ANZ Investments has launched a campaign reminding KiwiSaver members of the $521 “free money” available from the government, should they contribute enough to their KiwiSaver accounts.
The government will contribute 50c for every $1 contributed by an eligible KiwiSaver member in the twelve months to June 30 (up to a maximum government contribution of $521.43 a member). This payment is known as the Member Tax Credit (MTC).
According to ANZ managing director wealth Craig Mulholland, the data shows that more than half of ANZ’s 600,000 eligible members have already contributed enough to claim the full MTC.
“But, unfortunately, many other members look like they’ll be missing out this year,” he said.
ANZ said there were 18.5% of eligible members who had not contributed anything to their account, and 27.5% were on track to receive a partial payment.
“As New Zealand’s largest KiwiSaver provider we believe our KiwiSaver members (around 730,000), are a good representation of New Zealand’s two and a-half million KiwiSaver members,” Mulholland said. “In the past we have found there are members who simply did not know they were eligible for the MTC or who thought they needed to contribute the full amount to get something back.”
ANZ said it is contacting eligible members who have not yet contributed enough to receive the full MTC to tell them how much more they need to contribute to receive the full $521 payment. Members who have made no contribution since the start of July 2017 will receive a reminder, and information about the benefits of contributing to KiwiSaver.
ANZ also wants to encourage members to think about their longer-term contributions.
“It’s a lot easier to contribute $20 a week than to find more than $1,000 at short notice,” Mulholland added. “Setting up a regular payment is a great idea, especially if you’re self-employed or not currently working.”
KiwiSaver members are eligible for the MTC if they are aged between 18 and 65 (or older if they have been a member of a KiwiSaver scheme for fewer than five years), and mainly live in New Zealand.
Home loan provider slashes interest rates for self-employed borrowers
ANZ rolls out new interest-free home insulation loans