TVNZ One News recently reported that some people who are signed up to Kiwisaver may be missing out on hundreds of dollars every year.
The Government has set aside $785 million to top up Kiwisaver contributions, almost half of which goes unallocated. That’s around $368 million waiting to be claimed!
How does the Kiwisaver tax credit work?
The amount the government contributes (tax credit) depends on how much you put in your fund. As long as you contribute a minimum of $1,042.86 a year, the government will add another $521.43.
That’s a return of 50% on the first $1,042.86 you invest. Where else can you get this sort of return?
Image source: ANZ
You must meet the contribution requirements, but adding at least $1042 to your KiwiSaver account by June 30. And the tax credit isn't available to those under 18, over 65 and those not in KiwiSaver.
The maximum Government top up you can be eligible for amounts to $521.43 and is paid out in July and August each year automatically by your KiwiSaver provider.
Check today to make sure you qualify
The deadline is 30 June, so take action today! Find out who your provider is, how much you have contributed. It’s your money that the government has set aside for your retirement, you just need to make sure you qualify to claim it.
If you’re contributing to Kiwisaver and earning $35,000 per year or more you’re probably OK. But if you’ve recently taken time off work, you work part time, or you’re self-employed and not making the voluntary contributions you might miss out.
Not all Kiwisaver providers are created equal. In fact, recent research revealed that the three biggest Kiwisaver providers scored some of the lowest levels of customer satisfaction. If you’re still with your default Kiwisaver provider, or you’re not sure you’re getting the best service or returns, then this is a good time to get your Kiwisaver sorted