KiwiSaver hardship withdrawals not always necessary: report

Detailed summary

The number of KiwiSaver hardship withdrawals, is now higher, for first home deposits. New research finds some people who've made hardship withdrawals, may not have had they been aware of other support options.

People who make KiwiSaver hardship withdrawals may not have done so, had they been made aware of other support options.

That's according to a new Victoria University report led by Victoria Stace, senior lecturer of law, and commissioned by FinCap.

Withdrawals by people in hardship have risen sharply in the 12 months to June 2026, more than 52,000 KiwiSaver members made a withdrawal.

That’s up from just over 20,000 in 2023. Inland Revenue says hardship withdrawals now outpace withdrawals for first home deposits.

Victoria Stace says in as much as half of the hardship withdrawals, when other assistance is made known, the withdrawal may not have been needed.

FinCap's senior policy advisor Jake Lilley says there needs a to be a system where budget advisors can be involved and check all options before a hardship withdrawal.

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