Free money goes begging

July 21, 2016

Don’t let your chance at free money go begging; top up your KiwiSaver and cash in on member tax credits.

Thousands of Kiwi’s fail to take full advantage of a government offer to top up their retirement savings, effectively leaving free money on the table.

A recent KiwiSaver report released by Inland Revenue showed that in 2012-13, $455 million in Member Tax Credit payments was made to 1,232,453 members; but less than half of those received the full $521 amount on offer.

A further 486,000 members - 27% of members aged 18 plus in the same year - failed to make any contributions to their KiwiSaver account.

In all, Kiwis let more than $300 million in free money go begging every year.


Are you missing out on free money from the government?

If you contribute $1,042 to your KiwiSaver account between 1 July and 30 June each year, the Government rewards you* by paying another $521 into your account – that’s 50 cents extra for every dollar you put in.

It's called a member tax credit. If you haven’t been making the most of this Government contribution then you should – there really is free money on offer.

The most you can get under the member tax credit arrangement is a $521 Government contribution to boost your own contributions of $1,042 or more. Even if you’re not in a position to make the maximum contribution you will still get 50 cents for every $1 you contribute so it’s well worth contributing what you can.

It's easy. You don’t have to apply for the member tax credit – simply contribute to your Mercer KiwiSaver scheme and Inland Revenue will automatically calculate the amount you should receive. Member tax credits are paid into eligible members' KiwiSaver accounts each year in July or August.


Don’t miss out

Unfortunately many members don't top up their KiwiSaver accounts. Some forget, others don't realise they are not contributing because they've changed jobs or life has gotten in the way somehow.

The end of financial year is fast approaching so now is a great time to check how your contributions are tracking. You can check how much you have contributed so far at, logging in to your personal account, or calling us on 0508 637 237 to discuss your contribution strategy.

*Eligibility criteria apply. Find out more.


How to top up

You can pay straight into your KiwiSaver account. Simply find Mercer KiwiSaver scheme on your online banking and follow the instructions.

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