KiwiSaver Savings Suspension

Q: How long can a KiwiSaver savings suspension last?

Between 3 months and 12 months. You can take as many as you want, one after another, and you do not have to give a reason once you have been a contributing member for 12 months.

Q: Can I take a savings suspension if I have been in KiwiSaver less than a year?

Only on financial hardship grounds. You must have made at least one contribution and show evidence of hardship for reasons outside your control. The default period granted is 3 months, and up to 12 months depending on circumstances.

Q: Does my employer still contribute during a savings suspension?

No. Your employer stops contributing as well, unless your employment agreement says otherwise. That is the part that makes a suspension expensive rather than free.

Q: Is a savings suspension the same as opting out of KiwiSaver?

No. Opting out ends your membership and is only available between day 14 and day 56 of a new job. A savings suspension keeps your membership and your balance, and just pauses contributions.

Q: What happens when my savings suspension ends?

Inland Revenue tells you when you are near the end. If you do not apply for another suspension, they ask your employer to restart deductions automatically. You can also restart earlier by telling your employer.

Pausing KiwiSaver is straightforward to arrange and more expensive than it looks. This page puts a figure on both. Current for the 2026–27 tax year.

A savings suspension stops your KiwiSaver deductions for 3 months to 12 months. After 12 months of contributing membership you do not need to give a reason. Your employer stops contributing too, so on $70,000 a full year of suspension gives up $1,975.72 of other people's money.

What a full year of suspension actually costs

Your own contributions are not a cost. That money stays in your pay, which is the point. The cost is the money you stop receiving from other people, and on $70,000 at the default 3.5% rate it looks like this.

What stops and what stays during a savings suspension on $70,000
Over a full year	Amount	Whose money
Deductions you keep in your pay	$2,450.00	Yours
Employer contribution given up	$1,715.00	After 30% ESCT
Government contribution given up	$260.72	Unless you pay voluntarily

You keep $2,450.00 and forgo $1,975.72. That is the trade, stated plainly. It can still be the right call when the alternative is missing rent, and the government contribution half of it is recoverable with a voluntary payment.

Whether you qualify

Qualifying for a savings suspension
Your situation	What you can get	Reason needed
Contributing member 12 months or more	3 to 12 months	None
Member less than 12 months	3 months by default, up to 12	Evidence of financial hardship

The statutory minimum is expressed as 92 days rather than 3 months, which is why a suspension that looks like a quarter can run a few days past it. There is no limit on how many you take, and they can run back to back indefinitely.

How to apply

Apply in myIR, from the KiwiSaver account panel on the homepage. There is a separate online form if you do not have a myIR account.
Have your IRD number, address and contact details ready, along with your employer's trade name and address. An early application also needs your hardship evidence.
The suspension starts on the date Inland Revenue approves it, not the date you applied. It is not backdated.
You are sent a notice with the start and end dates. Show it to your employer, and keep it.

If you gave Inland Revenue your employer's details, they are sent a notice as well.

Changing jobs during a suspension

Your new employer must see the notice. Without it they are required to keep deducting KiwiSaver, and those deductions are not refunded automatically. You have to contact Inland Revenue and ask.

If you have lost the notice, print a copy from myIR or ask for it to be reissued before your first payday in the new job. This is the one part of a suspension that costs people money through nothing but paperwork.

A six-month suspension, and what it is worth to restart early

1.Gross salary$70,000
2.Your deductions paused for six months at 3.5%Stays in your pay$1,225.00
3.Employer contribution forgone over the same six monthsAfter 30% ESCT$857.50
4.Government contribution forgone, if nothing is paid voluntarilyRecoverable with a payment before 30 June$130.36
Given up over six months$987.86

Lowering your rate instead

A suspension is not the only way to reduce what comes out. The alternatives keep the employer contribution running, which a suspension does not:

Drop to the default rate. If you are on 6%, 8% or 10%, moving back to 3.5% cuts the deduction while keeping every dollar of employer money. See change your KiwiSaver contribution rate.
Apply for a temporary rate reduction. This is the only approved route to a 3% employee rate. It is granted for 3 to 12 months and has to be reapplied for each year.
Suspend, but keep paying the government contribution. $1,042.86 paid directly to your provider between 1 July and 30 June still collects the full $260.72.

change your KiwiSaver contribution rateLowering the rate rather than stopping altogether
KiwiSaver government contributionThe $260.72 you can still collect
how to opt out of KiwiSaverLeaving altogether, and its narrow window
KiwiSaver employer contributionWhat stops when your deductions stop

Common questions

How long can a KiwiSaver savings suspension last?

Between 3 months and 12 months. Once you have been a contributing member for 12 months you do not have to give a reason, and you can take as many suspensions as you want, back to back.

Can I take a savings suspension if I have been in KiwiSaver less than a year?

Only on hardship grounds. You need to have made at least one contribution and to show evidence of financial hardship for reasons outside your control. Inland Revenue grants 3 months by default, and up to 12 months depending on your circumstances. An application where the change was within your control may be declined.

Does my employer still contribute during a savings suspension?

No. The compulsory employer contribution stops too, unless your employment agreement says otherwise. On $70,000 that is $1,715.00 a year after ESCT, and it is the reason a suspension is not free.

Is a savings suspension the same as opting out of KiwiSaver?

No. Opting out of KiwiSaver ends your membership and is only possible between day 14 and day 56 of starting a new job. A savings suspension keeps your membership, your balance and your fund, and pauses the contributions only.

Do I still get the government contribution on a savings suspension?

Only on what you actually pay in. Deductions stop, so nothing accrues from your salary. You can still pay your provider directly during the suspension, and the KiwiSaver government contribution of $260.72 is still available on $1,042.86 of voluntary payments.

What happens when my savings suspension ends?

Inland Revenue notifies you as it approaches. If you do not apply for another suspension they ask your employer to restart deductions automatically, so it does not lapse into an accidental opt-out. You can restart earlier at any point by telling your employer, though a change within 3 months of your last one needs their agreement.

Where these figures come from

2026–27 tax year (1 April 2026 – 31 March 2027). Last verified 30 July 2026.

how to opt out of KiwiSaverEnding membership, not pausing it
KiwiSaver contribution ratesLowering your rate instead of stopping
KiwiSaver government contributionWhat you can still collect while paused
KiwiSaver employer contributionThe money that stops with yours
employer superannuation contribution taxWhy the employer figure is not the headline rate