Are you missing out on the free KiwiSaver money? | Christian Kiwisaver Scheme

Every year there are some KiwiSaver members, including members of the Christian KiwiSaver Scheme, missing out on receiving the Government’s free KiwiSaver money. That is like flushing money down the drain!

The Government paid $697 million, yes that’s $697 million, to KiwiSaver members accounts in 2017. Of this just under $0.5 million was paid to Christian KiwiSaver Scheme members. Did you get your share of this? Do you know how much you can get?

How much can I get?

The Government pays 50c for every $1 you pay in, but there is a limit. The Government’s money is credited to your KiwiSaver account. To get the maximum amount of $521.43 from the Government, you need to pay at least $1,042.86 each year. This equates to $20 a week. Here are some examples of how this works:

Your personal contributionsMoney from Government
WeeklyAnnualAnnual
Over $20Over $1,042.86$521.43 max
$20$1,042.86$521.43 max
$15$781.14$390.57
$10$521.43$260.71
$5$260.71$130.35

If you are an employee and earn $34,762 p.a. or more, and contribute the minimum 3% of your pay to KiwiSaver then you’ll qualify for the maximum without having to do anything else.

If you want to receive the maximum amount for the year ending 30 June 2018 year then you can make a top-up contribution if you wish to do so. But this needs to be done before the end of June 2018.

Who can get this free money?

The Government will make an annual payment into your KiwiSaver account as long as you:

  1. have made personal contributions to your KiwiSaver account during the year;
  2. are aged between 18 and 65*; and
  3. were resident mainly in New Zealand.

*Eligibility for the Government’s money can extend beyond 65 if you have not been in KiwiSaver for five years; in which case it ceases after five years membership.

You can make personal contributions to your KiwiSaver account by deductions from your pay, or regular payments, or lump sum payments.

Do I need to be employed?

No, you don’t have to be in paid employment to get the free Government money. You just need to meet the three conditions above. If you’re not sure about your personal situation, contact us on 0508 738 473.

How does the money get into my KiwiSaver account?

In July each year, we claim the Government money (called a ‘member tax credit’ contribution) from the Government on behalf of every Christian KiwiSaver Scheme member who is eligible. The claim is based on the amount of personal contributions paid over the 12 months ending 30 June.

Not sure about your personal situation

You are welcome to contact us to check on your situation, or you can log-in to your member section of the Christian KiwiSaver Scheme website to access your personal information.

Is it worth contributing to get this free money?

In our opinion yes.

Once this free money from the Government is in your account it is then invested on your behalf. Small amounts can add up to a lot over time – see the example in the table below:

EXAMPLE
1 yearAfter 5 yearsAfter 10 yearsAfter 20 years
Personal contributions1,042.865,214.3010,428.6020,857.20
Money from Government521.43 max2,607.155,214.3010,428.60
Total$1,464.29$7,821.45$15,642.90$31,285.80