Peter Williams is joined by Tom Hartmann, the editor of Sorted to talk about Kiwisaver contributions during this unprecedented time.
Hartmann explains they have had a considerable increase in the number of enquiries, with the inbox jumping by 400%.
“There are heaps of trade offs to make,” he explains, while others are making decisions to stop kiwisaver contributions.
It’s a really good time to understand Kiwisaver and how it works
“It’s an investment”, Hartmann says, and affirms the team are “all for people withdrawing for hardship.”
When people can’t make ends meet, it's their money if they need it. “But it's irreversible,” he explains.
People need to understand how much money they’re potentially walking away from, he reminds us that employers and the government match the money.
“Some people don't realise, the interest portion in your loan does not turn off when you press pause.” Every financial holiday makes your debt more expensive overall, Hartmann explains.
Peter says more than half of New Zealanders are not confident about their financial stability, to which Hartmann replies it was “always going to happen” when people's incomes were affected.
This is also a great moment to reevaluate our financial behaviour.
Listen to the full interview above.