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26 minute read
Kiwis Are Raiding Their KiwiSaver Just to Get By
More Kiwis are dipping into KiwiSaver to cover bills. Here's what the numbers say and what it means if you're feeling the pinch.
Nurain Nadzirah
21 August 2026
Source : RNZ
It's not just you.
A record number of Kiwis are dipping into their retirement savings just to keep the lights on.
New IRD figures show 58,460 KiwiSaver hardship withdrawals were made last year. That's about 10,000 more than the year before.
Financial mentors say one in eight people who walk into a budgeting service isn't there about debt. Tthey're there to work out how to apply for a hardship withdrawal.
What Actually Qualifies for KiwiSaver Hardship Withdrawal?
If that sounds dramatic, it's because it is. KiwiSaver hardship withdrawals aren't easy to get.
You generally need to prove you can't cover:
- Basic living costs
- Your mortgage
- Essential home modifications
- Medical treatment
Providers ask for bank statements, proof of income, and a full picture of your expenses. It's designed to be a last resort, not a top-up.
Why Are Kiwis Withdrawing KiwiSaver Early?
Wages haven't kept pace with the cost of getting through the week. Add a stretch of high fuel prices earlier this year, and it's not hard to see why some households ran out of room to move.
Keen to get a clear picture of where you stand?
We can help surface other options first before you touch your retirement savings.
Fuel Prices Are Finally Easing
Petrol's actually getting cheaper. 91-unleaded dropped under $3 a litre in July, down from over $3.11 the month before. Diesel fell around 30 cents a litre too.
That's real money back in people's pockets—and it shows.
Retail spending jumped 2% in July after basically flatlining for months. Grocery spending alone was up nearly 3%.
Don't get too excited though!
This isn't a full recovery, but it is breathing room. The first real bit Kiwis have had in a while.
What This Means for You
If you're in survival mode right now, you're not alone.
A huge number of Kiwi households are in exactly the same position. Reaching for a hardship withdrawal isn't a failure. It's what the option exists for.
That said, it's still worth treating it as the last lever, not the first.
👉🏻 Using KiwiSaver to save for a first home this spring?
Get buyer-ready with our useful checklist: Get Ahead of Spring: Your Mortgage Pre-Approval Checklist
This article is for informational purposes only. It does not consider your personal financial situation or objectives. Please consult with Tella mortgage and financial experts before making any decisions regarding your mortgage or debt strategy.
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