KiwiSaver withdrawal statistics may show a “tale of two New Zealands”.<\/p>\n
Data from Inland Revenue showed there was $244.3 million taken out of the scheme in June for first homes and hardship reasons.<\/p>\n
Of that, $43.4 million was withdrawn by people in financial hardship, up from $36.5m in June 2025.<\/p>\n
Another $200.9m was withdrawn for first homes, up from $155.3m in June 2025.<\/p>\n
A total of 4370 people withdrew money from KiwiSaver for a first home in the month, with an average withdrawal of just under $46,000.<\/p>\n
There were 5130 hardship withdrawals, for an average of just under $8500.<\/p>\n
What’s good debt, what’s bad debt and how do I tell the difference?<\/p>\n
No Stupid Questions with Susan Edmunds<\/p>\n
Simplicity chief economist Shamubeel Eaqub said it showed some people were in a strong financial position, while others struggled.<\/p>\n
He said people who had been investing in KiwiSaver through recent years had experienced the benefit of very strong markets.<\/p>\n
“All of a sudden that’s compounded to a big number. The average withdrawal is now $46,000 so for a couple that’s over $90,000 – $90,000 is a decent deposit in many parts of New Zealand.”<\/p>\n
Eaqub said with the housing market weak, people’s deposits growing, and mortgage rates still lower than they had been, it was a “sweet spot” for buyers.<\/p>\n
Koura founder Rupert Carlyon agreed.<\/p>\n
“It’s a great time to be a first-home buyer, would be my honest feeling. A lot of those first-home houses have got materially cheaper over the last couple of years.<\/p>\n
“It’s one of the segments that’s dropped more than anywhere … I think people are thinking ‘now I can’. Particularly with balances ticking up, markets have been good to people.”<\/p>\n
But Eaqub said the data showed no sign yet of a drop in hardship applications, which had hit record levels in recent years.<\/p>\n
“The biggest reason why people are dipping into KiwiSaver is still they’re just finding it really tough.”<\/p>\n
He said hardship applications Simplicity received were usually related to job losses, mental health issues, or medical emergencies.<\/p>\n
“A lot of people are coming back for the second time because they’ve had the first 13 weeks or whatever and things still haven’t improved.”<\/p>\n
Carlyon said he was not seeing a drop in withdrawal numbers but they were not accelerating like they had been.<\/p>\n
“I think what we are seeing is people who are much more savvy about withdrawals. They know what they’re asking for, they know how to ask for them. There’s definitely a bit of an industry going on.<\/p>\n
“People are fighting back a lot more.”<\/p>\n