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KiwiSaver members make sure you get your free $521 this year

It is that time of the year again - we want you to make sure you are making the most of your KiwiSaver and the power of compound interest.

KiwiSaver members are eligible for a Member Tax Credit (MTC). For every dollar you put into your KiwiSaver account, the Government puts in 50c, up to a maximum of $521.43 each year - this is effectively free money for KiwiSaver members. 

In the FY ending June 2017, about 1.1 million people either received less than the maximum government contribution or nothing at all. It was estimated at least $300m in member tax credits was not being claimed.

From an investment perspective, the MTC is possibly the best return you are ever going to get. But it gets paid once a year. If you miss the deadline, you can't go back and claim it later.

If you have been contributing to KiwiSaver for at least one year through your employer at the 3% rate and you earn over $34,766 per annum, your contributions will meet the minimum requirement to qualify for the full tax credit.The money is paid into your KiwiSaver account in late July or August.

Not quite sure if you have contributed enough? Use our handy calculator.

If you haven't contributed enough, you can still top up your account to make sure you don't miss out. You have until the end of June to make a voluntary contribution. Talk to your KiwiSaver provider, they will let you know how to put some extra money into your fund. The power of compound interest means that an extra $521 could make a huge difference by the time you retire.



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