How to decide if you should make a KiwiSaver hardship application

Each week the NZ Herald and Newstalk ZB's Cooking the Books podcast tackles a different money problem. Today, it's how to weigh up whether you need to drain your KiwiSaver to survive Covid-19. Hosted by Frances Cook.<br /><br />There’s been a lot of chat lately about KiwiSaver hardship withdrawals. <br /><br />It’s easy to see why. Many of us don’t have savings easily to hand – a stat I talked about in a previous episode is that 58 per cent of New Zealanders have less than $500 in savings. <br /><br />Then you look at your KiwiSaver, which could have tens of thousands in it by now. With troubled times approaching, you might want it closer to hand. <br /><br />The problem is, if you take that money out before you need it you could be seriously hurting your future self. <br /><br />Because of compound interest, whatever you take now would have been worth a lot more by the time you retire. You're taking a bigger slice than it feels like you're taking.<br /><br />But it’s still better to tap into your KiwiSaver than to go under.<br /><br />For the latest Cooking the Books, I talked to authorised financial advisor and National Capital director Clive Fernandes.<br /><br />We discussed whether it should be easier to make a hardship withdrawal, the impact it can have on your future, and how to weigh up your current needs versus your future ones. <br /><br />If you have a question about this podcast, or question you'd like answered in the next one, come and talk to me about it. I'm on Facebook here <a href="https://www.facebook.com/FrancesCookJournalist/" rel="noopener">https://www.facebook.com/FrancesCookJournalist/</a> Instagram here <a href="https://www.instagram.com/francescooknz/" rel="noopener">https://www.instagram.com/francescooknz/</a> and Twitter here <a href="https://twitter.com/FrancesCook" rel="noopener">https://twitter.com/FrancesCook</a>