Are You Missing Out on $521?

With the end of June fast approaching, it’s time to ensure you’ve contributed enough to your KiwiSaver for the maximum government contribution. Remember, the cut-off date is 30 June.

To help you out, we’ve put together a handy guide to make sure you don’t miss out on this opportunity.

How Much Do You Need to Contribute?

To qualify for the maximum government contribution of $521.43, you need to have put in at least $1,042.86 of your own money between 1 July 2023 and 30 June 2024.

Why It Matters

Consider these long-term benefits: Starting from scratch and contributing just $1,042.86 each year to receive the $521.43 (totalling $1,564) with a 7% net return (after fees & PIR 28%):

  • An 18-year-old today could accumulate over $500,000 by age 65.
  • A 40-year-old today could grow their savings to over $100,000 by age 65.

As you can see, these contributions really add up over time! Now, let’s make sure you’re on track to receive that government boost.

Steps to Ensure You Get the Government Contribution:

  1. Check Your Contributions: Contact your KiwiSaver provider to find out how much you’ve contributed over the last year. You might have already received an email with this information.
  2. Review Your Pay Slips: If your contribution is under $1,042.86 per annum, calculate how much you’ll have to contribute by 30 June to receive the maximum government contribution.
  3. Top Up If Needed: If you’re short, you can make a top-up directly to your provider via direct credit. Alternatively, you can make a tax payment via Internet Banking. Add your personal IRD number as reference and select ‘KSS’ tax type. The payment will flow through to your KiwiSaver account.

Important Points to Remember:

  • The government contribution applies to those aged 18 to 64.
  • Your employer’s contributions also count towards the required $1,042.86. Be sure to factor this in when reviewing your pay slips.
  • If you’re new to KiwiSaver, the $521.43 contribution will be prorated based on your time in the scheme (from 1 July to 30 June in your first year).

If you need further assistance, feel free to reach out to us. We’re here to help!