KiwiSaver funds are locked in to the fund for the long
haul until either 65 or you have been a contributor for five years (whichever
is the later), except in cases of financial hardship, sickness, buying your
first home and moving overseas permanently, where members can apply to the
Trustees of their fund to access some of their fund.
Those affected by the Canterbury earthquakes also have
grounds to apply for relief (a category of financial hardship that has been
specifically added to those previously available). This criteria is added to
the existing list including:
• inability
to meet minimum living expenses; or
• inability
to meet mortgage repayments on the principal family residence resulting in the mortgagee seeking to enforce the mortgage; or
• the
cost of modifying a residence to meet special needs arising from a disability
of a member or a member’s dependant; or
• the
cost of medical treatment for an illness or injury of a member or a member’s
dependant; or
• the
cost of palliative care for a member or a member’s dependant; or
• the
cost of a funeral for a member’s dependent.
How it affects you:
If you are experiencing hardship and have been
contributing to a KiwiSaver scheme you may be able to withdraw all or some of
your contributions from the scheme. The process is quite comprehensive and
requires the applicant to show they have tried other avenues for funding,
completed a statutory declaration about assets & liabilities and provide
any other documents or information to support the application.
The decision with hardship applications is made by the
KiwiSaver Scheme’s independent Trustee and not the Scheme Provider. The KiwiSaver Scheme’s independent Trustee analyses
applications and makes the final decision.
Do not be put off making an application . If you need
help, contact your business advisor or scheme provider for assistance.
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