KiwiSaver: Here, have some free money!

By Simon O’Neill

Here we are again, nearly at the end of theKiwiSaver calendar year, when the Government comes around with their annual goodie bag of free money. But the question is, are you in line to get some?

If you’re PAYE, earning more than $35k, and contributing 3%, you’ll get your full member tax credit from the Government.

If you’re self-employed, you’ll ned to check that you’ve contributed at least $1043.00. If not, this needs to be into your KiwiSaver provider by June 28th at the latest.

And note that employer contributions, past contributions and funds moved from Australian retirement schemes do not count towards the $1043.00.

Putting this money in ($1042.86 that I rounded up) will qualify your KiwiSaver account for a great boost of FREE money from the Government totalling $521.00.

Every little bit helps, so even if you can’t contribute the full amount, the Government will still match you $0.50 on the dollar, up to the maximum of $521.00.

Anyone aged 18-65 is eligible (or older if you haven’t been a member of a KiwiSaver scheme for five years) whether you’re working or not. You must also be mainly living in NZ.

If you've just joined a KiwiSaver scheme within the year to 30 June 2021, the Government will contribute 50 cents for every dollar you contribute, up to a pro-rata amount based on the number of days you have been in KiwiSaver.

Plus, while you’re thinking about KiwiSaver, now isa great time to review where things are at with your KiwiSaver: which provider you have (a bank or a KiwiSaver specialist provider), the tax rate you’re on and your contribution rate.

Simon O'Neill(FSP534466) is a Financial Adviser with Velocity Financial (FSP95466). No investment decision should be taken based on the information in this blog alone. A disclosure statement is available upon request. 

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