1
00:00:07,133 --> 00:00:10,453
Speaker 1: You're listening to the Saturday Morning with Jack team podcast

2
00:00:10,573 --> 00:00:11,453
Speaker 1: from News Talks.

3
00:00:11,453 --> 00:00:15,133
Speaker 2: A'd be so about five years ago, eighteen thousand New

4
00:00:15,213 --> 00:00:20,893
Speaker 2: Zealanders were making key we Saver hardship grant requests. But

5
00:00:21,013 --> 00:00:23,933
Speaker 2: in the year to June, fifty thousand New Zealanders have

6
00:00:23,973 --> 00:00:25,933
Speaker 2: done it, so two and a half times as many.

7
00:00:26,013 --> 00:00:29,173
Speaker 2: And this has massive implications down the line because of

8
00:00:29,213 --> 00:00:32,693
Speaker 2: course your key we Saver it tends to compound over time.

9
00:00:33,013 --> 00:00:35,733
Speaker 2: Lisa Dudson is here with her thoughts for us this morning.

10
00:00:35,773 --> 00:00:38,453
Speaker 2: Hender Lisa, good morning Jack. Do you know in some

11
00:00:38,493 --> 00:00:41,333
Speaker 2: respects I'm surprised it's not more than fifty thousand people

12
00:00:41,373 --> 00:00:43,293
Speaker 2: because if you look at it as the total number

13
00:00:43,453 --> 00:00:45,853
Speaker 2: of key we Saver members, I think it's about one

14
00:00:45,933 --> 00:00:48,773
Speaker 2: point six percent of key we Save members are making

15
00:00:48,813 --> 00:00:52,693
Speaker 2: hardship grant requests, which is while you know much more

16
00:00:52,773 --> 00:00:54,973
Speaker 2: than five years ago that that's still as a total

17
00:00:55,013 --> 00:00:57,853
Speaker 2: percentage of key we Saber members, it's not. It's not

18
00:00:58,053 --> 00:01:01,053
Speaker 2: massively high, right, It's not fifteen or twenty percent or

19
00:01:01,093 --> 00:01:04,413
Speaker 2: something like that. But I suppose this just speaks to

20
00:01:04,453 --> 00:01:06,173
Speaker 2: the kind of economic conditions that people are.

21
00:01:06,053 --> 00:01:08,573
Speaker 3: Experien Yeah, yeah, it does.

22
00:01:08,653 --> 00:01:11,213
Speaker 4: And Look, there's no question that it's pretty challenging out there.

23
00:01:11,253 --> 00:01:13,013
Speaker 4: I think the other side of it is though, that

24
00:01:13,133 --> 00:01:15,493
Speaker 4: there is quite a significant string in the tale of

25
00:01:16,053 --> 00:01:20,453
Speaker 4: taking your TV favor funds out. And that recent article

26
00:01:20,493 --> 00:01:22,173
Speaker 4: that came out was talking about that. You know, there's

27
00:01:22,213 --> 00:01:25,613
Speaker 4: a forty thousand dollar opportunity cost for someone inning seventy

28
00:01:25,653 --> 00:01:27,493
Speaker 4: five thousand dollars a year in their mid thirty So,

29
00:01:27,573 --> 00:01:30,533
Speaker 4: you know, that's pretty significant, and I don't know where

30
00:01:30,573 --> 00:01:34,613
Speaker 4: the people really understand. You know, what takes me someone

31
00:01:34,573 --> 00:01:36,813
Speaker 4: of your keep me save money out now might mean

32
00:01:36,813 --> 00:01:37,453
Speaker 4: in the future.

33
00:01:37,693 --> 00:01:39,493
Speaker 2: Yeah, right, So talk to us a bit more about

34
00:01:39,493 --> 00:01:43,293
Speaker 2: that because obviously it compounds over time, which means that

35
00:01:43,613 --> 00:01:45,933
Speaker 2: what ever you take out now is going to be magnified.

36
00:01:46,613 --> 00:01:46,813
Speaker 3: Yeah.

37
00:01:46,893 --> 00:01:50,093
Speaker 4: Yeah, And look at look it is tough because we

38
00:01:50,213 --> 00:01:52,453
Speaker 4: set up I've got a clinical national capital that for

39
00:01:52,533 --> 00:01:54,453
Speaker 4: QV Save Advice business, and so a couple of years

40
00:01:54,453 --> 00:01:56,893
Speaker 4: ago we set up our Facebook page q we Save

41
00:01:57,013 --> 00:01:58,373
Speaker 4: Money and the best thing which was to try and

42
00:01:58,373 --> 00:02:01,133
Speaker 4: help on the education side of things. Right, So what's

43
00:02:01,173 --> 00:02:03,373
Speaker 4: happened with that Facebook page in the last few years

44
00:02:03,453 --> 00:02:05,893
Speaker 4: has now we've almost got four thousand members and almost

45
00:02:05,893 --> 00:02:09,333
Speaker 4: all the commonversation is around taking your keyvsavor funds out.

46
00:02:09,573 --> 00:02:11,453
Speaker 4: So in some ways it's great that there's a resource

47
00:02:11,493 --> 00:02:14,213
Speaker 4: out there to give people some guidance on that. But

48
00:02:14,293 --> 00:02:17,413
Speaker 4: these are some of the examples that I've seen recently. Right,

49
00:02:17,413 --> 00:02:19,573
Speaker 4: you know, people saying, Okay, well I need I need

50
00:02:19,613 --> 00:02:21,893
Speaker 4: fifteen thousand dollars out of my kevsaver in order to

51
00:02:21,893 --> 00:02:24,133
Speaker 4: buy a new car, right, and I'm like, okay, well,

52
00:02:24,173 --> 00:02:26,453
Speaker 4: I'm not sure that you're reading this than fifteen thousand,

53
00:02:26,573 --> 00:02:29,493
Speaker 4: or comments around I'd like to send the keysaver out

54
00:02:29,533 --> 00:02:31,253
Speaker 4: because I've gotten stuff into a bit of trouble, but

55
00:02:31,373 --> 00:02:34,653
Speaker 4: there's a lot of gambling transactions on my account. Or

56
00:02:34,693 --> 00:02:37,253
Speaker 4: a recent one that I saw in the last couple

57
00:02:37,253 --> 00:02:39,853
Speaker 4: of weeks was saying, you know, like I got declined,

58
00:02:40,693 --> 00:02:44,053
Speaker 4: and they took a screenshot of what the leader was

59
00:02:44,053 --> 00:02:45,853
Speaker 4: and it was saying, you know, we noticed the high

60
00:02:45,933 --> 00:02:49,253
Speaker 4: level of discretionary spending. So on one hand, it's wonderful

61
00:02:49,333 --> 00:02:52,133
Speaker 4: that there is this tool that people can access their

62
00:02:52,173 --> 00:02:54,413
Speaker 4: KEYVSAB then when they're doing.

63
00:02:54,253 --> 00:02:55,693
Speaker 3: It tough, and quite frankly, there is a lot of

64
00:02:55,693 --> 00:02:56,493
Speaker 3: people doing it tough.

65
00:02:56,893 --> 00:02:59,773
Speaker 4: On the other hand, I'm kind of going, is it

66
00:02:59,813 --> 00:03:04,013
Speaker 4: too easy, and you know, nice to have the you know,

67
00:03:04,093 --> 00:03:05,973
Speaker 4: the safety there. But on the other side of it

68
00:03:06,213 --> 00:03:08,613
Speaker 4: is too easy. And I see people in there going, oh, well,

69
00:03:08,653 --> 00:03:11,493
Speaker 4: I'm on my third or my fourth round. Yeah, So

70
00:03:11,813 --> 00:03:14,133
Speaker 4: you know, I guess there's two sides to it.

71
00:03:14,453 --> 00:03:17,013
Speaker 2: So I went through the id's website and they say

72
00:03:17,053 --> 00:03:19,893
Speaker 2: to withdraw savings, you need to provide evidence you are

73
00:03:19,933 --> 00:03:24,973
Speaker 2: suffering significant financial hardship. I mean, so do you think

74
00:03:24,973 --> 00:03:27,973
Speaker 2: that maybe just the criteria aren't kind of strict enough,

75
00:03:28,053 --> 00:03:30,533
Speaker 2: or if the application maybe isn't quite strict enough.

76
00:03:31,133 --> 00:03:33,213
Speaker 4: Well, I mean idis, you know, I mean that's in

77
00:03:33,253 --> 00:03:35,093
Speaker 4: some ways it's fairly black and white, but it's always

78
00:03:35,093 --> 00:03:38,213
Speaker 4: open to interpretation. And I'm not the person on the

79
00:03:38,253 --> 00:03:42,413
Speaker 4: other end, you know, receiving those applications and making.

80
00:03:42,133 --> 00:03:44,053
Speaker 3: Those approvals or declining them.

81
00:03:44,053 --> 00:03:46,813
Speaker 4: But what I am seeing in these forums is I

82
00:03:46,933 --> 00:03:48,853
Speaker 4: kind of go I just get the feeling that.

83
00:03:48,773 --> 00:03:50,773
Speaker 3: Some people are using it a little bit too easily

84
00:03:50,893 --> 00:03:52,253
Speaker 3: because it is there and.

85
00:03:52,573 --> 00:03:56,093
Speaker 4: Not actually realizing, you know, what the implications are over

86
00:03:56,093 --> 00:03:58,053
Speaker 4: the long term, because very few people would have actually

87
00:03:58,053 --> 00:04:00,333
Speaker 4: got the calculator out and said, is.

88
00:04:00,333 --> 00:04:01,613
Speaker 3: There a better way of doing this?

89
00:04:01,813 --> 00:04:05,173
Speaker 4: Because there is a significant cost to my financial future.

90
00:04:05,373 --> 00:04:07,973
Speaker 2: Yeah, that's the thing. So they've got a few like

91
00:04:08,053 --> 00:04:10,253
Speaker 2: examples that they put in and it's stuff like can't

92
00:04:10,293 --> 00:04:14,573
Speaker 2: meet minimum living expenses, you need to modify your homes

93
00:04:14,573 --> 00:04:17,053
Speaker 2: to meet your special needs, can't pay the mortgage on

94
00:04:17,053 --> 00:04:19,853
Speaker 2: the home you live in, that kind of stuff. But

95
00:04:19,933 --> 00:04:22,733
Speaker 2: there's also stuff that applies for family members, which is interesting,

96
00:04:22,893 --> 00:04:26,933
Speaker 2: So funeral costs for a dependent family member, palliative care

97
00:04:27,013 --> 00:04:29,133
Speaker 2: for a member or members dependent, so you know, the

98
00:04:29,213 --> 00:04:32,133
Speaker 2: stuff like that that also applies, which you know you

99
00:04:32,133 --> 00:04:35,813
Speaker 2: can imagine there would be an evidential base. But when

100
00:04:35,853 --> 00:04:37,693
Speaker 2: you see a surage like that, you do have to wonder,

101
00:04:37,773 --> 00:04:41,253
Speaker 2: you know, if it's paying for cars or for for

102
00:04:41,573 --> 00:04:45,813
Speaker 2: you know, nice want to haves rather the need to

103
00:04:45,853 --> 00:04:47,973
Speaker 2: have you do sort of wonder if people are maybe well,

104
00:04:48,453 --> 00:04:48,933
Speaker 2: but also so.

105
00:04:48,973 --> 00:04:50,893
Speaker 4: People might still need that car.

106
00:04:52,413 --> 00:04:54,013
Speaker 2: You need to spend fifteen grand, right.

107
00:04:54,373 --> 00:04:55,013
Speaker 3: Well, that's right.

108
00:04:55,093 --> 00:04:57,533
Speaker 4: And then it's also what is the behavior that's been

109
00:04:57,573 --> 00:04:59,653
Speaker 4: going on to get to that point, Like, you know,

110
00:05:00,093 --> 00:05:02,293
Speaker 4: have you been super careful with your money, have you

111
00:05:02,333 --> 00:05:05,293
Speaker 4: been to see a budget advisor? You know, have you

112
00:05:05,373 --> 00:05:07,293
Speaker 4: tried to find some extra try and work of you

113
00:05:07,293 --> 00:05:08,333
Speaker 4: you know, I had a bit of a tidy up

114
00:05:08,373 --> 00:05:10,413
Speaker 4: of a garage, and you sold a few things on

115
00:05:10,573 --> 00:05:13,093
Speaker 4: you know, trade me and Facebook to try and raise

116
00:05:13,133 --> 00:05:14,853
Speaker 4: some funds. Have you done all those.

117
00:05:14,533 --> 00:05:16,413
Speaker 3: Things before you got to that point?

118
00:05:16,453 --> 00:05:19,213
Speaker 4: So I don't needsarily know whether I question for most

119
00:05:19,213 --> 00:05:21,213
Speaker 4: of it people at that point, but it's just like

120
00:05:21,373 --> 00:05:22,133
Speaker 4: what's gone on.

121
00:05:22,133 --> 00:05:24,213
Speaker 3: For them to get to that point? Yeah? And was

122
00:05:24,253 --> 00:05:26,013
Speaker 3: that absolutely necessary?

123
00:05:26,293 --> 00:05:29,853
Speaker 2: Yeah, it's interesting. You know, my thoughts on cars, You

124
00:05:29,973 --> 00:05:31,653
Speaker 2: never never want to be a dip for a car.

125
00:05:31,973 --> 00:05:34,013
Speaker 2: Never never take out a loan for a car.

126
00:05:34,813 --> 00:05:37,613
Speaker 4: Absolutely you can get you could probably get a pretty

127
00:05:37,653 --> 00:05:38,053
Speaker 4: good car.

128
00:05:37,973 --> 00:05:41,133
Speaker 2: For five well, yeah, exactly when in the when you're

129
00:05:41,133 --> 00:05:43,613
Speaker 2: just you know, my idea of a car upgrade is

130
00:05:43,653 --> 00:05:46,053
Speaker 2: going from a Toylet Corolla to a Toyter Corolla.

131
00:05:46,133 --> 00:05:48,373
Speaker 4: So you know, so you're still driving a pretty cheap car.

132
00:05:48,453 --> 00:05:50,613
Speaker 2: Jea're still driving a toy to Corolla. Lisa, you be

133
00:05:50,693 --> 00:05:55,133
Speaker 2: pleased that, Yeah, there you go. It's slightly newer than

134
00:05:55,173 --> 00:05:58,093
Speaker 2: the last tot of Corolla. You know, so very fantsy

135
00:05:58,093 --> 00:06:00,773
Speaker 2: that you go. All right, great to chat as always

136
00:06:00,813 --> 00:06:03,693
Speaker 2: appreciate your time, Lisa duds to that personal finance expert

137
00:06:03,773 --> 00:06:03,933
Speaker 2: there

138
00:06:04,533 --> 00:06:08,093
Speaker 1: For more from Saturday Morning with Listen live to News

139
00:06:08,133 --> 00:06:11,013
Speaker 1: Talks at B from nine am Saturday, or follow the

140
00:06:11,053 --> 00:06:12,493
Speaker 1: podcast on iHeartRadio