Kiwisaver and low life expectancy

An interesting issue on Kiwisaver for people whose life expectancy means that the odds are against them making it to 65, they age you have to be to use your Kiwisaver savings.

NZH: Joan and Tim Fairhall take KiwiSaver fight to Parliament

A mother and son seeking access to his KiwiSaver funds before his likely premature death took their fight to Parliament today.

Joan and Tim Fairhall today made a submission to a select committee considering changes to tax law.

Joan Fairhall, is trying to get KiwiSaver laws changed that are preventing Tim from accessing his money before the age of 65.

Tim has Down Syndrome which will lower his life expectancy, and he may not live until he is 65.

There is an obvious problem for people with Downs Syndrome, whose life expectancy is about 60 years.

The only current ways to cash up early (before you reach 65: Accessing early

  • Buying your first home
  • Moving overseas permanently
  • Significant financial hardship
  • Serious illness

So no option if you just have a low life expectancy. There are common conditions that lower life expectancy, like diabetes.

Life expectancy in general in New Zealand (Ministry of Health) :

Title: Figure 5: Life expectancy at birth, by gender, Māori and non-Māori, 1951–2013

In 2013, life expectancy at birth was:

  • 73.0 years for Māori males
  • 77.1 years for Māori females
  • 80.3 years for non-Māori males
  • 83.9 years for non-Māori females.

So Māori males on average would get about 8 years to use their Kiwisaver savings, while non-Māori males get nearly twice that at 15 years.

This disparity would be more of an issue for Māori men with something like diabetes.

As a matter of general interest, life expectancy depends on when you were born. And if you survive until you are, say, 60, your expectancy increases.

Here’s a life expectancy calculator (from Fisher Funds).

Leave a comment

13 Comments

  1. Blazer

     /  September 13, 2018

    Why join him up in the first place?His condition was known and it was voluntary.
    Give him back only his contributions and any earnings attributed to that portion.

    Reply
    • Kitty Catkin

       /  September 13, 2018

      I wondered about that; I had thought that it was voluntary,

      If he didn’t realise the implications, his parents should have.

      Reply
      • Kitty Catkin

         /  September 13, 2018

        If someone knows that they are unlikely to reach 65, I can’t see why they would join something like this. Or, in this case, why the parents didn’t intervene.

        The law can’t be changed for one case and as it’s an existing condition, they can’t claim that it’s an illness.

        Reply
  2. Alan Wilkinson

     /  September 13, 2018

    Typical consequence of letting Govt manage your life.

    Reply
    • Gezza

       /  September 13, 2018

      Just like the other end of the stupid where Millionaires get the Winter Energy Payment.

      Reply
    • Gezza

       /  September 13, 2018

      Did you opt out of the Winter Energy Payment, Al – out of interest?

      Reply
      • Gezza

         /  September 13, 2018

        (There’s no need to answer, of course, if it might be an embarrassing situation completely inconsistent with your constant utter revulsion and rejection of absolutely anything that amounts to wasteful socialist largesse. I’m sure everyone would understand.)

        Reply
      • Pink David

         /  September 13, 2018

        Well, if the government offers you free money I don’t see any moral objection to taking it.

        Reply
        • Gezza

           /  September 13, 2018

          Yes but you might not be so committed to principle as Al is?

          Reply
          • Kitty Catkin

             /  September 13, 2018

            It’s not free money. The government doesn’t HAVE any money. What they have is the use of YOUR money, OUR money.

            The money was given to you by the taxpayers of NZ…so people are being given it one day and having it taken as tax the next.

            Reply
            • Gezza

               /  September 13, 2018

              Well, whatever. Al hasn’t replied. But like I said, I’m sure everyone understands.

            • Kitty Catkin

               /  September 13, 2018

              Many people don’t seem to realise that govt. money is actually the people’s money. They expect this and that to be subbed….not thinking who’s paying for the subs. Everyone else !

            • Gezza

               /  September 13, 2018

              I’m sure Alan wouldn’t do that. Too much against his principles. Probably.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s