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RNZ News
a day ago
- Business
- RNZ News
KiwiSaver members to get one last chance at $521 government contribution
To qualify for the full amount, members need to have contributed at least $1042 in the 12 months to 30 June. Photo: RNZ / REECE BAKER The clock is ticking down on KiwiSaver members' last chance to get $521 in their accounts, from the government. It was announced in this year's Budget that the government would halve the member tax credit to a maximum of $260.72, and remove it for anyone earning more than $180,000 a year. That means the current KiwiSaver year, which expires at the end of Monday, is members' last opportunity to get the $521.43 that had previously been offer - and for the highest earners to get it at all. To qualify for the full amount, members need to have contributed at least $1042 in the 12 months to 30 June. The contribution is currently paid at a rate of 50 cents per $1 contributed up to that amount. Anyone who is working full-time and contributing 3 percent of their income to KiwiSaver will probably have contributed enough. But people who have been out of the workforce, or not making contributions to KiwiSaver, may need to check whether they have, and make a lump sum payment if not. Retirement Commissioner Jane Wrightson previously told RNZ the change would be most keenly felt by lower-income people. She said, for people earning less than $30,000 a year, the member tax credit was expected to add up to 15 percent or 20 percent of their total balance at 65. With the reduction, it would be between 6 and 11 percent. Pie Funds chief executive Ana-Marie Lockyer said even with the changes, the contribution could be expected to grow to $41,000 over the course of a 16-year-old's working life. The contribution is not available to people aged over 65, but from the new KiwiSaver year, will be available to 16 and 17-year-olds. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
23-05-2025
- Business
- RNZ News
People leaving relationships being kept out of the property market, financial coach says
People who've withdrawn their KiwiSaver to buy a house can't do so again after they've left a relationship. Photo: 123RF When Violet* accessed her KiwiSaver to buy a house more than a decade ago, she only had about $3000 available. She withdrew the money and received a First Home Grant to help with the purchase. But six years later she and her partner separated and sold the house. *Violet, whom RNZ has agreed not to identify, is now on her own and has built up $50,000 in her KiwiSaver. She would love to be able to buy a house for herself and her children, and $50,000 would be enough for a deposit on the type of property she would like to buy in Manawatū. But she has been told she cannot access her KiwiSaver again because she has already withdrawn money for a home. "There's no other option for me to be able to tap into that. I only used $3000 because that's all I had in KiwiSaver at the time. Now I can't access the $50,000 I've got in there now." While there is an option for "second chance" buyers to withdraw money from KiwiSaver for a second home, that only applies to people who have not used their KiwiSaver previously. They need to now be in the same financial position as a first-home buyer. Pie Funds chief executive Ana-Marie Lockyer said the criteria was fairly strict. People also needed to not have assets worth more than 20 percent of the house price cap in the area they were looking at, and needed not to have any other property ownership, even if it was only land. "It's understandable this person is frustrated, as the rules don't seem to cater for people in her position." Financial coach Shula Newland said it would take Violet many years to save a deposit for a house outside KiwiSaver, so she was effectively locked out of the market. "I really think the government needs to review the rules around being able to get money out again. "This will also help with separations, as they - mostly women - could park their money in KiwiSaver till they are ready to buy another home." She said it was a common situation at the moment because the recent drop in house prices meant many people did not have enough money left for another deposit when they sold their homes in a separation. She said women were also more likely to spend any payout on living and taking care of children after a separation, so if there was a way to keep it in KiwiSaver and withdraw it later, it could put them in a better position. In April, 3970 people withdrew savings from KiwiSaver for a first home, for a total of $167.3 million. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
