Significant financial hardship withdrawal
A KiwiSaver scheme early-withdrawal ground for members suffering severe financial hardship — minimum-living-costs, mortgage default, medical, funeral expenses — subject to supervisor approval.
Significant financial hardship is a statutory ground under Schedule 1 of the KiwiSaver Act 2006 that allows an early withdrawal from a KiwiSaver scheme before the standard retirement-age access point. The grounds include inability to meet minimum living expenses, imminent mortgage default on a primary residence, modification costs for a serious disability, medical treatment for the member or a dependant, and funeral expenses of a dependant.
Hardship withdrawals are administered by the scheme supervisor (not the manager) and require the member to demonstrate that the hardship is significant and that reasonable alternative sources of funds have been explored. The supervisor decides what portion can be withdrawn — usually the minimum needed to alleviate the hardship rather than the full balance.
Member contributions and employer contributions are accessible under hardship; government contributions are not. The withdrawal does not require the member to stop contributing or to close the account.
Primary sources
Related terms
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kiwisaver-vs-managed-fund
KiwiSaver scheme vs managed fund
A KiwiSaver scheme fund is a tax-advantaged retirement savings product with employer/government contributions and lock-in until age 65. A managed fund has no lock-in and no contribution incentives — but lets you withdraw at any time.
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MIS supervisor · Trustee
Supervisor
A licensed independent entity that holds the assets of a managed-investment scheme in trust and supervises the manager's compliance with the SIPO and FMC Act.