The trick is to make sure that we've contributed at least $1,043 into our KiwiSaver account over the past year. (If you joined part-way through or turned 18 during the year, you'll be eligible for some portion of the $521, based on when you did. Everyone else can get the full five hundy.)
If you're an employee and earned at least $34,762 and contributed the minimum of 3%, you'll automatically get it. If you're self-employed and have already put in more than $1,043, you will too. No worries.
But if you haven't yet reached $1,043 this year, now's the time. Before the end of June, you can top up your contributions to that amount so you get the government boost. Simply contact your scheme provider and make it happen. Just in time to make the deadline.
And typically by the middle of August, we'll all see that extra $521 hit our accounts. Sweet.
How to make sure you'll get it next year
If you miss this deadline and don't manage to put in the full amount, you'll still get 50 cents for every dollar you did put in. That's worth something. But let's look ahead to next year.
The KiwiSaver year runs from July to June, so this coming July is a chance to reset our finances to make sure we're on track to for next time. If we set things up right, we can easily be on the money in June 2018.
Over a year, putting in $1,043 works out to slightly more than $20 per week, which is far more manageable than having to come up with the whole amount just before the deadline.
Automatic payments directly into our KiwiSaver accounts are our best friends here, allowing us to forget all about it and let it run on autopilot. Contact your provider to make this happen.
Out of sight, out of mind. And when next year's deadline rolls around, we'll all be ready.
Get Sorted is written by Sorted's resident blogger, Tom Hartmann. Check out the guides and tools from Sorted - brought to you by the Commission for Financial Capability - at sorted.org.nz.
