Saving just a small amount every week into a KiwiSaver account can make a big difference to your retirement – especially when it comes to getting the full government contribution each year.
The cost of living is a daily worry for most of us and it can be tempting to put saving for your retirement on the backburner.
But with the end of the KiwiSaver financial year just around the corner, it’s actually the perfect time to check on your nest egg.
“One of the really big perks of being in KiwiSaver is the government contribution. As long as you’re eligible, for every $1 you invest the government will contribute 50c, up to the value of about $521,” says Laura O’Reilly, Fisher Funds Wealth Adviser Lead.
Making the most of the benefits
A study released in 2023 showed about a million Kiwis were missing out on some or all of the government’s top-up, either because they didn’t have a KiwiSaver account, or they weren’t investing enough.
“Everyone who’s eligible has until the end of June to make sure they’ve invested $1,043 in order to get the full government contribution,” says O’Reilly. “Ensuring you receive the maximum amount each year can make a big difference to your balance at retirement.
“While $521 may seem a modest amount, every little bit helps and it can make a huge impact long-term, because those returns will compound over time.
“For example, a 25-year-old who receives the full $521.43 each year until age 65 would have an additional $20,857 invested into their KiwiSaver account. And even better, that money has the potential to grow over time while it is invested in their KiwiSaver account.
“If you can’t spare the full $1,043 over the year, perhaps because you’re not working or you’re only working part time, then remember even smaller amounts can make a difference. Even if you invest $500 into your KiwiSaver account over the year, the government is still going to match you 50c on the dollar and top you up by $250. That’s an immediate 50% boost, which is something not to pass up.”
Who’s eligible for the government contribution
The government top-up is available to KiwiSaver members between 18 and 65 and living primarily in New Zealand.
“As long as you’re putting something in, the government will too. Just log into your KiwiSaver account or MyIR to find out how much you’ve saved this year and what you’re on track to receive”.
Join over 500,000 ambitious Kiwis with Fisher Funds, New Zealand’s most trusted KiwiSaver provider*. Just visit www.fisherfunds.co.nz/kiwisaver
Fisher Funds Management Limited is the issuer of the Fisher Funds KiwiSaver Scheme and Fisher Funds TWO KiwiSaver Scheme. Fisher Funds Wealth Limited is the issuer and manager of the Fisher Funds KiwiSaver Plan. Product Disclosure Statements for the schemes are available on our website.
*Reader’s Digest Most Trusted Brand for KiwiSaver (as voted by New Zealanders) 2021, 2022, 2023
This content was sponsored by Fisher Funds.