It’s that time of year again! When the Government will pay 50 cents for every dollar that you contribute to your KiwiSaver, up to a maximum of $521.43.
You may not check your KiwiSaver account often, but now is the time.
Have you contributed a minimum amount of $1,042.86 to your KiwiSaver account since last July?* If you’ve been a KiwiSaver member for the full year, (1 July to 30 June) and you’re between the ages of 18 and 65, you may qualify for the Government contribution, up to a maximum of $521.43.
If you’ve joined KiwiSaver part-way through this year, you’ll still be able to receive a Government contribution. It will just be based on the number of days that you have been a member.
And, if you’ve become eligible to withdraw your savings this year, you’ll still be able to receive a Government contribution too. It will just be based on the number of days in the year before you reached your eligibility milestone**.
Have I automatically qualified for the maximum amount of Government contribution?
If you’ve earned $34,762 or more this year and you have a minimum 3% KiwiSaver deduction coming out of your pay, chances are, you have qualified.
However, we would recommend you check the amount you have paid through to your KiwiSaver provider. This is just to make sure it has been going through like clockwork. And that way, you will know whether you are on track to receive the maximum Government contribution.
Making my own voluntary contributions…
If you earn under $34,762 or you don’t have regular KiwiSaver employee deductions coming out of your pay, because you’re self-employed or a contractor or you may have stopped working, and you’d like to receive the maximum Government contribution; you can make voluntary contributions or lump sum payments to ensure you receive the full $521.43 from the Government.
Voluntary contributions can be made through your KiwiSaver provider or Inland Revenue.
How much time do I have to make a payment?
You should try to make your payment at least 7 days before 30 June. This is because it takes a few days for your payment to be received into your KiwiSaver account. So, the earlier you make your payment the better.
Your KiwiSaver provider will then work behind the scenes to claim your Government contribution on your behalf. You don’t have to do anything. Just wait, until the credit appears in your KiwiSaver account. This usually happens a month or two later.
I’ve missed out on free money this year…
If you’re not able to meet the threshold for this year, there’s always next year. Put a plan in place to ensure you can budget the required amount of $20.06 a week. That’s about $87 a month.
If you’re puzzled about what’s going on with your existing KiwiSaver or you want to start KiwiSaver, have a chat to us. Take control, we don’t want you to miss out on free money.
*Employer contributions, Government contributions and amounts transferred from Australia under the Trans-Tasman retirement savings portability agreement do not count towards your contribution amount.
**The Government contribution stops when a member reaches the age of eligibility for NZ Super or they have been a KiwiSaver member for 5 years, whichever is the later.