ahead: What You Should Do Now
To make sure your KiwiSaver and other assets are handled the way you want them to be:
Make a will: This is the most effective way to ensure your assets are passed on according to your wishes.
Keep your will up to date: Life changes—marriage, children, or changes in your financial situation—should prompt a review of your will.
Inform your loved ones: Make sure the executor of your will or your next of kin knows who your KiwiSaver provider is and where to find your will.
Seek professional advice: A solicitor can help you create or update your will and provide guidance on how to manage your estate.
The Bottom Line
Your KiwiSaver savings don’t just vanish when you die, but they also don’t automatically end up in the hands of your loved ones. They become part of your estate, which is why having a will is so important. It can make the difference between a straightforward process and a lengthy, stressful one for your family.
Taking the time now to plan ahead ensures your savings are used how you’d like them to be—and gives your loved ones one less thing to worry about.
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