The short answer is yes – if you are experiencing significant financial hardship as defined by Inland Revenue, you may be able to withdraw your KiwiSaver money. The only thing you can’t withdraw is any government money that has been added.
Significant financial hardship includes when you:
- cannot meet minimum living expenses
- cannot pay the mortgage on the home you live in
- need to modify your home to meet your special needs or those of a dependent family member
- need to pay for medical treatment for yourself or a dependent family member
- have a serious illness
- need to pay funeral costs of a dependent family member
Contact your scheme provider for the correct form to make a hardship withdrawal application. To withdraw funds, you will need to provide evidence you are suffering significant financial hardship.
Another option to avoid withdrawing fund you could benefit from in the future, is taking a savings break.
Savings Break means temporarily stopping your contributions to your KiwiSaver if you have had a change of circumstances.
To be able to qualify you need to have been in KiwiSaver for a year or more. The savings suspension can be 3 months to 1 year. You do not need to give a reason and you can have as many savings suspensions as you want. While you are on a savings suspension you will not get employer contributions unless your employment agreement states otherwise.
If you have any questions or need assistance, please get in touch. We are here to help.