1.8 million KiwiSavers will get theirs – will you?
If past years are any guide, close to 1.8 million people (76%) will get a government contribution to their KiwiSaver accounts this year.
You’ll be one of them, right? How about those you’re close to?
Hope so. It’s practically free money, so it’s always a downer to hear about anyone who misses out on the government’s contribution. Especially if it’s just because they didn’t realise it was there for the having.
Over a lifetime’s KiwiSaver experience, this could grow to be worth as much as $36,000, so it’s a welcome boost.
Here’s what you need to know about the government contributing to your KiwiSaver
- The government will add 50 cents for every dollar you put in to KiwiSaver, up to a maximum of $521 each year.
- That means that you need to put in at least $1,043 each year before the end of June to get the full government whack.
- If you earn at least $35,000 and have been contributing 3%, you already are one of the many getting the full amount. No need to do anything.
- But if you’ve earned less than $35,000 or have been not contributing regularly to your KiwiSaver account, there’s good news: you can still join those who get the full $521 each year.
- You simply have to make sure you put in at least $1,043 for the year by the middle of June. The $521 will be in your KiwiSaver by late July or early August.
- If you’re not sure, call your KiwiSaver provider to check if you’re getting all you could be. If you can’t remember your provider’s details you can find out through a myIR account on the KiwiSaver website.
Make sure you’re getting your due
Recently I was talking to a friend who just transitioned from being a cook to an Uber driver. Midway through the conversation I realised, especially because of his change of work, he might have overlooked getting enough into his KiwiSaver account to receive the full $521. Work transitions can be one of the reasons people tend to miss out.
There are always more people who could benefit from the government’s KiwiSaver contribution. Again, using the past as a guide, as many as 24% could miss out entirely. Last year that was more than a half million of us.
There will also be many of us who receive some government money, but could have got the full $521 if we had managed to put in a bit more: another half million of us (23%).
To make sure you’re part of the group getting their full due, the trick is to check how much you’ve put in so far this year and top up if you haven’t put in a full $1,043. A quick call to your KiwiSaver provider should do it.
These are the last weeks of the year to get this done, so make sure to join the 1.8 million or so of us who will get paid. Hopefully this time around it will be many more than that.