Introducing MoneyTalks

Supporting members in financial difficulty

SuperEasy is here to grow your financial wellbeing but understand that ‘life happens’ sometimes, and things don’t go to plan for our members.

If you are experiencing financial difficulty, SuperEasy has mechanisms to help. However, because KiwiSaver is designed for retirement, the rules for accessing funds early are strict and require specific evidence.

It is important to understand that pausing or withdrawing Superannuation contributions early can have a significant detrimental effect on your future savings. We recommend trying to keep your balances intact if you possibly can. Withdrawals should be an absolute last resort.

Here are the most common ways to address financial difficulty through SuperEasy KiwiSaver scheme:

Tip: If you are worried about your situation, we recommend calling MoneyTalks (0800 345 123). They provide free, confidential financial mentoring and can help you look at all your options before you dip into your retirement savings. Read more about MoneyTalks here

The answers here focus on the KiwiSaver scheme.

  1. Can I stop my contributions?

Yes. If you are currently employed and struggling with cash flow, you can take a Savings Suspension.

  • If you’ve been a member for 12+ months: You can apply for a suspension of 3 to 12 months for any reason.
  • If you’ve been a member for less than 12 months: You can apply for an “early” savings suspension if you can show you are experiencing (or likely to experience) financial hardship.
  • How to apply: This is done through Inland Revenue (myIR), not your scheme provider.
  1. Can I withdraw my money early?

You may be able to make a Significant Financial Hardship withdrawal. This is considered a last resort by the Government and is only approved if you cannot meet “minimum living expenses.”

  1. What counts as “Significant Financial Hardship (SFH)”?
  • Being unable to pay for basic necessities (food, power, rent, or water).
  • Being unable to meet mortgage repayments on your primary home (where the lender is seeking to enforce the mortgage).
  • Needing to pay for medical treatment or palliative care for yourself or a dependent.
  • Needing to modify your home for a disability.
  • Paying for funeral costs for a dependent.

This benefit entitles you to withdraw up to the full amount of your savings (excluding any Kickstart payment and any accumulated Government Contributions) and allows you to remain a member of the Scheme.

Applying for Significant Financial Hardship

According to the law we will need to be satisfied that reasonable alternative sources of funding have been explored and have been exhausted. We can also direct that the amount withdrawn be limited to a specified amount that, in our opinion, is required to alleviate the hardship.

The Significant Financial Hardship application forms must the forms provided by us and must include a completed statutory declaration covering your assets and liabilities. We also require that any other documents, evidence, or information produced in support of the application are verified by oath or statutory declaration. This amount will be paid to you as a tax paid lump sum.

Contact us for further information.

How much can I withdraw?

If approved, you can typically withdraw your own contributions and your employer’s contributions. You cannot withdraw the Government’s $1,000 kick-start (if you received one) or any annual Government Contributions. The amount is usually limited to what is strictly necessary to alleviate the immediate hardship (often covering a 3-month gap). Sometimes you may be awarded a partial payment, rather than the full amount of your application.

What is the application process?

Applying for a hardship withdrawal is a detailed process that is required by the KiwiSaver Act 2006

  1. Contact SuperEasy: Ask us for the “Significant Financial Hardship Withdrawal” forms.
  2. Gather Evidence: You will need to provide:
  • certified identification, this could be:
    • a copy of a passport; or
    • both a driver’s license (both sides) AND a bank statement or birth certificate.

(any of the documents supplied for identification must be certified by a JP or Solicitor)

  • 3 months of bank statements
  • proof of income
  • copies of overdue bills (Note: supporting documents need to reflect the Assets and Liability section in the application).
  1. Statutory Declaration: You must sign a legal document in front of an authorised witness (like a Justice of the Peace or Solicitor).
  1. Exhaust Other Options: You must show you have tried other avenues, such as talking to your bank, Work and Income (WINZ) or a budget advisor.

How long does it take?

Once you have submitted all the required information, we hope to have assessed and, if successful, paid your withdrawal within 1-4 weeks.

Can I withdraw funds from the SuperEasy Local Government Superannuation Scheme (LGSS)?

In cases of Significant Financial Hardship, member who are still employed at their participating Council can apply to withdraw some funds from their LGSS account. Similar conditions apply to the KiwiSaver process above, however in the case of LGSS, your council management must consent to the withdrawal.

LGSS members who have left employment of the participating council are free to withdraw their LGSS funds. There is a small amount of paperwork to complete, so please contact us at admin@civicfs.co.nz