You have a free $500 waiting – claim it now
You will have to hurry – you have only till the end of June to make the claim. And its easier than you think!
Every KiwiSaver member who contributes is entitled to receive up to $521 a year from the Government. The way it works is pretty straightforward.
How it works
For every $1 you contribute, the Government will top up your KiwiSaver account with 50 cents. For example, if you contribute $500 in a year, the Government will automatically top up your account with $250. If you contribute $1,000, the Government will top up your account with $500. Think about it this way. That’s effectively a 50% return on your investment! Pretty good deal, right?
The maximum the Government will top up your account with is limited to $521.43 each year. So, in order for you to claim the entire $521.43 you just need to ensure you contribute $1,042.86 each year. This windfall is not a one-off either. You can claim this amount every year based on the contributions you make between 1 July to 30 June of the following year.
Who can claim this?
Mind you, this $500 is entirely free and yours to keep. There is only a minimum criteria to be eligible for this. You need to be a KiwiSaver member and be between the ages of 18 and 65. You don’t even need to be contributing regularly or be working or have an income. It’s as simple as that – whatever your status, you just need to ensure that you have contributed at least $1042.86 in any given year and you will enjoy an automatic top up into your account.
It’s estimated that each year about a million eligible Kiwis leave about $300-$400 million of such top ups unclaimed. That’s a whopping lot of money on the table! Why be part of that statistic?
How to claim your $500
Claiming this amount is super simple. If you earn about $35,000 a year and contribute the minimum 3% then you will automatically receive your entire top up amount. You don’t need to do anything! Easy.
If you are unsure, check with your Provider how much you have contributed this year. If you haven’t contributed at least $1,042.86 since 1 July 2017 then all you need to do is make what is called a ‘voluntary’ contribution to bring your annual contribution amount up to $1,042.86.
Perhaps you have been on a holiday contribution or you are self-employed and don’t do regular contributions. That shouldn’t stop you from making a lump sum contribution at any time. Simply make a transfer from your bank account into your KiwiSaver account. That’s it! The rest will be taken care of for you.
Or, you you can make the payment through the IRD in two ways:
Internet banking
Choose the “Pay tax” option on your internet banking service. You need to include your IRD number, the tax type “KSS”, and period “0” (zero).
By cheque
Send payments to the address below along with your IRD number and clearly indicate it is for KiwiSaver –
Inland Revenue
PO Box 39050
Wellington Mail Centre
Lower Hutt 5045
So what are you waiting for? You can make a voluntary contribution right up until the end of June, which is almost here!
Honestly….this will be the easiest $500 you will ever make.
If you’re not sure about whether your current KiwiSaver fund is right for you, our comparison tool might be a nice and easy way to figure out some Funds that could suit you.
