What happens to your KiwiSaver funds if you die?

KiwiSaver is a great way to save for your future. For many Kiwis, your KiwiSaver account will likely be one of the most significant assets you own. While it’s not very pleasant to think about, it's important to be aware of what happens to your KiwiSaver funds if you were to die. Let's break it down.

Your KiwiSaver funds become part of your estate

If you were to die, your KiwiSaver funds become part of your estate, including any other assets (like a home or bank accounts) you might have.
 

Who gets your KiwiSaver your funds when you die?

It’s not possible to nominate people to receive your funds directly from your KiwiSaver provider. How your KiwiSaver funds are distributed will depend on whether you have a will in place that specifies what you want to happen to those funds.

If you have a will

Making a will is one way to ensure that assets, like your KiwiSaver funds, end up with the people you choose. A will should clearly outline who should receive your assets, like your KiwiSaver funds, and provide clear instructions for distributing your assets. If you’ve made a will, your KiwiSaver Scheme provider will pay your full account balance to your estate and your funds will be distributed accordingly.

Things to remember: Once you’ve made a will its best to tell the people in your will who your KiwiSaver Scheme provider is. That way in the unfortunate circumstance that you die, they’ll know which provider to contact.

If you don’t have a will

In the event that you kick the bucket and there is no will in place, things are a bit more complicated. An application will need to be made to the New Zealand court to appoint someone, such as your partner or close relative, to manage your estate, which includes your KiwiSaver funds.  

In this situation, the courts will decide how to distribute your KiwiSaver funds, leaving you with no say in who receives your KiwiSaver funds. This process can be lengthy and complex, often more so than if you had a will in place. 

If your KiwiSaver account balance is under $15,000, an authorised person such as your partner, your children or someone caring for your children, can apply for the funds without requiring probate or letters of administration.
 

Making a plan

We recommend having a will in place to ensure that your assets are paid out according to your wishes. It’s also important to regularly review and update your will to ensure that it reflects your current circumstances and wishes. 

By making a plan today you can save your family and loved one’s time, money, and potential disputes in the future.

AMP does not provide assistance with wills and estate administration. We suggest seeking advice from certified professionals. However, if you’re an AMP KiwiSaver Scheme member and would like more information, please contact us.