About a year ago I did some serious investigation into joining KiwiSaver, but decided against it because I could not get a definite answer to my questions. I have multiple sclerosis, which at some point may prevent me from working. If it does I want to be able to withdraw my KiwiSaver. I thought KiwiSaver would have a list of illnesses that qualify, as with life insurance early payouts, but it would appear that is not the case. The conclusion I came to was it would depend on the committee and the day.
KiwiSaver can be dipped into if you are suffering from serious illness or financial hardship, but the bar is, understandably, set fairly high. Your provider may collect the documentation for the claim, but the decision is made by the scheme's trustee - known as the supervisor.
The supervisor's role is to ensure KiwiSaver funds run in the best interests of investors. Vanja Thomas, senior relationship manager at Guardian Trust, which is a supervisor for a number of KiwiSaver funds, says your question raises pertinent issues.
"The framework to assess claims on the basis of serious illness is very prescriptive and is included in the KiwiSaver Scheme Rules," she says.
Broadly, if a member wishes to apply to withdraw funds on the grounds of serious illness the supervisor assessing the claim needs to be reasonably satisfied an injury, illness, or disability:
