Photo: IGOR STEVANOVIC / SCIENCE PHOTO
Nearly $500 million has been withdrawn due to financial hardship from Kiwisaver accounts for the year to June, but what is the long-term cost of these withdrawals?
$470 million was taken out of Kiwisaver accounts by people struggling to get by, with the average withdrawal at $9,000 per withdrawal.
The annual total withdrawal figure is up more than 50 per cent on the previous year's withdrawals, and when compared to the year to June 2020, it is up more than 240 per cent.
Kiwisaver members can withdraw sums from their accounts to buy a first home, move overseas, have a serious illness or life-shortening condition, or for significant financial hardship.
For withdrawals, members have to go through their provider and have evidence they are suffering significant financial hardship.
But what can a withdrawal now mean for the final picture when someone comes to retire - how much could they be losing out on.
The Retirement Commission's personal finance lead Tom Hartmann speaks to Kathryn.
