\nPhoto \/ Getty<\/p>\n
\u201cSo of the $143 billion funds under management in KiwiSaver, it\u2019s a very small proportion.<\/p>\n
\u201cIt probably reflects the statistics around net migration.\u201d<\/p>\n
The figures come as exclusive data released to the Herald by the FSC show nearly $2 billion in member contributions in the first quarter of this year.<\/p>\n
That\u2019s the second-highest quarter on record \u2013 and doesn\u2019t include the 3.5% contribution increase introduced by the Government in April.<\/p>\n
\u201cI think we\u2019ll see even more of a shift in the second quarter for this year in terms of more people contributing,\u201d Hope said.<\/p>\n
But while there\u2019s been a slight increase (0.31%) in members in the last 12 months, partial or full withdrawals continue to soar.<\/p>\n
Over the past year, there\u2019s been a 64% increase in people taking money out of the scheme.<\/p>\n
In some categories, partial withdrawals have also skyrocketed.<\/p>\n
Partial withdrawals for illness are up 63%.<\/p>\n
Hope said some people were likely turning to KiwiSaver because they were facing long waitlists or needed elective surgery quickly.<\/p>\n
\u201cWe would encourage the Government to take a look at that insurance space, make sure people can access some of those procedures much more quickly, by changing some of the policy settings in relation to health and life insurance,\u201d Hope said.<\/p>\n
First-home buyer partial withdrawals are also up 26%.<\/p>\n
And as the cost of living crisis continues to bite, those taking out their savings for hardship reasons has continued to rise, but at a slower rate.<\/p>\n
\u201cObviously we\u2019re in a cost-of-living crisis. People are facing a number of financial challenges. That\u2019s still only a very small proportion, and the overall funds under management in KiwiSaver continue to increase. <\/p>\n
\u201cWhat that tells you is there\u2019s not more people pulling their money out than are contributing, which is really important.\u201d <\/p>\n
Financial Services Council (FSC) chief executive Kirk Hope believes the right checks and balances are in place to ensure people are taking KiwiSaver money out for the right reasons.
\nPhoto \/ Getty<\/p>\n
Hope thought the right checks and balances were in place to ensure people are taking money out for the right reasons.<\/p>\n
\u201cYou\u2019ve got to apply to your provider. That provider has to go through a supervisor, so it\u2019s ultimately up to a supervisor to make a decision.\u201d<\/p>\n
The figures come as the politics of KiwiSaver and superannuation are heating up in election year.<\/p>\n