What to do with your KiwiSaver account if you’re facing unemployment
Facing unemployment and have a KiwiSaver account? Here are some important things to think about.
3 minute read
If you're facing the prospect of unemployment, your KiwiSaver account may be the last thing on your mind. But there are a few things you may want to consider.
Potentially make some voluntary contributions to your KiwiSaver account
Being unemployed means you won’t be receiving employer contributions into your KiwiSaver account anymore – or making your own from your salary or wages. But if, after looking at your situation, there’s any way you can put even a little into your KiwiSaver account during these times, it could make a big difference to your retirement.
Maximise the Government’s contribution
If you’re eligible to receive Government contributions and can manage to contribute $1042.86 each year (1 July to 30 June), you’ll receive the full Government contribution of $260.72. Even if you can’t contribute all of that, for every dollar you put in, the Government will give you 50 cents (up to $260.72). Find out more about the Government contribution, and if you qualify.
Hardship withdrawals
Generally, you can only withdraw money from your KiwiSaver account after you’ve turned 65. However, if you can show you’ve gone through all other sources of funds, then as a last resort you can apply for a significant financial hardship withdrawal. Find out more about KiwiSaver significant financial hardship withdrawals.
Check your choice of fund
Depending on how long you have until retirement age, and how you’re feeling about financial risk, you might want to check that your choice of fund type is still appropriate for your situation.
Talk to your bank
In difficult financial times, it makes sense to talk to your bank about any assistance they can provide. BNZ, for example, has a number of support options that could be worth exploring.
If you’ve got a home loan with BNZ and you’re experiencing financial difficulties, you may be able to apply for a hardship variation, which is a change to the conditions of your loan. Find out more about financial hardship support.
There's also free budgeting information at Money Talks or Sorted.
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BNZ Investment Services Limited, a wholly owned subsidiary of Harbour Asset Management Limited, is the Issuer and Manager of the BNZ KiwiSaver Scheme. Download a copy of the BNZ KiwiSaver Scheme Product Disclosure Statement PDF 1.1MB, or pick up a copy from a BNZ branch.
Investments in the BNZ KiwiSaver Scheme are not bank deposits or other liabilities of Bank of New Zealand (BNZ) or any other member of the National Australia Bank Limited group. They are subject to investment risk, including possible delays in repayment. You could get back less than the total contributed. No person (including the New Zealand Government) guarantees (either fully or in part) the performance or returns of the BNZ KiwiSaver Scheme or the repayment of amounts contributed. National Australia Bank Limited, the ultimate owner of BNZ, is not a registered bank in New Zealand but a licensed bank in Australia and is not authorised to offer the products and services mentioned on this webpage to customers in New Zealand.
BNZ Investment Services Limited (BNZISL) uses the BNZ brand under licence from Bank of New Zealand, whose ultimate parent company is National Australia Bank Limited. No member of the FirstCape group (including BNZISL) is a member of the NAB group of companies (NAB Group). No member of the NAB Group (including Bank of New Zealand) guarantees, or supports, the performance of any member of FirstCape group’s obligations to any party.
This article is solely for information purposes and is not intended to be financial advice. If you need help, please contact BNZ or your financial adviser. Neither BNZ nor any person involved in this article accepts any liability for any loss or damage whatsoever which may directly or indirectly result from any information, representation, or omission, whether negligent or otherwise, contained in this publication.