New Zealanders have just over a week to ensure they’re eligible for the maximum annual government KiwiSaver contribution and ASB says hundreds of thousands of people look set to miss out.
Every year the New Zealand Government tops up eligible members’ accounts with 50c for every $1 they have contributed to their KiwiSaver account, up to $521.43.
ASB data shows while more than 236,000 of its members have contributed at least $1,042.86 for the year and are on track to get the full amount by 30 June, almost half of its members won’t have contributed enough.
ASB executive general manager for Private Banking, Wealth and Insurance Adam Boyd says for those that can, ensuring they maximise this benefit should be a priority for Kiwis.
“Government contributions are there to help boost members’ KiwiSaver balances and encourage them to save, but essentially it’s free money for those who are eligible. A 50 percent return is significant, and a lot of people aren’t taking advantage of this.
“Currently, ASB KiwiSaver Scheme members are tracking to miss out on around $90 million in annual government contributions for the year, and this trend is likely to be similar across other KiwiSaver providers, which means Kiwis collectively miss out on hundreds of millions of dollars from the government,” says Mr Boyd.
For a New Zealander working from age 18 to 65, government contributions could add almost $25,000 to the amount they have at retirement, without even considering the investment returns this free government money could generate.
“We know for many people, making large regular contributions can be hard, but every bit helps. We’ve reached out to our KiwiSaver members to remind them of this important benefit and would encourage all eligible New Zealanders to make the most of it.
“Even an extra $100 a year into your KiwiSaver account, less than $2 a week, could earn you a bonus $50 Government contribution, and it all adds up,” says Mr Boyd.
KiwiSaver members wanting to find out how they’re tracking towards receiving the annual government contribution should contact their KiwiSaver provider. To avoid missing out, Kiwis making last minute contributions are advised to allow at least three working days processing time ahead of the 30 June deadline.
For more information please visit: https://www.asb.co.nz/kiwisaver/annual-government-contribution.html