Quick Answer: Can I Use My KiwiSaver To Clear Debt?

What qualifies as a hardship withdrawal?

A hardship distribution is a withdrawal from a participant’s elective deferral account made because of an immediate and heavy financial need, and limited to the amount necessary to satisfy that financial need.

The money is taxed to the participant and is not paid back to the borrower’s account..

Do credit card debts die with you?

When someone dies, it’s not true that any credit card debts are automatically written off. Instead, any individual debts must be paid using the money the deceased has left behind. Only if there isn’t enough money in the Estate may the debt be written off.

Can you contribute more than 8% to KiwiSaver?

But you can contribute: 3%, 4%, 6%, 8% or 10% of your before tax pay. If you haven’t chosen a contribution rate, by default, you’ll get signed up to the minimum level of 3%. By increasing your contribution rate, you can add thousands to your KiwiSaver account balance.

Can you close your KiwiSaver?

If you want to close your KiwiSaver account and be paid out the full balance of your account, this process takes 10 to 15 business days. We need to involve Inland Revenue in the closure and make sure that you receive all the contributions you’re entitled to.

What is proof of financial hardship?

You may also need to provide evidence to show the link between the event and financial hardship. This may include either: payment of rental bond. bank statements showing a reduction of income, essential spending and reduced savings. a report from a financial counselling service.

Can the government take your KiwiSaver?

The government – through Inland Revenue – has set up KiwiSaver and makes sure that the money you put in (and any KiwiSaver employer contributions) goes into your account. … But that money is yours and cannot be taken back by the government.

Can you withdraw KiwiSaver twice?

You can only make a KiwiSaver first home withdrawal once. If you’ve owned property before, you may qualify for a second chance home buyer withdrawal. You may also qualify for a HomeStart grant.

Why is my KiwiSaver going down?

Your KiwiSaver money is often invested in shares on the share market, so it is affected by market volatility (ups and downs). When the market rises and falls, your balance can increase or decrease. When it goes up, it’s great. But sometimes it falls, gently and gradually, or sometimes sharply.

Is KiwiSaver taxed on withdrawal?

You pay tax on the money your investment earns. Withdrawals from your KiwiSaver scheme are tax-free.

How do I access my KiwiSaver hardship?

Contact your scheme provider for the correct form to complete to make a hardship withdrawal. You only need to apply to us if you’re within the first 2 months of your KiwiSaver membership. To withdraw funds you will need to provide evidence you are suffering significant financial hardship.

What happens to my KiwiSaver if I die?

If you die while you are a member of a KiwiSaver scheme your full account balance will be paid to your estate. You can’t nominate people (called ‘beneficiaries’) to receive your funds directly from your KiwiSaver Scheme; your provider always has to pay it to your estate.