Did you know that if you put money into your KiwiSaver that the Government will give you additional KiwiSaver money absolutely free?

If you have put at least $1042.86 of your own money into your KiwiSaver this year, you will receive the maximum of $521.43 of Government contribution – the free money the Government will pay into your KiwiSaver.

Do you feel like you haven’t put enough money into your KiwiSaver to receive that maximum Government contribution? Don’t worry! You will still get some Government contribution as long as you have put some money into your KiwiSaver within the year (which is measured from 1 July 2020).

What do you need to do?

The Government pays 50c for every $1 you pay into your KiwiSaver up to the maximum (see below). If you’re reading this and you are trying to figure out how much free KiwiSaver money you will get from the Government, here are some examples of what that might look like for you:

If you are an employee and earn at least $34,762 a year, and your KiwiSaver contribution rate is at least the minimum 3%, then you will qualify for the maximum Government contribution without even having to do anything else.

If it looks like your personal contributions will not get you the maximum Government contribution, you still have until the 30th June 2021 to put more money into your KiwiSaver.

Not sure about your personal situation?

Here at Christian KiwiSaver Scheme we want you to feel supported as you think about your financial wellbeing. You can log on to your member section of our website to access your personal information and see how much you have contributed for the year if you are not sure. Please contact us if you have any questions.

Every year the Government makes contributions to the accounts of eligible KiwiSaver members, up to $521.43 each. These contributions are usually credited to members’ accounts in early July. In 2020 the Government paid $777.8 million in contributions to KiwiSaver members. Did you get your share of that? Make sure you receive your $521.43 this year by contributing enough before 30 June 2020.

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 just over $20 a week. Here are some examples of how this works:

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 2019 year then you can make a top-up contribution. This needs to be done before the end of June 2020.

Who can get this free Government money?

The Government will make an annual payment (Government Contributions) 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 5 years; in which case it ceases after 5 years membership.

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

Not sure about your personal situation

You are welcome to contact us to check on your situation, or you can log on to your member section of the Christian KiwiSaver Scheme website. We have created a dedicated tab for members to keep an eye on how you are tracking towards being eligible for the Government Contribution.

 

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:

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: