What is a savings suspension?

If you are employed and you do not want to continue contributions to your KiwiSaver account you may be able to go on a savings suspension for up to 1 year. On a savings suspension you do not have to contribute to your KiwiSaver account. However, if you do not contribute you will not receive the Government Contribution or your employer’s contribution. (You can still receive the Member Tax Credit if you make voluntary contributions - not out of your salary or wages - while you are on a savings suspension.)

If you are an employee, you may apply to Inland Revenue to suspend your contributions to the Scheme if:

  • 12 or more months have passed since your first contribution was received by Inland Revenue, or since you first contributed direct to a KiwiSaver scheme; or
  • you are suffering, or likely to suffer, financial hardship (and Inland Revenue has received at least one contribution from you).


If a savings suspension is granted based on financial hardship, its duration will be three months (unless Inland Revenue agrees to a longer period).  The duration of a savings suspension will otherwise be between three months and one year (unless your employer agrees to a shorter period).  Inland Revenue will notify you before your savings suspension ends and you may apply for a new savings suspension.

You may resume contributing at any time by giving notice to your employer, requiring the employer to start making deductions from your salary or wages.

To apply please complete a Savings Suspension Request Form and send it back to the IRD as detailed on the Form.