A KiwiSaver hardship withdrawal usually takes 3 to 5 weeks from a complete application to money in your account, and longer if the supervisor asks for more information. It isn’t a quick fix: the bar is very high, you must show that you’ve tried other options first, and the amount is limited to what you need to get through the hardship.
Below you’ll find the timeline step by step, what each major provider says about processing times, how much you can realistically withdraw, the documents to prepare, and the most common reasons applications are declined.
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Timeline: from application to payment
| Step | Who | Typical time |
|---|---|---|
| 1. Gather documents, including a statutory declaration signed in front of an authorised witness | You | A few days to a week |
| 2. Provider checks the application is complete | Your KiwiSaver provider | Days to several weeks, depending on the provider |
| 3. Supervisor decides, and may ask for more information | The scheme’s independent supervisor | Included in the provider’s timeframe; longer if more information is needed |
| 4. Payment after approval | Your provider | Often 2–3 working days |
Missing documents are the main cause of delay. A complete application the first time can save weeks.
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Processing times by provider
| Provider | What the provider says |
|---|---|
| ASB | An answer within 15 business days of receiving a complete application, if no further information is needed. If approved, payment is generally processed within 2–3 working days. |
| Fisher Funds | The claims team takes up to 20 business days to review the application, plus the supervisor’s decision. If the supervisor asks for more information, you have 4 weeks to provide it or the application is cancelled. |
| Other providers (ANZ, BNZ, Westpac, AMP, Generate and others) | Check the provider’s hardship page or call them before you apply; timeframes and forms differ. |
No provider can prioritise individual applications. If you have a deadline such as a disconnection or mortgagee sale date, tell the provider and say so in your application, and contact Work and Income at the same time.
What qualifies as significant financial hardship?
| Usually considered | Usually not accepted |
|---|---|
| You can’t meet minimum living expenses: food, accommodation, transport, power, water or gas | Paying off credit card spending |
| Mortgage payments on your home when the lender is enforcing repayment | Investment property mortgages |
| Medical treatment for you or a dependant | Court fines |
| Modifying your home for a disability | Debts to Inland Revenue or Work and Income |
| Palliative care or funeral costs for a dependant | Holidays or travel |
| Minimum debt repayments or arrears, for example to stop a car being repossessed | Paying a debt off early in full |
The supervisor must be satisfied that you have explored and used up reasonable alternatives first. That usually means asking Work and Income for help and asking your creditors for a payment plan.
Will KiwiSaver pay off my credit card debt or Afterpay?
Generally not in full. Credit card purchases are not an eligible cost, and paying debts off early is very unlikely to be approved. A supervisor may approve money for minimum repayments and arrears where missing them would cause real hardship, such as losing your car or your home. For card and buy now pay later debts, a payment plan, free help from MoneyTalks (0800 345 123) or debt consolidation are the usual routes.
How much can you withdraw? Worked example
You can’t withdraw government contributions (including member tax credits and the old kick-start). The amount is limited to what the supervisor thinks you need, often based on 13 weeks of your budget shortfall, and the supervisor uses standard minimum living costs rather than your actual spending.
| Example | Amount |
|---|---|
| Weekly income after tax | $620 |
| Minimum weekly living costs (rent, food, power, transport) | $780 |
| Weekly shortfall | $160 |
| 13 weeks of shortfall | $2,080 |
Even with $15,000 in KiwiSaver, this person would likely be approved for around $2,080, not the full balance. If the shortfall is temporary, for example while waiting for a benefit or a new job to start, a Work and Income advance may be faster.
Documents checklist
- The provider’s hardship application form.
- A statutory declaration, signed in front of an authorised witness such as a Justice of the Peace or lawyer.
- Certified ID.
- 3 months of bank and credit card statements for every account, including accounts at other banks.
- Proof of income: payslips, benefit statement, or a redundancy notice.
- Your rental agreement, or mortgage statements and any letter from the lender about enforcement.
- Bills and arrears notices: power, water, rent, car loan.
- Written confirmation from Work and Income that they can’t help, or what help they gave.
- Evidence that you asked creditors for a payment plan.
- If you live with a partner: their financial information, and a separate application if they also apply.
Why do hardship applications get declined?
| Reason | How to avoid it |
|---|---|
| Missing or incomplete documents | Use the checklist above; send everything at once |
| Other money available (savings, a second account, an asset you could sell) | Be upfront; explain why it isn’t available |
| You didn’t try Work and Income or your creditors first | Get written answers from them before you apply |
| Bank statements show non-essential spending | Cut it back before you apply and explain changes in your budget |
| The cost isn’t eligible, such as credit card debt | Ask for minimum repayments or arrears instead, with evidence of the consequence |
If you are declined, you can ask for the reasons and complain to the provider. After that, the provider’s dispute resolution scheme can review whether the decision was reasonable. Don’t pay a consultant to apply for you: your provider, MoneyTalks and Citizens Advice Bureau help for free.
A last resort, not a quick fix
A hardship withdrawal doesn’t need to be repaid, but it permanently reduces your retirement savings, including the investment growth that money would have earned. Before you apply, check whether Work and Income, a payment plan or a hardship variation from your lender can solve the problem. If you’re comparing borrowing instead, see what it really costs in cash loans NZ.
Frequently asked questions
How long does a KiwiSaver hardship withdrawal take?
Usually 3 to 5 weeks from a complete application to payment, depending on your provider and whether the supervisor needs more information.
How much of my KiwiSaver can I withdraw for hardship?
Only what the supervisor believes you need, often based on 13 weeks of your budget shortfall or your overdue essential bills. Government contributions can’t be withdrawn.
Do I have to pay back a KiwiSaver hardship withdrawal?
No. It isn’t a loan, but it permanently reduces your retirement savings.
Can I apply for KiwiSaver hardship more than once?
Yes, but each application needs fresh evidence, and you may have to show how earlier payments were used.
Who makes the final decision?
The scheme’s independent supervisor, not your provider. The provider collects your application and passes it on.
