Commissioner asks: Does it need to get tougher to withdraw money from KiwiSaver?
New Zealand's Retirement Commissioner is investigating whether criteria for KiwiSaver hardship withdrawals have become too lenient. With nearly $1.8 billion withdrawn since 2012, officials are concerned about the long-term impact on retirement savings.
Why it matters
Rising hardship withdrawals threaten the financial security of future retirees and highlight the strain of the current cost-of-living crisis.
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New Retirement Commissioner David Boyle is seeking information on whether it is possible to tackle unnecessary KiwiSaver hardship claims.
Almost $1.8 billion was withdrawn from the scheme for hardship reasons between 2012 and 2025. Of that, about $1.32b was withdrawn since 2020.
Hardship applications can be made in situations where members are struggling to cover their basic costs . The application is initially processed by the KiwiSaver provider but the decision is made by the KiwiSaver scheme's supervisor.
The number and amount of withdrawals slowed in August but commentators said that was likely to be shortlived, particularly in the run-up to Christmas.
Boyle, who was previously head of KiwiSaver at Fisher Funds, said he wanted more information about what was happening.
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