Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

KiwiSaver members miss out on $400 million of “free money”

Media Release
For Release: 15 September 2014

KiwiSaver members miss out on $400 million of “free money”

ANZ Investments is suggesting KiwiSaver members set up direct debits to their KiwiSaver funds after estimating thousands of members missed out on around $400 million of Member Tax Credits from the Government in the last year.

Each year, the Government will provide up to $521 as a Member Tax Credit to every KiwiSaver member who contributes a minimum $1042 in the year to June 30.

ANZ Wealth New Zealand managing director John Body said it was great to see more people taking advantage of this benefit but many people were still missing out because they did not contribute enough during the year.

“Our analysis indicates that 56% of possible Member Tax Credits were paid out in the 2014 financial year, up from an estimated 50% in the prior year.

“Based on this, KiwiSaver members nationally missed out on an estimated $400 million that could have been claimed if they had contributed the minimum amount,” said Mr Body.

“It’s great to see more KiwiSaver members making the most of this benefit, but there’s still a fair way to go before everyone gets what they’re entitled to.

“This year, ANZ Investments contacted our KiwiSaver members to remind them of the benefit. We found that many people didn’t know they were entitled to this and were keen to contribute more in a lump sum in order to claim the benefit.

“In total, members of our three KiwiSaver schemes made $24 million of additional voluntary contributions following our campaign between May and July. This meant that our members received $33 million more in Member Tax Credits this year.

“Members actually called to thank us for reminding them – in a number of cases, they had taken a contributions holiday but moved to top up their contributions for the year so they received the benefit.”

Mr Body advised KiwiSaver members to set up a direct debit to ensure they contributed enough to qualify for the Member Tax Credits next year: “We suggest members call their KiwiSaver provider and consider setting up a direct debit.

“It’s a lot easier for people to contribute $20 a week than find $1000 at short notice. In return, you get 50 cents for every $1 you contribute up to $1042 which is going to help you reach your retirement savings goal sooner.”


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: Body massages and Uber are in, DVDs are out, says Stats NZ

Statistics New Zealand has rejigged the consumers price index basket in its latest three-year review, adding body massages, Airbnb and Uber and removing DVD and Blu-Ray players…More>>

ALSO:


StuffMe: Commerce Commission Welcomes Dismissal Of Merger Appeal

In a summary of their judgment released today, Justice Dobson and lay member Professor Martin Richardson dismissed the appellants’ process criticisms and found the Commission was entitled to place significant weight on the prospect of reduced quality of the products produced by the merged entity. More>>

ALSO:

Digital Futures: New Chief Technology Officer Role Created

Communications Minister Clare Curran has called for expressions of interest for the new role of Chief Technology Officer position to help drive a forward-looking digital agenda for New Zealand. More>>

Real Estate: NZ house sales slump in December but prices still firm

The number of property sales across New Zealand slumped 10 percent in December from a year earlier but prices continued to lift, according to the Real Estate Institute. More >>

ALSO:


Dry: Beef + Lamb Launches Drought Resources

The resources include a fact sheet outlining strategies to manage and mitigate the effects of drought, coping with stress on the farm and advice on feed requirements and animal welfare during the dry period. More>>

ALSO:

InternetNZ: Net Neutrality Failure In US "Will Hurt All Users"

InternetNZ Chief Executive Jordan Carter has condemned the decision by the United States communications regulator to undo 2015 open Internet rules, warning that all Internet users will end up worse off as a result. More>>

ALSO: