It's important to understand that an early withdrawal will make a significant impact on your long-term KiwiSaver savings.
To give you an idea, Sorted NZ share an example of a 35 year old who currently has $22,000 in a KiwiSaver growth fund, who withdraws $20,000. By the age of 65, they would end up having $74,000 less, and even when you adjust for inflation over that 30 years at 2%, it would still be $41,000 less. That is a massive loss for your retirement savings.
If you would like to see how an early withdrawal would impact your future KiwiSaver savings, check out our KiwiSaver calculator, go through the steps and enter in your current balance. See what you're currently on track to receive for your retirement, and then reduce the balance by the amount you want to withdraw and see the impact.
Significant financial hardship is a situation in which a person can't keep up with payments and bills to meet minimum living expenses.
Significant financial hardship can include when you:
Here are some of the commonly asked questions our customers have when thinking about applying for an early withdrawal from their KiwiSaver.
You'll need to provide evidence you're suffering significant financial hardship and that you have tried to use all other reasonable options available to you to meet your shortfall in funds.
In your application you'll need to provide us documents to support that you explored all other avenues for debt assistance or restructure, even if you think you won't be able to get any help.
If your financial hardship is likely to continue, you may wish to apply for a savings suspension through Inland Revenue. A savings suspension allows you to take a break from making contributions to your KiwiSaver to help you meet your on-going living expenses. The form is available here.
[COVID restrictions only]
A Statutory Declaration under the Oaths And Declarations Act 1957 that is made in New Zealand must be taken by a person described in section 9 of the Act, including:
Statutory Declaration made outside New Zealand
A Statutory Declaration made in a Commonwealth country other than New Zealand can be made before a Judge, a Commissioner of Oaths, a notary public, a Justice of the Peace, a Commonwealth representative, a solicitor of the High Court of New Zealand or any other person authorised by the law of that country to administer an oath for a judicial proceeding. A Statutory Declaration made in a country other than a Commonwealth country can be made before a Commonwealth representative, a Judge, notary public or a solicitor of the High Court of New Zealand.
We understand some documentation may be difficult to provide in the current situation, please see our FAQs where relevant. Please include in your application reasons why you may not have been able to provide any of the documentation requested. We are here to help and will work with you on your options depending on your situation. [Covid restrictions only].
It's important to understand if your application is accepted, you can only withdraw from your and your employer's contributions (not any government contributions), and the amount you can withdraw may be limited to the amount that the Supervisor believes is required to meet your hardship requirements. Generally, this will be up to 13 weeks' worth of your minimum living expenses.
If you've read this page and think you qualify for significant financial hardship, please call us for the ASB KiwiSaver Scheme Financial Hardship form on 0800 ASB RETIRE (0800 272 738).
Step 1: Carefully complete the application form. Be sure to not leave anything out.
Step 2: Get all your supporting documents together. Leaving things out will slow down your application, as we'll have to come back to you for more information, or your application may be declined.
Step 3: Take your completed application to a Justice of the Peace, Solicitor, Notary Public, or other authorised person. You'll need to sign the Statutory Declaration in their presence, and they will witness it. We understand this may be difficult in the current circumstances, see our FAQs for how to complete your Statutory Declaration while there are COVID restrictions.
Step 4: Send your application to us (the address is on the back of the form) or drop into any ASB Branch, and make sure you include all the supporting documentation.
Step 5: We'll assess your application and contact you if we require anything further.
Provided we have all the information we need, and we don't have to come back to you for more, you should have an answer within 15 business days from the date we receive your application.
Step 1: You have carefully completed your application and provided all relevant supporting evidence of your financial situation so that we can make a full assessment.
Step 2: We work through your application to ensure all evidence has been supplied and prepares a financial summary of your application.
Step 3: Application is sent to the Supervisor.
Step 4: The Supervisor reviews the full application and the summary to make their decision.
Step 5: Supervisor provides their approval or decline, or they may ask for further information.
Step 6: We'll send you a letter to confirm the result of your application and if approved, we make the payment.
Interests in the ASB KiwiSaver Scheme (Scheme) are issued by ASB Group Investments Limited, a wholly owned subsidiary of ASB Bank Limited (ASB). ASB provides Scheme administration and distribution services. No person guarantees interests in the Scheme. Interests in the Scheme are not deposits or other liabilities of ASB. They are subject to investment risk, including possible loss of income and principal invested. For more information see the ASB KiwiSaver Scheme Product Disclosure Statement available from this website and the register of offers of financial products at www.disclose-register.companiesoffice.govt.nz (search for ASB KiwiSaver Scheme).