Saving for retirement may not be the most exciting topic, but we’ve got some great news that will help maximise your efforts in the long run. It’s basically the closest thing you’ll ever get to free money –the KiwiSaver government contribution.
Whether it’s your first go-round, or your 16th, we can really help you make the most of this generous offer. Don’t miss out on claiming your share of the closest thing to free money that there is – you just have to be eligible, and meet the June 30th deadline!
KiwiSaver and the government contribution
Let’s start with the basics. KiwiSaver is a voluntary savings initiative designed to help New Zealanders save for retirement. Anyone can participate in the scheme (so long as they meet the eligibility requirements), but as a sole trader, you’re entirely responsible for enrolling and participating in KiwiSaver –and reaping the benefits.
Now, let’s get down to business—the government contribution. Basically, it’s a program where if you’re eligible, the government will contribute up to $521.43 to your KiwiSaver fund each year, helping your retirement savings grow faster.
Who’s Eligible for the government contribution?
You’re probably wondering if you qualify for this free boost to your savings. Well, if you:
- are a KiwiSaver member,
- are between the ages of 18 and 65,
- live mainly in Aotearoa
- and have contributed at least $1,042.86 to your KiwiSaver fund between July 1st of last year, to June 30th of this year,
then you’re eligible for the full government contribution!
Maximising your government contribution:
Remember, the best way to make the most of the government contribution is to contribute regularly. Even small contributions can add up over time, so aim to make regular deposits.
How the government contribution works:
Let’s dig into the details of how the government contribution actually works. For every dollar you contribute between July 1st and June 30th, the government matches it with 50 cents, up to a maximum of $521.43. So, if you contribute at least $1,042.86 during the year, the government will add the full $521.43 to your KiwiSaver account.
Claiming your government contribution:
Claiming your government contribution is super easy and straightforward. Just make sure you’ve contributed at least $1,042.86 to your KiwiSaver fund between 1st July-30th June each year. Your KiwiSaver provider will then apply for the government contribution on your behalf. No complex forms or tedious paperwork—easy as!
📖 For more info on KiwiSaver for sole traders, check out our full guide to KiwiSaver.
Hnry makes KiwiSaver easy
Now that you’re armed with the knowledge of the KiwiSaver government contribution, it’s time to take action. Don’t let this opportunity slip through your fingers.
You can set up an automatic allocation in the Hnry app and send a percentage of every pay to your KiwiSaver fund. It’s saving for retirement made automatic!
Remember, the June 30th deadline is quickly approaching. Make the most of the government’s generosity and set yourself up for a financially secure future.
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