New data from Inland Revenue shows the number of KiwiSaver hardship applications processed has fallen to a level not seen since 2024, but there is a warning it might not last.

After steadily increasing since 2022, the number of withdrawals reached a peak mid this year but has since fallen sharply, to 4,500 in August from 5,110 in July.

There was $39.7 million withdrawn, down from $45.2 million the month before.

Simplicity chief economist Shamubeel Eaqub said it was the lowest that had been seen for some time. He said it could sometimes be a timing issue, if people were making multiple withdrawals and had a wait period in between them.

Christine Liggins, who operates Debtfix, which handles hardship applications for some providers, said she had the sense that application numbers slowed mid year but had picked up again.

Eaqub said it was notable that there had been $11.1 billion in savings into the scheme in the last year compared to $1billion in its first year. “To me, that is extraordinary. KiwiSaver has been such a democratiser of savings in New Zealand.”

He said only 4% of that came from incentives from the government, which was the lowest level ever. “This is interesting in the travel towards compulsion, the government has largely exited the incentives game.”

Members withdrew $186.6 million for first homes, down from $214.9 million the month before.

The number of first-home withdrawals also fell, from 4660 in July to 4080 in August.