Early KiwiSaver withdrawals topped $225 million during March, reaching a new monthly record high.
According to Inland Revenue (IRD), which tracks monthly KiwiSaver statistics, 9,170 KiwiSaver members withdrew a total of $225,483,431 during March.
This was made up of 4,190 people withdrawing $181.1 million for home ownership, and 4,980 people withdrawing $44.3 million due to financial hardship.
KiwiSaver was introduced by the Labour Government in 2007 to help New Zealanders save for retirement. The scheme currently has 3.39 million enrolled members, according to IRD.
People are generally only able to withdraw from their KiwiSaver when they reach the retirement age of 65, but can apply for early KiwiSaver withdrawals on financial hardship and first home ownership grounds.
March’s home ownership withdrawals reached a new monthly high, while financial hardship withdrawals reached their second highest ever monthly withdrawal level.
Home ownership withdrawals in March were $32 million above February, and financial hardship withdrawals were up $7.3 million compared to March as well.
Comparing March 2025 with March 2024, first home withdrawals were up $37.4 million, and financial hardship withdrawals had risen by $15 million.
The previous monthly record for early KiwiSaver withdrawals was in November 2024 when over $222 million was withdrawn.
The latest IRD data shows the 25-34 age category still remains the demographic with the largest number of KiwiSaver members with 740,455, but the 35-44 category is close behind with currently 728,253 members.
By KiwiSaver scheme entry method, 652,184 members were in default allocated schemes, 211,459 were in employer nominated schemes and 2,519,177 had actively chosen their KiwiSaver scheme in March.
IRD also tracks the number of non-active members, people who opt out of KiwiSaver as well as those who close their accounts. The total number of non-active members came to 781,069 in March, 5,994 more than in February. KiwiSaver account closures came to 593,476 in March, up 1% from 587,525 in the prior month.
Reasons for KiwiSaver account closures include death, permanent emigration, retirement and serious illness. Almost 60,500 KiwiSaver accounts have closed for these reasons since February 2024.
The latest IRD data shows 4,219 people enrolled in KiwiSaver during March.
The Government contributes 50 cents for every dollar a person contributes to their KiwiSaver, up to a maximum annual Government contribution of $521.43.
To get the full Government contribution, people need to have contributed at least $1,042.86 to their KiwiSaver between the 1st of July and 30th of June each year.
Payments to KiwiSaver providers came to $778.6 million in March which was up 1.9%, or $14.9 million, from February’s fees, and up 4.2%, or $31.7 million, from provider fees in March 2024.
7 Comments
In before the comment section is turned off 😂
But ANZ and the property pundits say we've turned a corner. We're booming aren't we?
Sam Stubbs reckons that we have to ditch the Ponzi and spend all out Kiwsaver funds on infrastructure and then we can be rich like S'pore and Aussie.
Personally I think Sam's wisdom is overrated. Sounds good though.
https://www.thepost.co.nz/business/360661494/and-now-some-good-news
Economist Steve Keene highlights that private sector savings are drawn down and private sector debt increases when government spending contracts. Expect Kiwi Saver withdrawals to increase this year.
KS withdrawals propping up the housing market.
True.
As the KS values plummet during 2025, the only significant Ponzi table, has the last sustaining leg smashed out.
No way in hell, will the Main Banks BS hopium story, of a home market rebound occur.
Mike Housing Ponzi Hosking, will be crying by Dec 2025:)
Sadly KS withdrawals will be younger people.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.