KiwiSaver early access: hardship and serious illness

Significant financial hardship and serious illness are separate early-withdrawal grounds, with evidence requirements and different contribution treatment.

Hardship evidence

Significant financial hardship must be evidencedInland Revenue, significant financial hardship

Hardship funds

Member and employer contributions onlyInland Revenue, significant financial hardship

Serious illness

Permanent work impact or risk of deathInland Revenue, health withdrawals

Initial application route

Inland Revenue within the first 2 months of membershipInland Revenue, health withdrawals

What significant hardship covers

Inland Revenue lists inability to meet minimum living expenses, threatened mortgage enforcement on the home lived in, necessary home modifications and medical treatment among significant financial hardship situations. Its list also includes serious illness, dependent-family funeral costs and palliative care. The applicant must provide evidence of significant hardship. The presence of a cost or difficulty is therefore different from an accepted application establishing entitlement to a withdrawal. Inland Revenue, significant financial hardship (opens in a new tab).

Hardship does not release every contribution

If a hardship application is accepted, Inland Revenue says only the member’s and employer’s contributions can be withdrawn. Its guidance directs members to their scheme provider for the correct hardship form, with an Inland Revenue application route during the first 2 months of membership. A hardship withdrawal is not an unrestricted way to cash out the entire account, and the general explanation does not establish an individual approved amount. Inland Revenue, significant financial hardship (opens in a new tab).

Serious illness is a separate ground

The health-withdrawal page describes illness, injury or disability that permanently affects the ability to work or poses a risk of death. Medical evidence may be required. Approved health withdrawals can include some or all savings, including government contributions and investment earnings. The page also describes a separate life-shortening congenital condition ground. That ground has its own consequences and is not automatically interchangeable with every serious illness application. Inland Revenue, health withdrawals (opens in a new tab).

Who receives the serious illness application

Inland Revenue describes an initial process for members within the first 2 months, with longer-standing members applying through their KiwiSaver provider. Its initial serious illness process requires a doctor’s signed declaration and the application form with supporting documents. The form can be attached to a myIR message; a postal route is also available. Inland Revenue reviews the initial application and communicates approval or the reason for declining it. Inland Revenue, serious illness application (opens in a new tab).

Withdrawal and stopping deductions differ

Inland Revenue’s serious illness process separates access to existing savings from stopping future contributions. A member wishing to stop deductions must also apply for a savings suspension. Approval of a withdrawal does not itself describe what will happen to later payroll deductions. The initial Inland Revenue process is also distinct from the provider process used after the initial membership period, so its form is not presented here as a universal provider form. Inland Revenue, serious illness application (opens in a new tab).

Scope and calculator limits

This is general information about application grounds and routes. It does not diagnose an illness, determine significant hardship or approve access to funds. A KiwiSaver projection models a savings scenario and cannot determine the amount available under an early-withdrawal application. This guide gives no projected withdrawal amount and makes no recommendation to withdraw, suspend contributions or retain savings.

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