KiwiSaver: Tax Credit Calculator
Are you getting your $521?
Why it matters more than you think
It can be easy to think that missing out on a few hundred dollars doesn't make a difference in the long term. However, the power of compound interest shows us otherwise.
Compound interest is interest which goes on to earn more interest. For example, if you have an investment balance of $10,000 and your net return in one year is 5%, you earn $500, which is added to your total balance. In year two, you will earn interest on $10,500, which at 5% is $525 and so on. Using this example, by year 10 your investment is worth $16,288 with $6,288 resulting from interest.
By ensuring that you take advantage of the Government Contribution (formerly called member tax credit), you can benefit from the power of compound interest on your savings which will add up significantly over the life of your KiwiSaver whether you have five or twenty five years until retirement.
- Be over 18 years of age but under 65;
- Have contributed at least $1,042.86 ($20 per week) to your KiwiSaver account between the 1st of July and the 30th of June. Note: this amount cannot be inclusive of employer contributions or any government contributions;
- Mainly resided in New Zealand with few exceptions