Hard times push growing numbers to use KiwiSaver cash

It is a regular thing people do. They are looking at it and might have $ 30k and think I need that money now.

Over 15,000 Kiwis have made more than one withdrawal from their KiwiSaver account for hardship reasons since the scheme began.

Figures from the Inland Revenue show 15,081 members have been forced to dip into their retirement savings on multiple occasions because of financial hardship in the last 10 years.

A total of 60,495 hardship withdrawals have been made since KiwiSaver began in July 2007 with $ 272 million withdrawn.

While it’s only a small proportion of the 2.7m in KiwiSaver the number of people applying is growing.

In May more than 1500 people took $ 9.2m out of the scheme — the biggest monthly withdrawal so far.

Those applying for hardship must meet strict criteria, including having to show they are unable to meet dayto- day living expenses or make mortgage repayments on their home to the point where the funder is calling in the loan.

June- Lily Holyoake, manager of the Pakuranga and Howick Budgeting Service, said a lot of people were asking how to get access to their KiwiSaver money.

“It is a regular thing people do. They are looking at it and might have $ 30k and think I need that money now.”

Holyoake said that those people were struggling now to put food on the table and pay their rent and were not thinking about their retirement.

But she said KiwiSaver should be people’s last port of call.

Holyoake said those who took their KiwiSaver money out now potentially faced a tough retirement and may have to work longer.

She said one option was for people to take a contribution holiday but some got into a bad position by contributing to KiwiSaver while their debts continued to pile up.