How to get your KiwiSaver Government contribution?
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How to get your KiwiSaver Government contribution?
27 May 2024
Did you know you can get up to $521.43 from the Government – every year? One of the benefits of KiwiSaver is that you’re not the only one contributing to your retirement savings. If you’re employed, your employer must also contribute at least 3% to your KiwiSaver account (though some choose to contribute even more). But did you know that the Government also chips in?
Summary
Each year, if you're aged 18-64, the Government will add up to $521.43 to your KiwiSaver account. For every $1 you contribute (employee + voluntary contributions), the Government adds 50 cents, up to a maximum of $521.43. To get the full amount, you need to contribute at least $1,042.86 annually. Even if you contribute less, you'll still get a 50% match on whatever you put in. This is a fantastic way to boost your retirement savings with minimal effort.
Yes, there is $521.43 up for grabs
The Government's contribution is straightforward:
- For every $1 you put in, the Government adds 50 cents.
- To get the maximum $521.43, you need to contribute at least $1,042.86 annually
For example:
- Contribute $200, and you'll get an extra $100 from the Government.
- Contribute $650, and you'll receive $325
Pro-rated contributions: If you joined KiwiSaver partway through the year, turned 18 or 65, or moved/returned from overseas during the year, the Government's contribution is pro-rated.
Are you eligible to receive this bonus?
To receive the Government contribution, you must:
- Be aged 18-64
- Live in New Zealand
Exceptions include: Government employees, people working as volunteers for charitable organisations, and people employed in a job that meets one or more of the requirements of the Student Loan Scheme Act 2011
Check your contributions
Kōura Member: Check the Kōura portal or My IR section on the IRD website for your employee contributions. The Kōura portal will also have a record of your voluntary contributions
Joined Kōura (part way through the year): You will be able to check My IR section on the IRD website for all your employee contributions throughout the year. The Kōura portal will only show your voluntary contributions made after joining Kōura.
Not with Kōura: Check the My IR section on the IRD website for your employee contributions.
Key Tip: Make sure you check your contributions at least two weeks before the 30 June deadline. This way, if you have contributed less than $1.042.86, you can still top up your account and make up the difference.
Boost your retirement savings
The bottom line is… don’t miss out on this great KiwiSaver feature. By taking advantage of the KiwiSaver government contribution, you can significantly boost your retirement savings. With your contributions, employer contributions and Government contributions – plus the power of compounding returns – your KiwiSaver balance has the potential to grow significantly over time.
Remember: Every dollar counts. Make sure you're making the most of this benefit.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion, and seek independent guidance.