FinCap welcomes recommendation on Kiwisaver
FinCap, which supports the nation’s 200 local financial capability and budgeting services, has warmly welcomed the Retirement Policy Review’s recommendation #10 to "establish a centralised financial capability hub for Kiwisaver hardship applications". That could mean that people seeking to withdraw their Kiwisaver funds would have the right to work with a trained Financial Mentor to look at other options - e.g. microfinance, advocacy to reduce debt, improved budgeting - rather than the drastic step of reducing their retirement savings.
Tim Barnett, Chief Executive of FinCap, said today:
"Currently people in financial hardship wanting to withdraw Kiwisaver may go to a local budget service to talk through options or get help completing the paperwork. The evidence is that many people do have other options. That can create a win-win-win situation - their retirement savings aren’t reduced, the Kiwisaver scheme remains strong and they are on a pathway to financial capability. We look forward to discussing with Government and Kiwisaver companies how to progress these excellent proposals"