Early KiwiSaver withdrawals in October hit a new monthly record high.
Data from the Inland Revenue Department (IRD) breaks down early withdrawals made by people buying their first homes and/or those experiencing financial hardship. KiwiSaver members can withdraw funds under both categories within the same period.
In October, KiwiSaver members made 9950 withdrawals totalling $246,984,080.
October’s total early withdrawal figure surpasses September’s figure of $234,120,918 and July’s previously monthly record high of $234,851,774.
Data on October’s KiwiSaver figures show about 5520 withdrawals were made because of financial hardship, totalling $49,414,445 while 4430 withdrawals were made for first homes, totalling $197,569,634.
For the number of KiwiSaver fund withdrawals, IRD rounds up to the nearest 10.
People can withdraw money from their KiwiSaver when they reach 65, which is retirement age, but you can also apply for early withdrawals to buy your first house or because of financial hardship.
In October, there were 82,991 savings suspensions when people temporarily stop their contributions. Of those, 1069 stopped their contributions due to financial hardship.
As of October, 809,355 members had their accounts closed or chose to opt out of KiwiSaver. Of this, 621,737 members had closed their accounts, while 187,618 chose to opt out.
Members usually have their accounts closed because of death, permanently leaving the country, retirement, serious illness or other reasons.
When it came to KiwiSaver scheme entry methods, 644,476 people were in default allocated schemes, 208,486 were in employer nominated schemes and 2,558,915 had actively chosen their schemes in October.
At 748,847 the 35 to 44 age demographic had the largest number of KiwiSaver members. The 25 to 34 age category follows with 737,041 members.
During October, 5318 people became active or provisional (you have eight weeks before you can choose to opt out) KiwiSaver members. There are a total of 3,421,085 active or provisional KiwiSaver members, IRD data shows.
KiwiSaver rules
Following this year’s Budget, changes were made to KiwiSaver.
People aged 16 and 17 are now eligible for KiwiSaver so they can access employer and government contributions.
The Government’s contribution rate has dropped to 25 cents for each dollar a member contributes. This was previously 50 cents for each dollar, which meant receiving a maximum government contribution of $521.43.
To get the Government’s full contribution now, which is $260.72, people need to put in at least $1042.86 of their own money between July 1 to June 30 each year.
Alongside this, people with an income of more than $180,000 will no longer receive the government contribution.
Employer and employee contribution rates will increase to 3.5% from April 2026. This will move to 4% in April 2028. It’s currently at 3%. KiwiSaver members can choose to stay at the current 3% rate and still be matched at this rate by their employer.
2 Comments
I'm not sure the amount is that meaningful on its own, it would probably grow as people's total funds grow regardless of other factors.
Maybe the withdrawal to total funds ratio would be a more useful metric.
well there will less to withdraw soon enough
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