KiwiSaver early withdrawal rules super strict

The early withdrawal criteria for KiwiSaver is strict. In some circumstances, Kiwisaver may not be right for you.

KiwiSaver early withdrawal rules super strict

In 2008, Eugene* was automatically enrolled in a KiwiSaver Scheme. At the time of the complaint, Eugene had approximately $8,000 in his KiwiSaver account. When Eugene enquired about accessing his money early, as he would “probably need to retire around the age of 50 because of his [reduced life expectancy]”, his provider told him he didn’t meet the limited KiwiSaver criteria for early withdrawal of funds. Eugene said this was unfair and discriminatory. The KiwiSaver rules are set by legislation and regulations. Under the rules, there are very limited options for early withdrawal. These include purchasing a first home, financial hardship, emigration, serious illness or death. The KiwiSaver provider was allowed to rely on the KiwiSaver rules to decline Eugene’s request for early withdrawal of the funds.

Complaint not upheld.

*Names have been changed.

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