Is Cost Of Living Deterring KiwiSavers From Final Big Government Contribution?

The expected last-minute surge of KiwiSaver customers rushing to top-up their accounts to qualify for the final $521 Government contribution has not eventuated.

That’s according to AMP KiwiSaver data that shows with just today remaining for customers to meet the minimum KiwiSaver contributions to receive the one-off government top-up, the percentage of uptake is actually fewer than previous years.

“The percentage of our eligible KiwiSaver customers who have paid at least $1,042 dollars into their account over the last year – qualifying them for the annual Government contribution - is just 65% currently, about 1-2% less than the previous two years,” says AMP KiwiSaver boss Jeff Ruscoe.

“Given the Government recently announced it is halving their maximum contribution next year from $521.43 to $260.72, we anticipated an increase in customers wanting to ensure they qualified for it. Despite our recent communications reminding them of the looming deadline, the expected surge simply hasn’t eventuated.”

Ruscoe says based on 35% of AMP’s eligible customers not receiving the full one-off pay out, it equates to up to $22m not entering the KiwiSaver pool.

“It’s possible in this continuing challenging economic climate that people just don’t have the spare cash to meet the required $1,042 of KiwiSaver contributions.”

To allow for processing time most KiwiSaver providers’ top-up deadlines have now passed. After this, eligible KiwiSaver members will qualify for the Government contribution if they have topped-up their account directly through IRD by June 30.

© Scoop Media