Did you know that, every year, for each dollar you invest in KiwiSaver, the Government adds 50 cents to your account – up to a maximum of $521.43 per year?

It’s called the annual Government contribution, and every eligible contributing KiwiSaver member aged 18-64 and living in New Zealand gets it. Here’s how you can make the most of it.

Here’s how it works

The KiwiSaver annual Government contribution is calculated based on the amount you contribute between 1 July and the following 30 June, and it’s paid directly into your KiwiSaver account around July/August each year.

Let’s say, for example, that you contribute $700 during the period. For each dollar, the Government will add 50 cents, so a total of $350. If you contribute $850, you will get $425, and so on.

It’s important to note that you employer contributions don’t count towards this bonus – only your personal contributions.

Like to maximise this bonus?

To get the maximum Government contribution ($521.43), you need to put in at least $1,042.86 by 30 June. If you contribute more, you will still get the maximum of $521.43.

If you’re employed, earn at least $34,762 per annum and contribute at least 3% of your pay, you will be eligible for the full $521.43 Government contribution, subject to the other eligibility criteria. But what if you’re self-employed, unemployed or earn under that amount?

Here are a couple of options:

• If you’re employed but don’t earn enough for the maximum bonus amount, you can either increase your contribution rate or make a lump-sum voluntary payment by mid-June, to make up the difference (provided it’s suitable for your situation and objectives, of course).
• If you’re unemployed or self-employed and want to get this KiwiSaver boost, you can simply make voluntary contributions. Setting up automatic payments of $20 per week could be a great way to streamline your savings efforts and secure the maximum amount of $521.43, subject to your situation and objectives.

Consider contributing to your partner’s KiwiSaver account

If your partner is eligible for the annual Government contribution, but is not contributing enough to receive the maximum amount, you could consider contributing to their KiwiSaver account.

This can be especially beneficial for stay-at-home parents, as it can help boost your household’s retirement savings, even if one of you currently doesn’t earn an income. You can either make a voluntary contribution directly to their account or set up automatic payments.

Time to review your KiwiSaver plan?

Securing the maximum annual Government contribution is just one of key steps you can take along the way. If it’s time to review your KiwiSaver plan, get in touch: we can help you check how you’re tracking and adjust your investment strategy if needed.

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.