ANZ is running a campaign to remind KiwiSaver members to contribute enough to get their $521 free from the Government.
The campaign will run for two months.
The Government provides $521 as a member tax credit each year to KiwiSaver members who contribute at least $1042 to their accounts in the year ended June 30.
ANZ Wealth managing director John Body said it was a great benefit but too many KiwiSaver members were missing out because they had not contributed enough money during the year to qualify.
“Our analysis indicates that 56% of possible member tax credits were paid out last year which was up on the 50% paid in the prior year. It’s great to see more members taking advantage of this benefit but we estimate that last year KiwiSaver members nationally missed out on an estimated $400 million that could have been claimed if they had contributed the minimum amount.”
Body said ANZ Investments was contacting KiwiSaver members who had not contributed enough to qualify to remind them of the benefit: “We want to ensure our members make the most of Kiwisaver so they save enough for a comfortable retirement. Members still have a couple of months until June 30 to top up their contributions to make sure they get their full entitlement. Given the Government will give you 50 cents for every dollar you contribute up to $521, it makes a lot of sense to ensure you have contributed enough to qualify. In the past, we have found that members didn’t know about the benefit and were keen to contribute more in a lump sum so they would qualify for the full amount.”
Longer term, Body advised KiwiSaver members to set up a direct debit if they want to be sure they qualify automatically for their full member tax credit benefit next year: “It’s a lot easier to put in just over $20 a week than it is to find $1042 at short notice.”