Simplicity KiwiSaver partners with Debtfix to help members experiencing financial hardship
Simplicity KiwiSaver and Debtfix have launched a pilot programme for KiwiSaver members who want to withdraw funds when they are experiencing financial hardship.
Now, people applying to Simplicity to withdraw KiwiSaver funds will be referred to Debtfix, New Zealand’s first not-for-profit debt solution provider. The holistic service supports people beyond the hardship application and looks for solutions that may mean people don’t need to draw down on KiwiSaver funds.
Sam Stubbs Simplicity managing director and Debtfix CEO, Chrisitne Liggins are working together to reduce the need for KiwiSaver hardship withdrawals.
Debtfix CEO, Christine Liggins, says they want to kōrero with Simplicity’s members because often they can see other opportunities that may work for people feeling the financial pinch.
“As debt specialists we consider a range of options like checking work and income entitlements and mediating viable debt solutions that work for debtors and creditors.
“We provide a wrap-around service when people feel they have no options left, including guiding people towards financial mentors as well as other social and well-being services,” she says.
“We’re really pleased with how well this is working,” says Sam Stubbs, Simplicity managing director. “So far hardship applications have reduced, and first signs are it’s a much better experience for members. We hope the support Debtfix offers members will mean less need for hardship withdrawals.”
Liggins says, “When you’re struggling to pay your credit card bill, while the landlord is knocking on your door – the last thing on your mind is preserving your KiwiSaver nest egg. The reality is that they will try to dip into KiwiSaver funds to sort out a financial crisis, especially New Zealanders who rely on multiple unsecured debts.”
During the successful two-month pilot programme, Debtfix has provided on-going support to improve applicants’ long-term financial outcomes and encouraged a savings culture