Early savings access automatic for some disorders
People with Down syndrome, cerebral palsy, Huntington’s disease and fetal alcohol spectrum disorder who have a shorter life expectancy will automatically be able to withdraw their savings early from KiwiSaver under new rules from next month.
The Government announced the list of life-shortening conditions which guarantee early withdrawal yesterday following consultation with health and disability experts.
From March 26, people with the four most common conditions will be automatically entitled to apply to withdraw from their fund at a time that is right for them to retire, rather than once they turn 65.
Other people with rarer conditions will still be able to withdraw their KiwiSaver funds early but will need verification from a medical practitioner.
The move follows a campaign for fairer access to KiwiSaver by Joan Fairhall and son Tim, who has Down syndrome and wanted to withdraw the funds he had saved up from his supermarket job to visit his brother and best friend who are overseas.
Their advocacy led to a law change in 2019 which enabled early access to KiwiSaver for people with congenital lifeshortening conditions.
‘‘The Government wants KiwiSaver to work for all New Zealanders but some people are born with medical conditions that shorten their lifespan,’’ said Commerce and Consumer Affairs Minister David Clark. ‘‘Their condition means they might not live to 65. It is only right that we are moving to make KiwiSaver fairer for all New Zealanders.’’
Clark thanked Tim Fairhall who was at the announcement at the IHC national office in Wellington,
for his ‘‘tireless advocacy’’ on the issue, which led to the KiwiSaver changes.
Fairhall, 41, thanked the Government for listening to him and his mum, and making the change happen. ‘‘It is so awesome,’’ he said. ‘‘I have plans for my KiwiSaver money. I want to use my savings to see my brother Scott in Italy and see my friend Thomas in Canada.’’ He planned to pursue his travel dreams when Covid was over.
Clark said some people had already applied successfully to retire early since the law change, although he expected it would affect only a relatively small number of the 3 million people in KiwiSaver.