What Happens To My Kiwi Saver Money If I Die

We know you're not planning to die whatever time presently, but do you lot know what would happen to your KiwiSaver money if you do?

Does the government get it? Or your partner? Or does some of the coin become back to your employer?

If you feel confused about what happens, you're not the but one.

A study of 1000 people by Westpac NZ in 2017 showed 35 per cent didn't know what would happen to their KiwiSaver money after they died. Six per cent thought information technology went back to the government.

What happens to your KiwiSaver money when you die?
The answer is: it goes to your manor, the puddle of your assets, when you lot dice.

"KiwiSaver is a large part of many people'due south estates these days, and probably will become increasingly then over fourth dimension," says Juliet Moses, a partner at TGT Legal.

"And so, it is important to think about what y'all would want to happen with your KiwiSaver coin when you lot dice," Moses says.

It'due south important to have a volition
"If you do want something specific to happen to your KiwiSaver money, which I'grand sure many people practise, it would admittedly make sense to take a will to put those instructions in identify," Moses says.

"A will is the best way to ensure your KiwiSaver money goes where you lot want it."

If you die without a will, when yous die your avails and possessions are left for legislation to procedure. This is referred to as dying in "intestate", and can be a lengthy (and perhaps plush) legal process for your family unit, and could involve the High Court.

This tin can be a stressful process for your family while they are grieving.

What if I don't accept a large KiwiSaver residuum?
If you die without a volition, and the total value of your estate is under $fifteen,000, Citizens Advice Bureau says your next of kin can take the role of administrator without having to apply to the High Court.However, with the boilerplate KiwiSaver residuum around $26 ,000 (FMA KiwiSaver Annual Report 2021), this means most people will have an estate worth more than $15,000. And for many, KiwiSaver will but form part of total avails.

A will can also help with dividing upwardly personal items, and then it's however recommended fifty-fifty if you don't accept large assets. It'due south your mode of confirming what happens to your assets, no affair how big or modest, afterward you lot are gone. A will helps sort your KiwiSaver money when y'all die.

It's a great idea to review your volition annually or when your circumstances change, for example when a relationship changes.

How to get a volition
You can contact a lawyer, Public Trust, Citizens Advice Bureau, or the New Zealand Law Guild for data and communication virtually getting a will.

Wills don't have to be expensive, and it might pay to shop effectually. Asking family unit and friends who organised their will might help besides.

E'er include in your will who your KiwiSaver provider is, and let a shut family unit member or friend know likewise. This will help sort your KiwiSaver money when you die.

In summary
What happens to your KiwiSaver money when yous die? Either it will exist sorted in accordance to your will, or if yous don't take a will then it's left to legislation to process.

The best thing you tin do right at present is tell your next of kin or another trusted person who your KiwiSaver provider is. If you don't know this, find out by logging into myIR account or contact IRD.

And then the next pace. If you already have a volition, take time to review it annually, or when your circumstances modify. If you don't take a volition, at present'southward a bang-up time to put things in motility and get one. This will brand sure your KiwiSaver money (and other avails) are divided up in accord with your wishes, instead of beingness delegated past the courts.

Published October 2018, updated September 2021

Information correct as at October 2021. Pie Funds Management Express is the issuer and manager of the JUNO KiwiSaver Scheme. Click here for our Product Disclosure Statement. Whatsoever advice is given by Pie Funds Management Limited, and is general only. It relates only to the specific financial products mentioned and does non account for personal circumstances or financial goals. Please see a fiscal adviser for tailored advice. You may accept to pay product or other fees if you act on whatsoever advice. As managing director of the Scheme we receive monthly fees that are determined past your balance and whether you lot are xiii years or over. We will benefit financially if you invest in our products. Nosotros manage any conflicts of interest via an internal compliance framework designed to ensure we meet our duties to you. For data most the advice we can provide, our duties and complaint process and how disputes tin exist resolved, visit www.junokiwisaver.co.nz. All content is right at time of publication appointment, unless otherwise indicated. Past functioning is not a guarantee of future returns. Returns tin exist negative equally well equally positive and returns over unlike periods may vary. Delight let us know if you would like a difficult re-create of this disclosure information.

Source: https://www.junofunds.co.nz/learn-with-juno/article/what-happens-to-your-kiwisaver-money-when-you-die

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