Senior journalist David Hargreaves has recently published a compelling analysis, comparing mortgage stats and KiwiSaver withdrawal data.
According to the IRD, KiwiSaver first-home withdrawals have almost doubled since 2016 – from $494 million to the current $986 million. So, KiwiSaver is proving to be a great tool for new buyers coming into the market. But as Hargreaves rightly notes, it’s also important to make sure that those early withdrawals don’t make retirement planning a lot more challenging.
He suggests that KiwiSaver be re-organised to include a retirement savings fund and a separate ‘home start’ category, so that one goal doesn’t compromise the other. It might be a good idea; until then, understanding the pros and cons is crucial. Like many things in life, financial decisions are all about choosing a course of action that creates the most value, and our Mortgage Link advisers can help point your clients in the right direction.
To get in touch with the team at Mortgage Link, please contact:
021 835 506
Disclaimer: In preparation of this publication all care has been taken, however no warranty is provided as to the accuracy of the information and, as such, no responsibility is taken by Pivotal Financial for any errors or omissions.
This publication does not constitute personalised financial advice, may not be relevant to individual circumstances and should not be seen to constitute a recommendation of any description. Before taking any action in relation to matters dealt with in this publication please seek Professional Financial Advice.
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