Losing your job is stressful, and it’s natural to look at your KiwiSaver balance and wonder whether you can access it. The answer, for most people, is no: redundancy alone does not qualify for a KiwiSaver early withdrawal.
Here’s how the rules apply after redundancy, and the other options available. The full list of situations that do allow early access is in the KiwiSaver withdrawal rules, and each has a guide in the KiwiSaver withdrawals section.
The Short Answer
KiwiSaver does not have a “redundancy” withdrawal category. Being made redundant is not, by itself, a qualifying reason for early access to your KiwiSaver funds.
The relevant withdrawal type is significant financial hardship, but this has a narrow legal definition that redundancy alone does not satisfy.
What Is Significant Financial Hardship?
Inland Revenue describes significant financial hardship through the situations it includes: for example, not being able to cover minimum living costs, or a lender moving to enforce the mortgage over the home you live in. Losing a job, or earning less, isn’t one of them by itself; the KiwiSaver hardship withdrawal guide sets out the full list.
Why Redundancy Doesn’t Automatically Qualify
The hardship criteria focus on inability to meet specific expenses, not on the cause of that inability (redundancy, illness, a market downturn, etc.).
Even after redundancy, many people:
- Receive redundancy pay, which covers expenses for weeks or months
- Are entitled to Work and Income NZ (WINZ) Jobseeker Support
- Have savings, a partner’s income, or other resources
Your provider and its supervisor assess your actual financial position, not just whether you’ve lost your job. If you have redundancy pay in the bank, you are unlikely to qualify for a hardship withdrawal, even if that money will eventually run out.
When Redundancy Could Lead to a Hardship Qualification
Redundancy can indirectly lead to a qualifying situation if:
- Your redundancy pay has run out
- You have no other income or savings
- You are genuinely unable to cover minimum living expenses (rent, food, utilities)
- You can document this with bank statements, WINZ correspondence, and evidence of expenses
In this scenario (genuine inability to meet minimum living expenses) you may qualify for a hardship withdrawal. But the redundancy is not the trigger; the inability to meet expenses is.
Important: You can only withdraw the amount needed to alleviate the hardship. You cannot withdraw your full KiwiSaver balance under a hardship claim. Government contributions are not accessible under hardship.
The Hardship Application Process
If you believe you genuinely meet the hardship criteria:
- Contact your KiwiSaver provider directly; most have a dedicated hardship team
- Request the hardship application form and supporting document checklist
- Gather the evidence your provider asks for, such as bank statements, evidence of all income (WINZ, redundancy pay, partner income), rental or mortgage statements and bills
- Submit the complete application
- Allow time for processing, which depends on your provider (some aim to pay within 20 business days of a complete application), while your provider and its supervisor check the evidence
See how long does a KiwiSaver withdrawal take? for full processing timelines.
Other Options After Redundancy
These options are often faster than a hardship application and leave your retirement savings untouched.
1. Work and Income NZ (Jobseeker Support)
WINZ provides income support for people who are unemployed or working reduced hours. It’s not means-tested against KiwiSaver balances. Apply at workandincome.govt.nz.
2. Pause Your KiwiSaver Contributions (Savings Suspension)
If you’re currently employed but struggling, you can apply to suspend your KiwiSaver contributions for a minimum of 3 months and up to 1 year. This increases your take-home pay immediately.
However: If you’re already unemployed, this doesn’t apply, because contributions are only deducted from employment income.
See KiwiSaver savings suspension.
3. Reduce Your Contribution Rate
If you return to work, you can change your contribution rate down to the 3.5% minimum (from 4%, 6%, 8% or 10%) to free up cash flow. If even 3.5% is unaffordable, you can apply to IRD for a temporary rate reduction to 3% for 3–12 months.
See KiwiSaver contribution rates.
4. Emergency Fund
If you have savings set aside for emergencies, they can cover expenses without reducing your retirement savings, and a hardship assessment would take them into account anyway.
5. Budget Advice
Sorted NZ (sorted.org.nz) provides free budget advice and tools. MoneyTalks (0800 345 123) offers free financial mentoring for New Zealanders.
The Real Cost of an Early Withdrawal
Withdrawing KiwiSaver early, even legitimately, means that money stops earning returns.
If you withdraw $20,000 at age 40 and retirement is 25 years away, at a 7% annual return, that $20,000 would have grown to approximately $108,000 by age 65. Early withdrawal is extremely expensive in long-run retirement terms.
That long-term cost is one factor to weigh against your immediate needs.
Frequently Asked Questions
Can my KiwiSaver provider see my bank account? They may ask for bank statements as part of a hardship application. They will not access your accounts directly, but they do verify the financial information you provide. Providing false information is fraud.
What if I’m self-employed and my business has failed? Business failure is assessed the same way as redundancy: it can lead to a hardship withdrawal if you have no other income and cannot meet basic living expenses. The process is the same, with full financial documentation including business accounts. For other KiwiSaver rules when you work for yourself, see KiwiSaver for the self-employed.
How long after redundancy can I apply for hardship? There is no minimum or maximum waiting period; it’s based on your current financial position. If you’ve just received a large redundancy payout, it’s unlikely you’ll qualify immediately. If that pay has run out and you can’t cover minimum expenses, that’s when a hardship application may be appropriate.
Will a hardship withdrawal affect my future KiwiSaver? It will reduce your balance, and the long-term compounding impact is significant.
I was made redundant and have a mortgage. Do I qualify? Possibly, if you cannot pay the mortgage on the home you live in and your lender is seeking to enforce the mortgage. This is one of the qualifying criteria. However, the trustees must also be reasonably satisfied that reasonable alternative sources of funding have been explored and exhausted, so other income or resources can affect the outcome.