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KiwiSaver: Last chance to claim full $521 Govt contribution
KiwiSaver members have just weeks left to claim the full $521 Government contribution before it is halved under changes to the system announced at last month's Budget.
If people contribute at least $1042.86 into their KiwiSaver accounts in the year to June 30, they can receive the maximum contribution of $521.43 from the Government.
Those who contribute less still receive 50 cents from the government for every dollar they put in.
However, as part of Budget 2025, Finance Minister Nicola Willis announced that the value of the government's $521.43 contribution to KiwiSaver was being halved from July 1.
Individuals would now receive a maximum contribution of 25 cents per dollar of employee contribution, up to a maximum of $260.72 a year.
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Eligibility for this would also be limited to those who earn under $180,000 a year.
Each year, thousands of people miss out on what is essentially free money, as they are not working, on a contributions holiday or are self-employed and aren't contributing enough.
In 2024, about two-thirds of KiwiSaver members received the government contribution, and most of them, 77%, got the full $521.43.
The contributions cost the government about $1 billion last year.
Providers urge savers to act now
ANZ investments managing director Fiona Mackenzie said last year, around 61% of members received the full government contribution and a further 16% a partial contribution, around $200 million to the scheme's members.
"Contributions from our members are on track to be similar this year. We are really encouraged by this, considering the current economic conditions."
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She said ANZ offered a digital tool that helps customers track their progress toward the government top-up.
"They'll get an estimate of how much they are on track to get, and an indication of how much more they need to contribute to ensure they get the full government contribution."
$521.42 is up for grabs for the last time to anyone who contributes at least $1042.83 into their KiwiSaver scheme in the year to June 30. (Source:
There's still time for those who haven't yet hit the $1042.86 threshold.
ASB said it was proactively contacting customers not on track to receive the maximum contribution, particularly those who missed out last year.
Executive general manager personal banking Adam Boyd said 73% of its eligible KiwiSaver members had contributed enough to receive a full or partial contribution.
"Because this is the last year to receive the $521.43 from the government, we'd encourage New Zealanders to keep track of their contribution status and make sure they have contributed enough before the end of June to ensure they get the full amount, and the earlier the better," he said.
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"Every little bit counts and can make a big difference over time."
BT Funds Management chief executive Nigel Jackson, who oversees the Westpac KiwiSaver Scheme, said members could make a one-off voluntary contribution to get them over the line.
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"People who are in a financial position to top up their KiwiSaver contributions to $1042.86 for the year should do so, to maximise their retirement savings for the year."
Over the last two years, 44% of eligible Westpac KiwiSaver members missed out on the maximum top-up because they hadn't contributed the required $1042.86, Jackson said.
"There may be a variety of reasons why people haven't contributed up to the threshold, for example, some members may be on parental leave, some may be working part time, or others may have temporarily suspended contributions.
"However, if people can afford to top up their contributions, they should do so, as every dollar contributed up to the threshold has an immediate investment return of 50%."
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Fisher Funds general manager of KiwiSaver David Boyle told Breakfast last month that June 2025 will be the last chance to get the full $521.43 contribution.
"If you have $1042.83 and you haven't put it in, get that 50 cents from the dollar from the government," he said.
"If you can't get the full amount — because it's a lot of money — you can still put in $100 or $500. For every dollar, the government will give you 50 cents."
What else is new with KiwiSaver?
The Finance Minister also revealed some other changes to the KiwiSaver scheme during Budget 2025.
Default employer and employee contribution rates will increase to 4% from April 2028. But rates will first rise to 3.5% from April next year in a "phased" approach.
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Some KiwiSaver benefits, such as employer and government contributions, will also now be extended to 16- and 17-year-olds.
In growth forecasts, Treasury has assumed the higher 4% contribution rate could be offset by employers through lower-than-otherwise wage increases.
The Government's changes are expected to save it $2.4 billion over four years or about $600 million annually on average. Extending eligibility to 16- and 17-year-olds is forecast to cost $29 million over four years or about $7 million a year.
Most changes will be made automatically for KiwiSaver members.
