National leader Christoper Luxon and Housing spokesperson Chris Bishop announce a policy to let young people under 30 draw on their KiwiSaver accounts to help pay for tenancy bond payments.
Tertiary students will be able to dip into their KiwiSavers to pay for tenancy bonds under the National Party’s newest policy announced today to “free up cash for young people”.
Leader Christopher Luxon announced the policy during orientation week at the University of Auckland along with the party’s spokesman on housing, Chris Bishop.
The policy, suggested by the party’s youth wing, the Young Nats, would see students aged under 30 eligible to use money from their KiwiSaver for up to five years.
But the chief executive of investment platform Sharesies, Leighton Roberts, said relaxing access to KiwiSaver funds would “inevitably lead to a lower balance for retirement or buying a house”.
“Rent bonds are definitely an affordability problem,” Roberts said, “but the proposed policy to let under-30s access their KiwiSaver for tenancy bonds isn’t the right solution.
”It’s important to note that paying for tenancy bonds isn’t ring-fenced to just those under-30s, it’s impacting Kiwis of all ages,” Roberts said.
Bishop said the five-year cap on accessing KiwiSaver funds “reflects the fact that we want young people joining KiwiSaver early and staying in for the long haul”.
Bishop said National had spoken to KiwiSaver providers about the policy and the “back end” of schemes would need to be configured to make the policy possible.
The policy would mean a law change to the KiwiSaver Act to make make the necessary operational changes.
Bishop said students will be able to transfer bond payments from their KiwiSaver accounts directly to Tenancy Services. It will be returned once the tenancy ends.
National Party leader Christopher Luxon meeting students at the University of Auckland. Photo / Dean Purcell
“This is a commonsense change that will make it easier for people to pay for bonds, and free up cash for young people,” Bishop said.
“Getting together up to four weeks’ rent in advance for a tenancy agreement is not easy for many people, particularly for students and young graduates, who don’t have a lot of cash,” he said.
“Young people have told me they’d like to have the option of using their KiwiSaver savings to sort their bond payments, and that this policy will make a difference.”
Tertiary students will be able to dip into their KiwiSavers to pay for tenancy bonds as per the National Party’s newest policy announced today to “free up cash for young people”. Photo / Dean Purcell
