Contributing to KiwiSaver? Did you know that for every dollar you put in, the government will match it with 50 cents – up to $521.43 each year?
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That’s the amount of the “member tax credit”, a phrase that KiwiSaver providers and the government use to describe this matching of funds.
Last year more than 675,000 people missed out on the full government payment because they hadn’t contributed enough. This year sorted.org.nz has been actively promoting the Big Five Hundy to encourage people to get their full entitlement.
To get the full amount, you need to be aged 18 to 65 and have contributed $1,042.86 between 1 July and 30 June each year. That’s $20.06 a week.
If you’re an employee earning $34,762 or more and you contribute the minimum (3 percent) to KiwiSaver, you won’t have to do a thing – you’ve contributed enough. The “member tax credit” will be added to your account in late July or early August.
But what if you haven’t been putting in that much? Make a catch-up payment into your KiwiSaver account in June and you’ll still be able to get the full government match. The payment has to be in your KiwiSaver account by 30 June, so pay it in by mid-June to allow time for processing.
Don’t miss out on easy money!
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This information is available to Consumer members only.