It’s May already? With the year flying by Alex Barendregt shares how to get free money* from your KiwiSaver before the end of June.
It may come as surprise to hear that our government actually hands out free money* to everyone that contributes to KiwiSaver. This free moolah comes in the form of Member Tax credits.
So, how much can I get?
Well, that all depends how much you put into it. The government will pay fifty cents for every dollar of member contribution annually, up to a maximum payment of $521.43.
This means that you must contribute $1,042.86 annually to qualify for the maximum payment of $521.43.
For most people, this will happen automatically as they contribute a minimum three per cent of their income to KiwiSaver. This will take them over the threshold fairly easy.
However, if you have not been contributing due to a KiwiSaver holiday or youʼre self-employed or you were without a job, it could still work for you. Here’s how …
You may have heard the saying, "The best time to plant a tree was 20 years ago. The second best time is now!” In the KiwiSaver context, if you plant that metaphorical tree before the end of the KiwiSaver year (1 July to 30 June) by putting in some extra funds manually you will benefit from this government incentive this year.
So, now’s the time to get cracking. Put some money into your KiwiSaver and get it topped up with some free money from the government.
If you don’t have a KiwiSaver or have some questions around it, feel free to contact Alex for an obligation-free chat.
Fun Fact: Last year the government set aside $500 million for Member Tax Credits that were unclaimed by participants. It’s sitting there waiting for you. Go and grab it!
*Free money relates to Member Tax Credits.
Alex Barendregt is a Registered Financial Adviser with Velocity Financial. No investment decision should be taken based on the information in this blog alone. A disclosure statement is available free of charge upon request