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Why you need a will if you have KiwiSaver

If you're like many Kiwis, you probably don’t think too much about what happens to your KiwiSaver account when you’re no longer around. But here’s the thing—if your KiwiSaver balance is over $15,000, having a will is a smart move.

Avoid unnecessary stress for your loved ones

With the average KiwiSaver balance now at around $32,000 (Retirement Commission, 2024), your KiwiSaver account is a significant part of your financial future, and it’s likely to be one of your biggest assets. But if you pass away without a will, your KiwiSaver funds might not end up where you want them to go. Without a will, your family is left to navigate a complicated legal process to figure out who will receive those funds. This could take time, add stress, and even cause disputes—none of which you’d want your loved ones to face at such a challenging time.

Take control of your legacy

A will gives you the power to decide what happens to your KiwiSaver funds and your other important assets. Your KiwiSaver account is in your individual name, and if your balance is $15,000 or more, it will form part of your estate in the event of your death. Your executor will need to apply for probate before your KiwiSaver provider can transfer your KiwiSaver balance to your estate. The funds will then be distributed according to the wishes in your will. This way, you’re ensuring your loved ones benefit from your hard work.

What happens if you don’t have a will?

Without a will, things get a bit tricky. If your KiwiSaver balance is over $15,000, a court process kicks in, and under the Administration Act 1969 someone will need to be appointed to manage your estate. This could take time and make it more challenging for your family and loved ones to access your KiwiSaver savings. On the other hand, if your balance is under $15,000, your KiwiSaver provider can release the funds to an authorised person, such as a spouse or close family member.

But here’s the key point: a will simplifies everything. It’s a straightforward way to ensure that your KiwiSaver funds—and all your other assets—are handled exactly how you want.

Making a will doesn’t have to be hard or expensive

While many people use a lawyer or trustee company to draft a will there are also a number of more affordable online options available. However, it’s important to ensure your will is properly signed and witnessed – otherwise, it may not be legally valid. You can find out more about making a will by visiting Sorted’s website.

No one likes thinking about their own passing, but planning for the future is one of the most responsible things you can do. Creating a will isn’t just about you—it’s about protecting your family and ensuring your financial legacy supports the people you care about most.

So, if you have KiwiSaver, don’t leave it to chance. Take the time to set up a will and give yourself peace of mind that your hard-earned savings will go to the right place.

DISCLAIMER

This information is provided in a general nature only and should not be construed as or relied on as financial advice. This is not a recommendation to invest in a particular financial product or class of financial products. You should seek financial advice specific to your circumstances from a Financial Adviser before making any investment decisions.

Past performance is not a reliable indicator of future performance. The value of your investment may go up and down.