Each year, the government will contribute 50 cents for every dollar you save in your KiwiSaver, with the maximum contribution being $521. To get the full amount of $521 you need to have contributed $1,043 in the twelve months prior to the cut-off date of mid June.
Even if you haven’t contributed the minimum of $1,043 up to this point, you can add a lump sum prior to the cut-off date to take you over the threshold – this will give you the full contribution of $521.
It may not seem like much, but it’s what being a ‘kiwi’ who is saving is all about! For example a 24 year old in KiwiSaver, who is over the threshold of $1,043 yearly (and therefore receiving the full $521 contribution), could end up with as much as $50,000 more in their retirement fund, when they reach 65.
Be the optimal ‘kiwi’ saver by giving us a call. We’ll help you to save smart – easily and relatively painlessly.