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

Sure, it would be great to get the full amount of $521, 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 50 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 $521 boost each year could have as much as $36,000 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 $521 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 $10 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.

Comments (11)

Gravatar for Jan

Jan

8:48pm | 18 Jun 2021

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

Gravatar for Jill Mate

Jill Mate

12:53pm | 18 Jun 2021

Do over 65's get the extra from the govt?

Gravatar for Mohammed Khan

Mohammed Khan

7:27pm | 8 Jun 2021

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.

Gravatar for Tom from Sorted

Tom from Sorted

10:17am | 4 Jun 2021

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.

Gravatar for Kevin Campbell

Kevin Campbell

4:11pm | 1 Jun 2021

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

Gravatar for Maria Snegirev

Maria Snegirev

10:17pm | 29 May 2021

Does my total contribution include or exclude administration fees charged by the Kiwisaver provider?

Gravatar for

7:11pm | 28 May 2021

I wonder how many people know that it is not compulsory for the employer to contribute to an employees kiwisaver scheme.

Gravatar for Tom from Sorted

Tom from Sorted

6:35pm | 28 May 2021

Thank you! But the thing to check is your investment earnings, since that PIE tax was because of that. We see your point about government money going and coming overall, but the inflow and outflow were unrelated. We're guessing your investment returns made it worthwhile.

Gravatar for

11:27am | 27 May 2021

Thanks for your reply Tom, double-checked statement / provider as suggested and nothing to do with rise & fall of markets. Government Contribution $521.43 paid in and then PIE Tax $510.48 taken out so I guess the bottom line is that the reality of the Government Contribution to my Kiwisaver is $10.95, so yes better off.

Gravatar for Tom from Sorted

Tom from Sorted

4:12pm | 26 May 2021

Thanks for commenting – you could check with your provider directly, but we're guessing that there were two unrelated things that happened in your account around the same time: you received your government money, and separately the government taxed your investment earnings. Or perhaps your account balance went down at that time because the market value of your investments did as well. KiwiSaver funds will do that. Bottom line: you would've been $521 less well off overall if you hadn't gotten the government contribution.