Nearly 11,000 early KiwiSaver withdrawals in March saw the value withdrawn reach a new monthly high of more than $296 million, with just over half of withdrawals due to financial hardship.
The March dollar value topped the previous high, last November, when the value withdrawn hit $255.3 million.
The number of total early withdrawals in March also hit a record high of 10,990 as KiwiSaver members took out a total of almost $296.7 million. Of the 10,990 early withdrawals, 5610 were for financial hardship, while 5380 were for first home purchases.
By value, first home buyers pulled out a lot more money than those feeling financial hardship. March withdrawals for financial hardship totalled $49.2 million, while the withdrawals for first homes reached $247.47 million.
The figures come from Inland Revenue (IRD), which rounds the number of KiwiSaver fund withdrawals up to the nearest 10.
People usually 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 March, there were 82,895 savings suspensions, which is when people temporarily stop their contributions. Of those, 1120 stopped because of financial hardship.
As of March, 828,977 members had their accounts closed or chose to opt out of KiwiSaver. Of this, 639,810 members had closed their accounts while 189,167 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 schemes, 640,927 people were in default allocated schemes, 207,171 were in employer nominated schemes and 2,589,410 had actively chosen their schemes in March.
At 762,176, the 35 to 44 age demographic had the largest number of KiwiSaver members. The 25 to 34 age category follows with 734,243 members.
During March, 5121 people became active or provisional (you have eight weeks before you can choose to opt out) KiwiSaver members. There are a total of 3,448,750 active or provisional KiwiSaver members, IRD data shows.
7 Comments
Well the headline leans hardship but the moolah leans housing
$247m first home withdrawals vs $49m hardship.
KiwiSaver looks more like a housing deposit scheme with a side serving of emergency relief
We should lament, that so many Kiwis are enabled to raid their retirement saving scheme accounts, to buy into an already overpriced housing market. Even though many values have dropped a real -15 to -45% over the last 5 years, imho values still have some way to fall in 2026/2027/2028.
BRIEF HISTORY:
As home values leapt much higher and far outstripped average annual earning rises/capacity since the 1990s, the ballooning deposit volumes required, were crimping FHBs ability to buy into starter housing.
In from stage right: -
KiwiSaver withdrawals for first home buyers
So, the already heavily housing invested politicians (JK and many Nats in power) and FIRE industry, changed the law in 2015 and that enabled the NZ housing PONZI to keep humming and the fire burning, to build this Ponzi higher into the sky, yet built on a foundation of ever dryer wicker and dry kindling.
Ole JK/Nats wanted and plotted the Ponzi still higher and higher....... and so be it, for a time.
Yet an unstoppable wicker and kindling fueled, value destruction fire, was just 6 years away, as we are all living through now.
The ability of it to be used to pay the large deposits, was a good bet, until the Ponzi high tided in 2021 and subsequently firestorm crashed since.
Since then, for many, their entire KS deposits have been wiped out and even eaten into the bank's equity.
This has been disastrous for personal wealth and concerning for general AU/NZ banking stability.
Many stressed sellers have lost it all.
I wonder how many hardship withdrawals, are from previous home deposit withdrawers?
Given the rise and now re-rise of interest rates since 2021, along with the largest CPI rises in many years, this must be a growing subset group of DoubleDippees of KS "retirement funds" - for overpriced house holding and cost of living hardship.
Using KS for home deposits and/or final settlements should be stopped, to save the financially unsophisticated from themselves. This especially so, given the still rampant overvaluations of NZ housing, verse any cost or earnings measure you care to look at.
Take care KS people, betting it all on NZ property, can be very risky business.
Jeeeez looks like you're debating what KiwiSaver should be
Bit of carry on there to dodge a pretty simple March stat line
Looks like $247m deposits vs $49m hardship.
It's a "RETIREMENT FUND" to be taken when you stop working/65yo. No debate on what it was designed as.
- Not a last prop, to hold a fraying and late stage, dying Ponzi intact, while the insiders exit:
https://www.nzherald.co.nz/business/sir-john-keys-house-finally-sold-fo…
It's obvious the NZ housing Ponzi is now an emaciated skeleton, of its former self.
Not that simple
If KiwiSaver helps someone buy earlier, they may spend fewer years renting and reach retirement owning a home instead of paying market rent.
That can be a better retirement outcome than a bigger balance on paper
So pump your good returning KS into a historically high Bubble housing asset, is a great idea?
Many have lost (KS) it all, when forced to sell, in recent years. Great move?
For the previous TPTB, to engineer a dry kindling Ponzi prop, that has now burnt away uncontrollably, was unforgivable.
Each to his own and financially live or wither by the results. Lots be a withering today and future years.
- keep up your interested support for it, if you must.
I advise others to think on it.......
Ahh right, another Bubble Ponzi Firestorm edition
Anyway, some buyers do better owning than renting longer.
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