There’s a saying the best things in life are free. Thanks to the annual government contribution that might even ring true in the KiwiSaver world.
Going for a walk, waving to the neighbours, your kids smiling at the teddy bears in windows, celebrating essential workers, standing by your gate at dawn on Anzac Day….One of the things lockdown brought home to many Kiwis was this – some of the best things in life are free.
Speaking of free – did you know the Government offers New Zealanders in KiwiSaver free money each year? It’s called the government contribution – a bit like an annual reward for being a good saver.
Here’s how it works.
Each year hundreds of Kiwis miss out on their free annual government contribution. Don’t be one of them. Generally speaking if you are in KiwiSaver, live in New Zealand and are aged between 18 and 65 and make a contribution or contributions to your account you could be eligible.
How much is it worth?
For every dollar you put into your KiwiSaver account the government puts in 50 cents – capped at $521.43 a year. To get the full $521.43 you need to have put in at least $1042.86 each year.
If you’re self-employed and don’t get an employer contribution that works out at putting in $20 a week.
What if I fall short of $1042.86?
You can still get some of the free money – the government matches 50 cents for every dollar you put in. But if you’re able to top up your KiwiSaver account with a lump sum and reach the full $1042.86 before June 30 even better – that way you’ll get the full $521.43.
Either way you can still get some free money – it’s not a case of all or nothing.
How do I get my free money?
You don’t have to do anything to claim your government contribution apart from putting in the right amount of money into your KiwiSaver account in the first place. KiwiSaver providers handle the process of getting the money into peoples’ accounts.
Are you missing out?
There’s no going back – if you don’t make the June 30 deadline each year to get your annual government contribution you can’t claim it later. That’s why it’s important to act now to make sure you get your free money this year – and every year. Remember - if you’re with Kiwi Wealth you can log into your KiwiSaver account and check if you’re on track to get the full $521.43.