Northland KiwiSaver hardship withdrawals surge by 109%, raising retirement concerns
Concerns are being raised that many people will be woefully unprepared for retirement.
There was a 109% increase in Northlanders withdrawing funds from KiwiSaver due to
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NZ Herald
18 hours ago
- NZ Herald
Northland KiwiSaver hardship withdrawals surge by 109%, raising retirement concerns
The number of Northlanders dipping into their KiwiSaver funds due to financial hardship has more than doubled over the past three years. Concerns are being raised that many people will be woefully unprepared for retirement. There was a 109% increase in Northlanders withdrawing funds from KiwiSaver due to
NZ Herald
a day ago
- NZ Herald
Why you need a Will now more than ever
This article was prepared by Holland Beckett and is being published by the New Zealand Herald as advertorial. In today's evolving financial and legal landscape, having a valid Will in place has never been more critical for New Zealanders. The absence of a Will can lead to unnecessary delays, stress, and cost for families. One of the most overlooked reasons to have a Will is KiwiSaver. Many people assume their KiwiSaver balance will automatically pass to their partner or next of kin on death, but that's not how it works. KiwiSaver funds are held solely in the name of the individual and do not pass by survivorship (think, property held as joint tenants). Instead, they must be dealt with as part of the person's estate, and if there is no Will, this creates delays and uncertainty in accessing those funds. With the recent Government budget injecting more incentives and support into KiwiSaver, balances are likely to grow significantly over time. Another relevant factor is the probate threshold. Currently, assets over $15,000 will require a grant from the Court. This threshold is due to increase to $40,000 in the near future, to better reflect current asset values. In real terms, the threshold is easily exceeded - especially when you consider KiwiSaver. Without a Will, for which the court can grant 'probate', family members must apply for 'letters of administration' which can be slower and more complex, particularly when family dynamics are tense. At the same time, more New Zealanders are choosing to own property as tenants in common rather than joint tenants – especially in blended families or where people wish to protect their children's inheritance from a new partner. This structure allows each party to leave their share of the property to whomever they choose, provided they have a Will to specify that. In this situation, a Will should complement any Contracting Out Agreement (or 'Pre Nup'). Many family trusts are now being wound up or simplified because of changes in trust law, compliance costs, ageing/migrating settlors and international beneficiaries (giving rise to tax implications). As assets come out of a trust and revert to personal ownership, they become part of a person's estate and must be carefully dealt with by their Will. Overseas properties, investments and digital assets can be challenging to deal with if someone passes without a Will (or Wills) to reflect what should happen to assets in other countries. Having a Will is no longer just about passing on the family home – it's about ensuring some thought is given to the increasing complex assets and arrangements of the modern estate. With the right guidance, a complicated situation can have a clear and manageable solution. The key is to decide what you want to achieve, and get a Will drafted to reflect that.
Scoop
a day ago
- Scoop
Generate Appoints Matt Hanchet As Investment Distribution Manager
Press Release – Generate Before the role at Mint, Matt spent five years at Generate where he started in customer relationship management before heading to Distribution and becoming a Business Development Manager. Generate, one of New Zealand's leading KiwiSaver and wealth providers, is pleased to announce that Matt Hanchet is returning to Generate and joining the team as Investment Distribution Manager. Matt was most recently Head of Retail Distribution at Mint, where he led adviser engagement and helped shape distribution strategy, product positioning, and media relationships. He worked closely with the investment team to align messaging with Mint's investment process and played a key role in lifting their market presence. Before the role at Mint, Matt spent five years at Generate where he started in customer relationship management before heading to Distribution and becoming a Business Development Manager. Generate KiwiSaver Scheme has more than 170,000 members and more than 7 billion funds under management. Generate's portfolio of eight managed funds is becoming a central focus as more informed Kiwis seek expert guidance to build their financial futures beyond KiwiSaver. Matt's new role will be key to increasing the rollout of managed funds within Generate's third-party adviser network. Matt says, 'I'm excited to take on the role of Investment Distribution Manager. It's a significant opportunity to help advisers across New Zealand fully leverage Generate's excellent range of managed funds.' Says Kristian James, Generate Head of Distribution: 'Matt's leadership and skills were highly valued during his previous tenure with Generate. Now we're excited to have him back in this key distribution role.'
