If you are in KiwiSaver now is a good time to check you received $521 of "free money" from the Government.
It is what is known as the KiwiSaver Member Tax Credit.
If you are aged between 18 and 65 and you contributed $1042.86 between July 1st of last year and June 30 this year you will receive an additional $521.43 from the Government.
The Government matches you 50 cents for each dollar you put in up to $1,042.86.
It pays to check the payment has been correctly processed. The payment should go into your account by late August.
If you did not make the payment last time there is still time to take advantage of the Member Tax Credit. It is an annual payment.
As well as the Member Tax Credit there is more "free money" on offer. Anyone who is a salaried employee will receive a matching contribution from their employer each year, up to three percent of their salary.
Now is also a good time to check you are in the right fund for your age and your risk appetite.
Growth funds have the highest exposure to shares. They are generally considered the best place for younger people to invest their KiwiSaver money.
Balanced and Conservative funds have a higher exposure to fixed-interest investments. They are less volatile than Growth funds, but over time will not deliver the same returns as the Growth funds.
Generally the younger you are the more you should be in a growth fund with a higher exposure to shares. As you get older you can then consider switching your money to a Balanced or Conservative fund.