KiwiSaver Hardship Withdrawal: When and How You Can Access Your Funds Early
Contents (12 sections)
- When can you withdraw KiwiSaver early?
- What counts as significant financial hardship
- Serious illness withdrawal
- How much can you withdraw?
- The application process
- What evidence you need to provide
- How long does it take?
- Other early withdrawal options
- Alternatives to hardship withdrawal
- Worked example: Hardship withdrawal for mortgage arrears
- Common questions
- What to do next
You can withdraw some or all of your KiwiSaver early if you're experiencing significant financial hardship or serious illness (KiwiSaver Act 2006). The application goes through your KiwiSaver provider, not IRD, and you'll need to show evidence that you can't meet minimum living expenses. Most providers process complete applications within 10 to 20 working days.
If you're in this situation, here's exactly what you need to know and what to do.
When can you withdraw KiwiSaver early?
There are four situations where you can access your KiwiSaver before age 65 (KiwiSaver Act 2006, IRD):
| Withdrawal type | When it applies | Who decides |
|---|---|---|
| Significant financial hardship | You can't meet minimum living expenses | Your KiwiSaver provider |
| Serious illness | Illness, injury, or disability that permanently prevents work or is likely to result in death | Your KiwiSaver provider |
| Permanent emigration | You're leaving NZ permanently (excluding Australia) | IRD |
| First home purchase | Buying your first home after 3+ years of membership | Your KiwiSaver provider |
This guide focuses on hardship and serious illness withdrawals. For first home withdrawals, see KiwiSaver first home withdrawal.
What counts as significant financial hardship
Your KiwiSaver provider assesses your application against criteria in the KiwiSaver Act 2006. Significant financial hardship means you're unable to meet minimum living expenses. Your provider will consider whether you can't pay for (KiwiSaver Act 2006, s 120):
- Food and other daily necessities for you and your dependants
- Accommodation costs (rent or mortgage payments)
- Essential medical treatment
- Costs related to a disability
- Funeral costs for a dependant
Your provider looks at your total financial picture, not just one bill or expense. They'll consider your income, expenses, assets, and debts. Being behind on a single credit card payment alone is unlikely to qualify. Genuinely struggling to cover rent and food for your family would.
There's no fixed income threshold that automatically qualifies or disqualifies you. Each application is assessed individually by your provider.
Serious illness withdrawal
This is separate from financial hardship. You can withdraw your full KiwiSaver balance if you have a serious illness, injury, or disability that (KiwiSaver Act 2006, s 119):
- Permanently affects your ability to work, or
- Poses a serious and imminent risk to your life
You'll need medical evidence from your doctor or specialist. Your KiwiSaver provider makes the decision based on the medical evidence provided.
A serious illness withdrawal gives you access to your entire balance, including government contributions.
How much can you withdraw?
For a financial hardship withdrawal, you can withdraw enough to cover the specific hardship you're facing. Your provider decides the amount based on what you need to address the hardship (KiwiSaver Act 2006).
There are rules about what comes out and what stays:
| What can be withdrawn | What must stay in your account |
|---|---|
| Your own contributions | $1,000 minimum balance (KiwiSaver Act 2006) |
| Your employer's contributions | Government contributions (member tax credit) |
| Investment returns on the above | Amounts transferred from an Australian super scheme |
For a serious illness withdrawal, you can access your full balance, including government contributions (IRD).
The application process
The application goes through your KiwiSaver provider, not IRD. Here's the typical process:
Step 1: Contact your provider. Call or visit the website of your KiwiSaver provider. Every provider has a hardship withdrawal process. If you don't know who your provider is, check your last KiwiSaver statement or log in to myIR.
Step 2: Complete the application form. Your provider will give you a form asking for details about your financial situation, including income, expenses, assets, and debts.
Step 3: Provide supporting evidence. You'll need documentation to back up your claim. See the evidence section below.
Step 4: Provider assesses the application. They review your evidence against the criteria in the KiwiSaver Act. They may ask for additional documentation.
Step 5: Receive a decision. If approved, your provider tells you how much you can withdraw and processes the payment. If declined, they explain why and you can provide additional evidence or make a complaint.
What evidence you need to provide
The specific documents vary by provider and situation, but expect to provide some or all of the following:
| Situation | Typical evidence required |
|---|---|
| Can't pay rent or mortgage | Tenancy agreement or mortgage statement, arrears notices, 3 months of bank statements |
| Can't afford food or essentials | Bank statements (typically 3 months), evidence of income, household budget |
| Medical costs | Medical bills or quotes, letter from medical provider, evidence costs aren't covered by insurance or public health |
| Funeral costs | Invoice or quote from funeral director, death certificate |
| Serious illness | Medical certificate from your doctor or specialist, letter confirming prognosis |
| General financial hardship | Budget breakdown, evidence of debts, proof of income (payslips or benefit statements), evidence of any assets |
Most providers ask for at least 3 months of bank statements. Be prepared to show a full picture of your financial situation.
How long does it take?
Processing times vary by provider, but here's what to typically expect (based on major NZ KiwiSaver provider disclosures):
| Stage | Typical timeframe |
|---|---|
| Submit application | Day 1 |
| Provider reviews and may request more information | 5 to 10 working days |
| Decision made | 10 to 15 working days from complete application |
| Payment processed after approval | 5 to 10 working days |
Total time from application to receiving funds is typically 10 to 20 working days if your application is complete. Incomplete applications take longer because the provider has to come back to you for missing information.
If you need funds urgently, tell your provider when you apply. Some providers have expedited processes for urgent cases.
Other early withdrawal options
If hardship withdrawal doesn't apply to your situation, there are other ways to access KiwiSaver early:
Permanent emigration. If you're leaving NZ permanently (to anywhere except Australia), you can withdraw your full KiwiSaver balance after being overseas for 12 months. You apply through IRD, not your provider. Government contributions are returned to the Crown (IRD).
First home purchase. If you've been a KiwiSaver member for at least 3 years, you can withdraw most of your balance (minus $1,000 and the government contributions) to put towards buying your first home. See KiwiSaver first home withdrawal.
Savings suspension. If the issue is that you can't afford your current contributions rather than needing to access savings already in the account, you can apply for a savings suspension through myIR. This pauses your contributions for 3 months to 1 year. See KiwiSaver contribution rates for more detail.
Alternatives to hardship withdrawal
Before applying, it's worth knowing about other options that might help:
- Savings suspension. Pauses contributions so more of your pay reaches your bank account. Apply through myIR after 12 months of membership (IRD).
- Reducing your contribution rate. Dropping from 6% or 8% to the minimum rate (3%, rising to 3.5% from April 2026 and 4% from April 2028) increases your take-home pay immediately. See KiwiSaver contribution rates.
- Government support. Work and Income provides financial assistance for housing, food, medical costs, and emergencies. Call 0800 559 009 or visit workandincome.govt.nz.
- MoneyTalks. Free, confidential financial helpline run by FinCap. Call 0800 345 123, text 4029, or visit moneytalks.co.nz. They can help you work through your options.
- Citizens Advice Bureau. Free guidance on financial and legal issues. Visit cab.org.nz or call 0800 367 222.
- Budgeting services. Free budgeting support through community organisations. MoneyTalks can connect you with a local service.
These alternatives don't require giving up retirement savings, which continue to grow through employer contributions, government contributions, and investment returns while they stay in your account.
Worked example: Hardship withdrawal for mortgage arrears
Sarah earns $55,000 per year and has a KiwiSaver balance of $38,000. After her partner lost their income due to illness, she's fallen 3 months behind on mortgage payments ($6,600 in arrears) and is at risk of losing her home.
She contacts her KiwiSaver provider and provides:
- 3 months of bank statements showing the household income drop
- Mortgage statement showing arrears of $6,600
- Letter from the bank warning of potential mortgagee sale
- Evidence of her current income and expenses
Her provider approves a withdrawal of $6,600 to clear the arrears. Her remaining KiwiSaver balance drops to $31,400. She still has more than $1,000 in the account, and government contributions remain untouched.
The withdrawal is processed and she receives the funds in her bank account within 15 working days of the complete application.
Common questions
Can I withdraw my KiwiSaver for financial hardship?
Yes, if you're experiencing significant financial hardship, meaning you can't meet minimum living expenses for yourself or your dependants. You apply through your KiwiSaver provider with supporting evidence. The provider decides whether your situation meets the criteria in the KiwiSaver Act 2006 (IRD).
How long does a KiwiSaver hardship withdrawal take?
Typically 10 to 20 working days from submitting a complete application. If your provider needs more information, it takes longer. If you need funds urgently, let your provider know when you apply, as some offer expedited processing.
Can I withdraw all my KiwiSaver for hardship?
Not usually. For financial hardship, your provider determines the withdrawal amount based on your specific need. You must keep at least $1,000 in your account, and government contributions (member tax credit) can't be withdrawn for hardship. For serious illness, you can access your full balance including government contributions (KiwiSaver Act 2006).
What evidence do I need for a KiwiSaver hardship withdrawal?
At minimum, expect to provide bank statements (typically 3 months), evidence of income, a budget showing your expenses, and documentation specific to your hardship (e.g., mortgage arrears notice, medical bills, overdue rent). Your provider will tell you exactly what they need.
Does my KiwiSaver provider have to approve a hardship withdrawal?
Your provider makes the decision based on the criteria in the KiwiSaver Act 2006. They must assess your application, but they're not required to approve it. If you disagree with their decision, you can complain to your provider first and then to the financial dispute resolution scheme they belong to (FMA).
Can I apply for hardship withdrawal if I'm on a benefit?
Yes. Being on a benefit doesn't disqualify you. In fact, low income from a benefit combined with high essential costs may strengthen your case for significant financial hardship. Provide your benefit statement as evidence of income.
Is a KiwiSaver hardship withdrawal taxed?
No. KiwiSaver withdrawals are not subject to income tax in New Zealand, whether it's a hardship withdrawal, retirement withdrawal, or first home withdrawal (IRD).
Can I withdraw KiwiSaver if I have a serious illness?
Yes. If you have a serious illness, injury, or disability that permanently prevents you from working or poses a serious risk to your life, you can apply through your provider with medical evidence. A serious illness withdrawal gives you access to your full balance, including government contributions (KiwiSaver Act 2006).
What happens to my KiwiSaver after a hardship withdrawal?
Your KiwiSaver account stays open. If you're still employed, contributions continue from your wages. The withdrawn amount no longer earns investment returns, so your retirement balance will be lower. Employer contributions and government contributions continue as normal on new contributions.
Can I make a second hardship withdrawal?
Yes, there's no limit on the number of hardship withdrawal applications. Each one is assessed independently. If your circumstances change and you face hardship again, you can apply again, provided your remaining balance is above $1,000 and the situation meets the criteria (KiwiSaver Act 2006).
What to do next
- Check your KiwiSaver balance and provider on myIR if you're unsure who manages your fund
- Explore KiwiSaver contribution rates if reducing contributions might ease financial pressure
- Compare KiwiSaver funds to make sure your remaining balance is in the right fund
- Call MoneyTalks on 0800 345 123 for free, confidential financial guidance
Last updated: 1 March 2026. Sources: IRD (ird.govt.nz), KiwiSaver Act 2006, FMA (fma.govt.nz). This is financial information, not financial advice.
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This is educational content, not financial advice.