KiwiSaver members to get one last chance at $521 government contribution
To qualify for the full amount, members need to have contributed at least $1042 in the 12 months to 30 June.
Photo:
RNZ / REECE BAKER
The clock is ticking down on KiwiSaver members' last chance to get $521 in their accounts, from the government.
It was announced in this year's Budget that the government would halve the member tax credit to a maximum of $260.72, and remove it for anyone earning more than $180,000 a year.
That means the current KiwiSaver year, which expires at the end of Monday, is members' last opportunity to get the $521.43 that had previously been offer - and for the highest earners to get it at all.
To qualify for the full amount, members need to have contributed at least $1042 in the 12 months to 30 June.
The contribution is currently paid at a rate of 50 cents per $1 contributed up to that amount.
Anyone who is working full-time and contributing 3 percent of their income to KiwiSaver will probably have contributed enough.
But people who have been out of the workforce, or not making contributions to KiwiSaver, may need to check whether they have, and make a lump sum payment if not.
Retirement Commissioner Jane Wrightson
previously told RNZ
the change would be most keenly felt by lower-income people.
She said, for people earning less than $30,000 a year, the member tax credit was expected to add up to 15 percent or 20 percent of their total balance at 65.
With the reduction, it would be between 6 and 11 percent.
Pie Funds chief executive Ana-Marie Lockyer said even with the changes, the contribution could be expected to grow to $41,000 over the course of a 16-year-old's working life.
The contribution is not available to people aged over 65, but from the new KiwiSaver year, will be available to 16 and 17-year-olds.
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