The Covid-19 pandemic has significantly affected the incomes of a great many New Zealanders, says Bernice Mitchell of Stratford Citizens Advice Bureau (CAB).
"We have had a lot of people asking how to withdraw their KiwiSaver money because they are experiencing money problems now. But it's important to know not just what's involved in applying for this, but also what the financial consequences might be."
Bernice says financial hardship is one of the grounds in which you can apply to withdraw your KiwiSaver funds early. However, this should be a last resort, because it means you will have less to live on when you retire. There are other things you should try first.
"For example, if your income is reduced you might be eligible for financial assistance from Work and Income to help cover urgent costs like food, accommodation, and repair of crucial appliances like your fridge or heater.
"If you have debts that you are having problems paying back, it's important to talk to your lender, preferably before you miss any repayments. They might agree to a repayment plan that is manageable for you. The same applies with talking to your power company if you can't pay the power bill."