Financial - Hardship, Do I use my Kiwisaver?
If you are facing financial hardship in New Zealand, there are several options available to you. One option is to consider applying for a hardship withdrawal from your KiwiSaver account.
A hardship withdrawal from KiwiSaver allows you to access some of your savings before you reach the age of 65, provided you meet certain criteria. To be eligible for a hardship withdrawal, you must meet one of the following criteria:
You are experiencing significant financial hardship, such as being unable to meet your basic living expenses or facing a serious illness or disability.
You are facing significant hardship due to the fact that you are unable to meet your mortgage payments, and the property you live in is being sold to repay the mortgage.
If you meet one of these criteria, you can apply to your KiwiSaver provider for a hardship withdrawal. You will need to provide evidence of your financial hardship, such as bank statements, bills, and medical reports. Your provider will review your application and determine whether you meet the eligibility criteria.
It's important to note that a hardship withdrawal from KiwiSaver should be considered a last resort, as it will reduce your retirement savings. You should also be aware that there are limits on the amount you can withdraw, and you may be required to pay tax on the amount you receive.
If you are experiencing financial hardship, there are also several other options available to you:
Seek assistance from the government: You may be eligible for financial assistance from the New Zealand government, such as the Jobseeker Support benefit, the Accommodation Supplement, or the Disability Allowance. You can find more information on these benefits on the Work and Income website.
Contact a budgeting service: There are several budgeting services available in New Zealand that can provide you with advice and support on managing your finances. These services are typically free and can help you create a budget, negotiate with creditors, and develop a plan to reduce your debt.
Talk to your creditors: If you are struggling to meet your financial obligations, it may be possible to negotiate with your creditors to reduce your payments or temporarily defer them. It is important to contact your creditors as soon as possible to explain your situation and discuss your options.
Consider debt consolidation: If you have multiple debts with high interest rates, consolidating them into a single loan with a lower interest rate may make it easier for you to manage your payments. However, it is important to be cautious when considering debt consolidation, as some providers may charge high fees and interest rates.
Seek financial counseling: If you are struggling with debt or financial stress, it may be helpful to seek the assistance of a financial counselor. These professionals can provide you with personalized advice on managing your finances and reducing your debt.
Remember that financial hardship can be a difficult and stressful situation, but there are resources and support available to help you through it.
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