KiwiSaver withdrawal: Looming redundancy, separation not good enough reasons
Financial Services Complaints Ltd has highlighted several cases where individuals were denied KiwiSaver withdrawals due to misunderstandings of hardship criteria. The cases underscore the strict legal requirements for accessing retirement savings early.
Why it matters
Public confusion regarding financial hardship withdrawals can lead to significant personal financial distress and legal disputes.
A man who tried to withdraw money from KiwiSaver because he expected to be made redundant, and another who wanted to access his KiwiSaver to buy his ex-wife out of the family home without a separation agreement are just two of what providers say is likely to be a significant number of people confused about when they can tap into their investments.
The article presents a balanced view of consumer complaints and the regulatory requirements governing financial institutions.
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