This year over a million New Zealanders missed out on all or part of a $521 Government contribution to their KiwiSaver account.
Called a member tax credit, this bonus money can be claimed every year.
According to Mercer’s financial adviser Glenys Wilson, member tax credits go unclaimed because many people don’t know how they work.
“To get the full amount of $521, members need to save a minimum of $1,042 annually. However, contributing smaller amounts still works because the Government puts in 50 cents for every dollar you do,” she says.
If you’re on a low income, self-employed or on a contribution holiday, it’s a good idea to take some steps now to make sure you get at least some of your member tax credit in 2018, or even better, all of it.
To help more eligible KiwiSaver customers receive their member tax credits, Mercer is challenging customers to contribute $20 per month to their KiwiSaver accounts. A monthly $20 contribution adds up to $240 per year – and a $120 member tax credit that might have been missed out on otherwise.
Take the $20 member tax credit challenge
1. Set up an automatic payment.
Scheduling a regular automatic payment from your bank account to your KiwiSaver account is one of the most effective things you can do to achieve your savings goal.
Just search for Mercer KiwiSaver scheme as a payee and follow your bank’s instructions to complete the process.
2. Break your plan into manageable steps
Small amounts can quickly add up so get creative on the different ways you could make your $20 savings target every month.
-Make a pact with yourself to contribute half of any bonus or unexpected money you get (like birthday money).
-Think of things you wouldn’t miss much and try going without e.g. save on parking by taking public transport every so often, buy less “treats” in the weekly shopping.
3. Reward yourself along the way
Take some time to feel good about your progress – catch up with friends, go for a walk or do something you love. Just don’t go spending a lot of money to celebrate!
4. Keep track of your progress
Nothing is more motivating than seeing your progress. Sign-in to your online account every month and check your balance. It will also give you a chance to correct course if you haven’t been sticking to your plan.
Remember, every dollar you add to your KiwiSaver account makes a difference.
The information contained on this page is intended for general guidance only and is not personalised to you. It does not take into account your particular financial situation or goals. Before making any investment decision, you should refer to the product disclosure statement or consult an appropriately authorised adviser.