KiwiSaver Significant Financial Hardship: Who Qualifies and What You Get
Understand the process for accessing your retirement savings early if you are experiencing extreme financial distress in New Zealand.
This scheme allows members to access their retirement savings earlier than planned if they are experiencing extreme financial distress.
Who it's for
This scheme is specifically designed for members who are facing significant financial hardship. It is intended for individuals who find themselves in extreme financial distress and need immediate access to their funds to manage their situation.
What you get
The primary benefit of this scheme is the ability to make an early KiwiSaver withdrawal. This allows you to access the money you have been saving for retirement to help meet urgent financial needs caused by your current circumstances.
What it costs you
While there is no direct fee to apply, the process requires a significant investment of your time and documentation. You will be required to provide official proof of your extreme hardship to your provider. This typically involves submitting evidence that demonstrates your current financial situation and why you are unable to meet your essential needs without these funds.
The catch to know
It is important to understand that this scheme is intended only as a last resort. Because you are taking money out of your retirement fund ahead of schedule, it will directly impact your long-term financial security. Withdrawing these funds early means you will have a smaller balance available to support you once you reach retirement age.
How to apply
- Identify your KiwiSaver provider and contact them to request the specific application forms for a hardship withdrawal.
- Gather all required documentation that serves as proof of your extreme financial hardship.
- Complete the application forms and submit them along with your evidence to your provider.
- Wait for your provider to review your submission and notify you of their decision.