Locals tap KiwiSaver
People struggling to cope with increasing living costs are increasingly turning to their KiwiSaver accounts in a bid to stay afloat.
Nelson Budget Service had seen a ‘‘significant’’ spike in people applying to access their KiwiSaver fund early, service co-ordinator Tessa Bell said.
‘‘It’s the only money that a lot of people can access.’’
KiwiSaver accounts can be accessed early if significant financial hardship is proven, including struggling to meet living and housing costs.
While it wasn’t ideal to access funds earmarked for retirement, for many it was the best alternative to taking out a high-interest loan to meet living expenses, she said.
‘‘It’s the best option for them because it’s not got interest, and it’s just sort of sitting there.’’ At times, every client had been asking about KiwiSaver, she said.
‘‘When someone’s really overwhelmed they’re looking for an answer – and sometimes that’s the only answer.’’
The shift comes as the cost of living soars, with Stats NZ reporting a 6.9% annual jump in the consumer price index in April, which took inflation to a new 31-year high, driven largely by the cost of housing.
The prices of goods and services – which include commodities such as petrol – rose 8.5% over the year.
Bell said people from all walks of life