A record number of people have taken a bite out of their Kiwisaver to satisfy financial hardship.
New Zealanders took more than $109 million out of their KiwiSaver accounts last year.
The Financial Services Council's Richard Klipin says withdrawal numbers would be expected to naturally grow alongside Kiwisaver membership.
But he told Kate Hawkesby people have valid reasons for needing the money - and those struggling to manage finances often look for money where ever they can.
"The main thing for consumers to be aware of is that if you take money out of your KiwiSaver which is designed for long-term retirement planning, those early amounts withdrawn will really affect your long-term outcome."
He says it's not easy to access KiwiSaver for hardship, but it's not impossible.
"I guess one of the things to consider as a system is how do you help people in New Zealand better budget and better manage their cash flows?"
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