New Zealanders have just over a week to ensure they’re eligible for the maximum annual government KiwiSaver contribution
and ASB says hundreds of thousands of people look set to miss out.Every year the New Zealand Government tops up eligible members’ accounts with 50c for every $1 they have contributed to
their KiwiSaver account, up to $521.43.ASB data shows while more than 236,000 of its members have contributed at least $1,042.86 for the year and are on track
to get the full amount by 30 June, almost half of its members won’t have contributed enough.ASB executive general manager for Private Banking, Wealth and Insurance Adam Boyd says for those that can, ensuring they
maximise this benefit should be a priority for Kiwis.“Government contributions are there to help boost members’ KiwiSaver balances and encourage them to save, but
essentially it’s free money for those who are eligible. A 50 percent return is significant, and a lot of people aren’t
taking advantage of this.“Currently, ASB KiwiSaver Scheme members are tracking to miss out on around $90 million in annual government
contributions for the year, and this trend is likely to be similar across other KiwiSaver providers, which means Kiwis
collectively miss out on hundreds of millions of dollars from the government,” says Mr Boyd.For a New Zealander working from age 18 to 65, government contributions could add almost $25,000 to the amount they have
at retirement, without even considering the investment returns this free government money could generate.“We know for many people, making large regular contributions can be hard, but every bit helps. We’ve reached out to our
KiwiSaver members to remind them of this important benefit and would encourage all eligible New Zealanders to make the
most of it.“Even an extra $100 a year into your KiwiSaver account, less than $2 a week, could earn you a bonus $50 Government
contribution, and it all adds up,” says Mr Boyd.
KiwiSaver members wanting to find out how they’re tracking towards receiving the annual government contribution should
contact their KiwiSaver provider. To avoid missing out, Kiwis making last minute contributions are advised to allow at
least three working days processing time ahead of the 30 June deadline.
Helping you get one step ahead.
In 1847, ASB opened as the Auckland Savings Bank with the pledge: 'to serve the community; to grow and to help Kiwis
grow'. And that is very much what ASB is about today.
ASB is a leading provider of integrated financial services in New Zealand including retail, business and rural banking,
funds management and insurance.
ASB strives to consistently provide its customers with outstanding service and innovative financial solutions. They're
dedicated to providing simple financial products that allow their customers to bank with them how and when they want.
We all have our own ways to measure progress, and our own stories about the things that matter to us. Whatever way you
choose to measure progress, and whatever your goals, ASB is there to help you get one step ahead.