Each year, KiwiSaver members have the opportunity to receive a government top up of up to $521.43. Last year the Government made contributions of $847 million[1] towards KiwiSaver members’ retirement savings. However, this represented only 60% of members making the most of the benefit available.
Don’t miss out on your Government Contribution to help boost your KiwiSaver investment. Every dollar counts! It is worth encouraging your friends and family to do the same, saving more now will lead to a better retirement outcome in the future.
So how do you get it?
To be eligible, you must be:
- Aged 18 years or older and not yet eligible for retirement withdrawals[2], and
- Live mainly in New Zealand[3]
You should receive the full Government Contribution if you’ve been in KiwiSaver for the full year (1 July to 30 June) and have contributed at least $1042.86. If you have contributed less than $1042.86 the Government will still match what you have contributed with 50 cents for every dollar you’ve contributed. If you haven’t been a KiwiSaver member for the full year you could still get a proportional top up from the government.
Please note, the Government Contribution only applies to your own contributions i.e. employee contributions and any voluntary contributions you have made. It does not apply to your employer’s contributions.
Check to see if you have contributed enough
Log into your Milford Client Portal and use our Government Contributions Calculator.
Alternatively, you can check by logging into your MyIR account at www.ird.govt.nz/kiwisaver. Go to “View transactions” and filter on transaction type “Deductions from salary/wages” and the date range from 01/07/2020 to 30/06/2021 to see if you’ve contributed at least $1042.86
How to top up:
Make a payment or set up a Direct Debit – login to your client portal, then navigate through Payments & Transactions to make a payment.
You may also want to consider increasing your employee contribution rate to ensure you’ve made sufficient contributions for future years.
When will I receive the Government Contribution?
We’ll claim any Government Contribution on your behalf, and you can expect payment into your KiwiSaver account around late July. If you have contributed enough, you don’t have to do anything else. If your contributions are less than $1042.86 consider topping up your account.
It’s worth taking a few minutes now to check if you’ve contributed enough. Don’t be like some of the thousands of members who missed out on their full top up last year.
[1] – IRD KiwiSaver Statistics (https://www.ird.govt.nz/about-us/tax-statistics/kiwisaver)
[2] – If you joined KiwiSaver before 1 July 2019 and were aged between 60 and 64 inclusive and haven’t yet made a retirement withdrawal, you will also be eligible. If you are unsure, please contact us on [email protected] or 0800 662 346
[3] – There are exceptions for government employees who are serving outside New Zealand or persons working overseas as volunteers.