Many missing out on KiwiSaver credit

Many missing out on KiwiSaver credit

A majority of KiwiSaver investors are missing out on 'free money'.

The 'free money' is a payment by the Government into members' accounts each year. The payment is known as the Member Tax Credit.

To receive it you must contribute up to $1042.86 between July 1 and June 30. You will then receive a payment into your account from the government, up to a maximum of $521.43.

If you do not contribute the full $1042 you will still receive 50 cents for each dollar you put into your KiwiSaver account.

The Commission for Financial Capability says last year 573,000 people did not make any contribution to their account and therefore did not receive the credit.

Another 593,000 received some of the tax credit, but not the full amount.

People aged under 18 do not receive the tax credit.

It ceases once you reach retirement age (either when you turn 65 or once you have been in KiwiSaver for five years, whichever happens last).

To receive the credit, the $521.43 must be from yourself, and not the contributions from your employer.