Government looks to right 'unfairness' highlighted by Down syndrome KiwiSaver

Tuesday, 11 December 2018

A man with Down syndrome who wants to access his KiwiSaver funds early looks set to get his wish.

Tim Fairhall, 39, spoke to MPs in Parliament in September.

He wanted access to his KiwiSaver funds before 65 so that he could travel overseas while he was still in good health.

Having Down syndrome meant Fairhall is ageing faster than most people. The life expectancy for people with the condition is 57.

* Man with Down syndrome appeals for early access to KiwiSaver**

Fairhall has worked since he was 18 and had been in KiwiSaver for 10 years.

Claire Matthews is one of two advisers who will work on a solution.

Now, two independent advisers have been appointed to help Commerce and Consumer Affairs Minister Kris Faafoi find the best way for people with life-shortening conditions to withdraw their KiwiSaver funds when the it was time to retire.

'KiwiSaver helps New Zealanders enjoy the best retirement they can,' Faafoi said. 'Part of the success of KiwiSaver as a retirement savings scheme is because funds are not available until the age of 65, so the savings grow and help people considerably towards a financially secure retirement.

'However, it's important KiwiSaver works for all New Zealanders. Tim has Down syndrome and is aging prematurely. He hopes to retire in his mid-40s and access his savings – but at the moment, he can't.

'I think it's fair and just that New Zealanders who have been paying into KiwiSaver throughout their working life should expect to one day enjoy the benefits of their savings in their retirement – be that at 45 or 65.'

At the moment it is only possible to withdraw KiwiSaver money for a first home, in cases of severe hardship or at 65.

People with life-shortening conditions are typically only able to withdraw their savings when they are permanently unable to work or at imminent risk of death.

Minister of Commerce Kris Faafoi said KiwiSaver had to work for all New Zealanders.

'I think we have to acknowledge that the one-size fits all retirement age does not work for this group faced with life-shortening conditions – so we are going to fix that,' Faafoi said.

He said the change might not happen in time for him to go on holiday but the Government wanted to help people in his situation.

It was possible the change could happen within the next few years, he said.

Claire Matthews, of Massey University and Donna Mitchell, of the IHC, will look at how special circumstances could be dealt with to help people such as Fairhall.

'The two advisers will consult with people who are faced with this issue, with medical practitioners and KiwiSaver experts, before reporting back to me in early 2019,' Faafoi said.

'It is a technically complex area so I can't promise a quick fix for Tim personally but I am going to move this forward because this Government is committed to ensuring its policies work for all New Zealanders.

'Everyone deserves the right to use the money they have saved for their retirement.'

Advice is expected back to the Minister by the end of February. Changes to the KiwiSaver withdrawal criteria would require legislation.