Can You Use KiwiSaver to Buy a Car? And Other Questions People Ask
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Can You Use KiwiSaver to Buy a Car? And Other Questions People Ask
6 Mar 2025
KiwiSaver is one of the best tools for saving for retirement in New Zealand, but that doesn’t mean it’s always straightforward. We’ve seen plenty of questions that Kiwis search for when it comes to KiwiSaver—some practical, some surprising, and some that really make us smile.
From wondering whether your KiwiSaver plan can help you buy a car to what happens to your account when you move overseas, these questions reveal how much people are trying to understand and make the most of their KiwiSaver for their future.
In this blog, we’re diving into some of the most common (and a few quirky) questions people have about KiwiSaver. Whether you’re new to KiwiSaver, have a burning question you’ve always wanted to know the answer to but have been too afraid to ask, or just curious about what it can do, we’ve got the answers that you’ve been searching for—literally!
Can I withdraw from my KiwiSaver to buy a car?
Typically no, unless you need it to get to work.
You cannot use your KiwiSaver investment to buy a car. KiwiSaver is designed as a long-term savings scheme to help New Zealanders save for two key goals: retirement at 65 years old, and as a deposit for purchasing a first home. Withdrawals are generally limited to these purposes, alongside situations of significant financial hardship, permanent emigration (excluding Australia), or terminal illness.
Though if you are suffering financial hardship and you need a car to get to work – you can withdraw your KiwiSaver under the financial hardship rules to get to work. Before you get too excited though – it will need to be a very basic car, don’t start dreaming of your KiwiSaver funding the Lamborghini purchase!
Savings Tip: If you’re looking for ways to save for a car, consider setting up a separate savings account or investment fund specifically for that goal!
Can my ex take my KiwiSaver?
Your ex cannot directly take your KiwiSaver account, but they can take some of your KiwiSaver investment if it’s considered relationship property, meaning if you’re separating from a partner after a qualifying relationship (e.g., marriage, civil union, or de facto partnership of three or more years).
Any contributions or growth during the relationship are typically considered shared property and may need to be divided. For specific concerns, it’s best to seek legal advice.
Can I use KiwiSaver to buy land?
Yes, you can use your KiwiSaver investment to buy land, but only under specific conditions. If you’re eligible for a first-home withdrawal, you can put your KiwiSaver investment toward purchasing land where you plan to build your first home. You must intend to build a house and live on the land.
Keep in mind, you can’t use your KiwiSaver investment to buy land for investment purposes or if you already own property unless you qualify as a first-home buyer in exceptional circumstances (e.g., financial hardship or not owning property for some time). Always check with your KiwiSaver provider to ensure you meet their requirements.
Can I have more than one KiwiSaver account?
No, you can only be in one KiwiSaver Scheme at a time, but you can choose to switch providers at any time. The provider you switch to will do all the hard work for you to ensure an easy, hassle-free transition. Switching to Kōura Wealth literally only takes a few minutes, just click here to review your KiwiSaver investment now.
Can 3 people buy a house with KiwiSaver?
Yes, three people can combine their KiwiSaver accounts to buy a house, as long as each person meets the withdrawal criteria. This includes being a KiwiSaver member for at least three years, intending to live in the property, and meeting first-home or second-chance buyer eligibility.
Pooling funds can be a great option, but it’s essential to have legal agreements in place to manage shared responsibilities and avoid disputes. Consulting a lawyer is highly recommended.
Can I gift my KiwiSaver to a family member?
If you are under 65 years of age then no, you cannot gift your KiwiSaver investment to a family member. KiwiSaver is a personal account, and you cannot transfer or gift the funds to others. You can only use it for specific purposes, like purchasing your first home or retiring.
Once you are over 65 years of age and qualify for the NZ Superannuation, you will get full access to your KiwiSaver account, and you can choose to do whatever you want with the money.
Can KiwiSaver be inherited?
Yes, a KiwiSaver investment can be inherited. If you pass away, your KiwiSaver investment will be paid to your estate and distributed according to your will or the laws of intestacy if you have no will. This means your savings could be passed on to your beneficiaries, such as family members.
Can 12-year-olds invest in KiwiSaver?
Yes, parents or guardians can set up a KiwiSaver account for a child.
It’s a great way to start building early savings for your kid’s future, and even better it's an easy way for Grandma and Grandpa to contribute to their Mokopuna's long term financial security or first home.
However, they won’t receive Government Contributions and are not eligible for employer contributions until they turn 18. So some of the main benefits of KiwiSaver don’t apply to those under 18. To learn more about setting up KiwiSaver for your tamariki, click here.
Conclusion
KiwiSaver is a powerful tool for building your financial future. Understanding what you can and can’t do with your KiwiSaver investment can sometimes feel like decoding a financial mystery. Whether you’re curious about buying your first home, worried about what happens when you move overseas, or just want to know how much you should have saved by now, this guide answers all your burning questions.
Remember, if you ever feel uncertain or want to discuss your KiwiSaver options in more detail, Kōura Wealth is here to help. Check out our free Guided Choice tool here.
*Kōura Wealth Limited is the issuer and manager of the Kōura KiwiSaver Scheme. A copy of the Product Disclosure Statement is available at kourawealth.co.nz/documents
*This content is for informational purposes and should not be considered financial advice. Before making any financial decisions, consider consulting a financial adviser.