The Window Is Narrow and It Starts on Day 14
Opting out is the one path out of KiwiSaver that does not require a reason, does not require 12 months of membership, and does not depend on hardship. But it is only available in a short window, and only to people who were automatically enrolled.
You can opt out on or after day 14 and on or before day 56 of starting the new employment. In weeks, that is week 2 through week 8. You cannot opt out in the first 13 days — the law deliberately forces a cooling-off period so new members see at least two payslips with contributions on them before deciding.
Two consequences follow from that design:
- You must opt out again every time you start new employment and are enrolled again. Opting out once does not exempt you from future automatic enrolment.
- The clock runs from the employment start date, not from the date you noticed the deduction on your payslip.
Who Cannot Opt Out
The opt-out right belongs to automatically enrolled members. It is not available if you:
- chose to opt into KiwiSaver — by completing a deduction form for an employer or by signing up directly with a scheme provider;
- were already a member and simply changed jobs;
- are past day 56, unless Inland Revenue approves a late opt-out (see below).
This is a common misunderstanding. People sometimes assume "eight weeks to change my mind" applies to KiwiSaver generally. It does not: it applies to automatic enrolment in a new job. If you opted in deliberately, the honest position is that you cannot opt out — the route available after 12 months of contributing membership is a savings suspension.
The KS10 Form
The opt-out request is made on a KS10 form, which Inland Revenue also offers as an online form. You have two ways to lodge it:
- Give the completed form to your employer. This stops deductions immediately and is the faster route for getting your money back, because an employer who has not yet passed the deductions through to Inland Revenue can refund them directly rather than waiting for the Inland Revenue process.
- Send the form to Inland Revenue. Contributions already forwarded are refunded through Inland Revenue.
Your employer keeps a copy for their records, and if they file by paper they send a copy to Inland Revenue with the next employment information return.
What Happens to the Money
| Contribution | What happens on a valid opt-out |
|---|---|
| Your own contributions deducted from pay | Refunded to you |
| Your employer's contributions | Refunded to your employer |
| Employer superannuation contribution tax (ESCT) | Not your money to reclaim — it is part of the employer's refund |
| Government contribution | Not earned, because the contributions on which it is calculated are refunded |
| Your KiwiSaver membership | Ends for that enrolment, but you can opt back in later |
It is worth being clear about the employer contribution point. The 3.5% your employer put in was never yours to keep if you opt out — it goes back to the employer. So the real cost of opting out is not just your own contributions; it is the employer match and any government contribution for that period as well.
Late Opt-Outs
After day 56, a request becomes a late opt-out. That is a request Inland Revenue can approve, but only in some situations, and you have to apply — by post or online. Do not assume a late opt-out will be granted, and do not simply stop paying attention to the account hoping it will resolve itself.
If you think you have missed the window, the practical question changes: rather than trying to undo the enrolment, look at the alternatives below.
Minors Who Were Incorrectly Enrolled
The KS10 also covers a specific situation: a minor who was enrolled in KiwiSaver without the consent of a parent or legal guardian. A person under 16 may be able to opt out with the consent of a legal guardian; someone aged 16 to 18 can opt out without a guardian's consent if they were enrolled without consent. The form asks for the reason, and written guardian consent is required where applicable.
What To Do Instead of Opting Out
If the opt-out window has closed, or you opted in and cannot opt out, three quieter options remain:
| Option | What it does | When it fits |
|---|---|---|
| Savings suspension | Stops contributions for 3–12 months; no reason needed after 12 months of contributing membership | You need the cash now and are prepared to lose the employer contribution for the period |
| Temporary rate reduction to 3% | Lowers your own deduction for 3–12 months while the full employer contribution continues | You want relief but want to keep the free money |
| Lower your rate and top up in June | Keeps you at the 3.5% minimum, then a voluntary contribution before 30 June captures the government contribution | You want to stay in, but at the smallest sustainable cost |
For most people who are uncomfortable with the deduction, the temporary rate reduction or the minimum rate is the better answer than leaving altogether, because the employer's 3.5% continues either way.
Can You Come Back?
Yes. Opting out does not permanently bar you. You can opt back in later by giving your employer a KiwiSaver deduction form or by joining directly through a scheme provider. If you are not in a job that makes deductions — because you are casual, self-employed or between roles — you can still contribute directly to a provider once you are a member.
A Practical Sequence If You Are Inside the Window
- Confirm your employment start date, then count to day 14 and day 56. Mark both in a calendar.
- Complete the KS10 and give it to payroll — ask for confirmation they have received it.
- Check the next payslip to confirm deductions have stopped.
- Confirm with payroll or Inland Revenue how your contributions will be refunded and when.
- If you change your mind afterwards, you can rejoin at any time — but you will need to opt in rather than be enrolled.
Common Mistakes
- Waiting for a third payslip to decide. By then you may be past day 56 and looking at a late opt-out.
- Assuming the opt-out lasts. New job, new enrolment, new opt-out.
- Expecting the employer's contribution back. It is refunded to the employer.
- Opting out and then leaving the money inactive. Rejoining later restarts the clock on the withdrawal rules that depend on membership.
- Confusing opting out with a savings suspension. They have different windows, different effects, and one of them is almost always still available when the other is not.