When it comes to KiwiSaver, any free money is good money

So, how much government money are you getting in your KiwiSaver this year?

Sure, it would be great to get the full amount of $260, but just in case you don’t have the whole $1043 in your back pocket to top up, it’s good to know that any dollar you put in will get 25 cents in there with it.

But time is running out – your contributions need to be in your KiwiSaver account by the end of June. The government money will then be paid into your account around the end of July.

KiwiSaver government contributions make a big difference

How much could this matter? Because the money is invested over decades, an 18 year old in KiwiSaver getting that $260 boost each year could have as much as $20,000 more for their retirement when they reach 65.

As we say, free money is good money!

You may be already getting the government money

If you’re an employee earning a salary of $34,762 a year or more and contribute at least the minimum 3%, then good news – you’ll be automatically getting the full $260 from the government. No need to do anything.

If that’s you, you can breathe easy and think of those around you. Who do you know that could be missing out? Tens of thousands do. Make sure to mention that free money is better than nothing.

Topping up your KiwiSaver if you haven’t put in $1043

All of this matters most if you are self-employed, work part time, are a stay-at-home parent or are on a savings suspension – those who don’t have regular money going into KiwiSaver.

Your KiwiSaver provider will be able to tell you whether you’ve contributed less than $1043 this year. If so, there’s still time to top up your account by the end of June.

Topping up at this time of year – whatever you can manage – gets the government boost. So even if you’ve got $20 to spare, put it in – you'll get $5 from the government.

Set yourself up for next year’s government money

If you typically put in less than $1043 per year, here's how to set yourself up to get the full government money next year.

The KiwiSaver year runs from July to June. To make sure you don’t get caught short next year, set up an automatic payment with whatever you can afford starting this July. If you can put in $20 or more a week, that will get you the maximum government contribution.

This way, when next year rolls around, that free money will flow in without you needing to check anything.

KiwiSaver government money FAQs

How does the KiwiSaver government boost work?

Put a dollar into KiwiSaver and the government matches it with 50 cents – up to $521 every year. To get the full amount, you need to be at least 18 and putting in at least $1043 each year between 1 July and 30 June. That’s just slightly more than $20 a week.

If you haven’t been putting in that much, you can top up your KiwiSaver account before the end of June each year to get the full government match. Contact your provider to make arrangements – or you might even be able to do it online.

Even if you don’t put in the full $1043, you still get the government’s 50 cents for every dollar you put in.

How do I know if I have contributed enough to get all the government money?

You can check with your KiwiSaver provider if you’re not sure how much you’ve contributed.

You’ll automatically get the maximum government money if you've been a KiwiSaver member for the full year (from 1 July to 30 June), are aged 18 to 65 and the following apply:

You’re employed
You earn at least $34,762 per year
You put in at least 3% to KiwiSaver

You’ll also get it if you've been contributing more than $20 a week, on average, for the full year.

You can also receive all the government money if you've made one or more lump sum contributions totalling at least $1043 between 1 July and 30 June.

What if I haven’t put in enough?

Check with your KiwiSaver provider – if it doesn’t look like you’ll contribute at least $1043 to your KiwiSaver account by 30 June this year, you can top up before then to make up the difference. But either way, you’ll still get 50 cents for every dollar you’ve put in.

Do my employee contributions count?

Yes. This is why if you earn $34,762 a year or more, there’s no need to top up your account – you’ve already put in enough to get the maximum government money this year.

Do my employer contributions count?

No. Like the government money, your employer’s contributions are another example of matching funds that go into your account when you put in money of your own.

When you put in at least the minimum 3% of your salary or wages as an employee, your employer needs to put in at least 3% as well. (Actually, it’s slightly less because the employer money is taxed before it goes into your account.)

Bottom line: if you’ve suspended your savings, you miss out on both the government and employer money.

What are the dates?

The KiwiSaver year runs from 1 July to 30 June, so aim to get your money in by mid-June each year (providers need a bit of time to process everything before year’s end).

If you joined KiwiSaver part way through the year, you’ll be eligible for a smaller amount of government money, based on how long you’ve been in.

Does this happen every year?

Yep! You can get the government’s 50 cents on every dollar each year, up to a maximum of $521.

What if I’m not sure which KiwiSaver provider I’m with?

Overcome that overspending today

Ola fuafua lelei – it’s Samoan Language Week!

Comments

13 June 22
Tom from Sorted

Hi Carol, thanks – yes, you should be able to rejoin KiwiSaver in the fund of your choice. Simply contact a KiwiSaver provider directly to do so. That said, have a look at our "How to pick the right KiwiSaver fund for you" guide first!
12 June 22
Carol

I am 67 years old and I cancelled my kiwisaver account when I turned 65.
can I rejoin kiwisaver and make my own contributions?
31 May 22
Catherine

How does the govt know how much I have put in?
17 May 22
Tom from Sorted

Hi Feisy, it will be next year. The KiwiSaver year runs from July to June, and during that time he will have to contribute the $1,043 while he is 18 and over. That's just a bit more than $20 a week. He'll need to do that each year in order to get the government money, but the good news is, he's starting out right!
17 May 22
Feisy

Hi Tom, My son will turn 18 in July 22. Will he be getting the Govt contribution this year, or will it be next year?
Yes, his balance is over $1043.
Cheers
18 June 21
Jan

Kia ora Tom, does this apply even if I'm a NZ Citizen who has been resident overseas and working PAYE overseas for the whole of this tax year? Nga mihi, Jan
18 June 21
Jill Mate

Do over 65's get the extra from the govt?
8 June 21
Mohammed Khan

i am currently living melbourne, Australia. I am looking at using my Kiwisaver as a deposit for my first home. Can i transfer my kiwisaver funds from ANZ NZ to Australia.

Please advice.
4 June 21
Tom from Sorted

Thanks for commenting! Kevin, you are correct in that the government contribution ends at 65. Maria, your contribution is separate from the fees you'll be charged afterwards. Finally, it is the law for employers to contribute, although there are times when they offer it as part of the salary package. See ird.govt.nz/kiwisaver/kiwisaver-employers for the rules on this.
1 June 21
Kevin Campbell

Would be informative to advise that the Government contribution does not apply if a Kiwisaver has attained the age of 65 years. If I am wrong on that, please advise.

Nga mihi
Kevin