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Future lifestyle plans.....

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mrsturtle View Drop Down
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    Posted: 02 November 2008 at 4:39pm
We have this plan through the bank where we put money in every month and they invest it or something and then when we are 50 we can have it. There is abit in it and would be soo great right now as im not working and we would really love to use it as a deposit on a house, the statement says if your in financial hardship you can withdraw it which were not we are managing but were not rolling in money either... We are thinking of moving to kiwibank and were wondering if you can take it out to "transfer it" which we wouldnt but the bank wouldnt know that. Has anyone got anything similar that they have used? Sorry hope this all makes sense having a total pregnancy brain day today.
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caliandjack View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote caliandjack Quote  Post ReplyReply Direct Link To This Post Posted: 02 November 2008 at 4:45pm
I have something similar and so did a woman I worked with, having a baby was considered financial hardship and she was able to get her money out.
I'll be looking to do the same with mine.
Although at the moment its invested with AXA and they've frozen some accounts so may not be able to get at it earlier.
Something to be aware of.

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Angel June 2012
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mrsturtle View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote mrsturtle Quote  Post ReplyReply Direct Link To This Post Posted: 02 November 2008 at 4:50pm
Oh crap im pretty sure ours is with axa too but through the bnz......
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caliandjack View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote caliandjack Quote  Post ReplyReply Direct Link To This Post Posted: 02 November 2008 at 5:03pm
Yup thats the same one as I've got, if its invested in any of the mortgage funds, you may not get your money back at this stage.

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Angel June 2012
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MrsMojo View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote MrsMojo Quote  Post ReplyReply Direct Link To This Post Posted: 02 November 2008 at 9:03pm

If your savings scheme is locked in until age 50 it is probably a superannuation which will be audited by the government actuary.  There are only certain circumstances in which money can be withdrawn from these schemes and evidence needs to be provided.  Finance companies need to be strict as if the government actuary identifies that they've been lax about letting people withdraw that don't necessarily fit within the circumstances the finance company will be held accountable.

There may be a clause to transfer to another locked in superannuation scheme but it's not likely that you'd be able to transfer to an unlocked scheme - therefore you wouldn't be able to withdraw the money anyway.

Having a baby is considered normal, like having a mortgage or a credit card, so just having a baby would not make you eligible to withdraw on the grounds of financial hardship.  However having a baby (and therefore being on one income) may put you in a position of acute finanacial hardship in which case you would be able to apply to the scheme trustees to allow you to partially or fully withdraw your funds.  Generally speaking financial hardship is considered to be when you cannot pay your bills and you struggle afford the simple necessities of life.

If you want more details of the kind of evidence that trustees would consider relevant as proof of financial hardship let me know and I'm happy to post, it's probably best to do it from work where the info is at my fingertips rather than typing it from the top of my head (I've shifted jobs this year and it's been about 6 months since I last reviewed an application for withdrawal on the grounds of financial hardship).

If you do qualify for withdrawal on the grounds of financial hardship you may as well fill in the forms and gather the evidence asap even if you're in one of the frozen schemes.  It takes awhile for claims to be assessed so the sooner you get the ball rolling the sooner you can get the money if you're eligible.

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MrsMojo View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote MrsMojo Quote  Post ReplyReply Direct Link To This Post Posted: 02 November 2008 at 9:09pm

Whoops, I just read your first post properly. 

If you're managing and only intending on using that money as a house deposit then no, you wouldn't qualify for withdrawal under the grounds of hardship.  Financial hardship is reserved for people who are actually struggling to keep afloat.

Also as I said in my previous post it's likely that the condition of transfer is that you must transfer into another locked in super scheme and yes, the bank will know if it's locked in or not they will review a copy of the trust deed of the scheme you're planning on transferring into to ensure it meets their requirements before allowing you to transfer and one of those requirements will be the age it becomes unlocked.

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linda View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote linda Quote  Post ReplyReply Direct Link To This Post Posted: 02 November 2008 at 9:18pm
That was timely advice! DH was looking to withdrawal from his Superannuation because of 'financial hardship' but when we read about all the forms and evidence etc that they needed we weren't sure if it was worth it. Having said that though, we are having twins and it will be tough going back to work with four kids. I've done the sums and while not working our debts will keep accumulating and even should I go back to work the amount left over from working to paying child care costs is not a lot. So in a way we might not be in financial hardship now but could be after some time. Probably best that we look into the hardship option to see if it can be done.


Alex 6 and Harry 8
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MrsMojo View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote MrsMojo Quote  Post ReplyReply Direct Link To This Post Posted: 02 November 2008 at 9:27pm

Originally posted by linda linda wrote:

So in a way we might not be in financial hardship now but could be after some time. Probably best that we look into the hardship option to see if it can be done.

 

You may not be approved right now depending on your current balance sheets but as your debts continue to accumulate you can keep on applying and providing up-to-date evidence until  they do approve.  Try filling in the forms and have a look through.  The important thing is to see if you come out with a credit or a deficit on the balance sheet and compare that to your debts.  If you can get a budget adviser or accountant to look over things and write a letter to back up your claim that would be helpful too.



Edited by MrsMojo
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clover View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote clover Quote  Post ReplyReply Direct Link To This Post Posted: 03 November 2008 at 10:00am
Jo's advice is spot on!

Some schemes allow withdrawal of a certain percentage of the funds (one of the investments I work with allows a 20% withdrawal of your total balance in any 12 month period) so you may be able to get access to a portion although it would be unlikely that you would be able to withdraw the total balance.

As Jo mentioned, having a baby alone would not consititute financial hardship.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SindyLawercr236863 Quote  Post ReplyReply Direct Link To This Post Posted: 20 January 2020 at 9:52pm
My future lifestyle plans are to settle down finally. I've worked a lot, my kids are grown and I have to think about things like RRIF and other financial things. I was lucky to bump into an article here and I found out tons of helpful info about a registered retirement income fund. Frankly speaking, I didn't know lots of aspects before reading it.
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