KiwiSaver members have until the end of June to get the $521 top-up from the Government before the maximum subsidy is reduced, with new data showing many have been missing out.
Over recent years large numbers of New Zealanders have missed the opportunity to receive the maximum Government top-up. For example, over the last two years 44% of eligible Westpac KiwiSaver members didn't receive the maximum top-up, because they hadn't contributed the required $1,042.86.
The Government announced in Budget 2025 that it would reduce its contribution and increase minimum contributions for workers and employers, as well as extending Government and employer matching contributions to 16 and 17-year-olds.
Eligibility remains the same for this year though, so for every $1 a member has paid into KiwiSaver up to $1,042.86 over the past year to 30 June, the government will match it by 50c - creating a $521.43 "bonus payment".*
Nigel Jackson, Westpac KiwiSaver Scheme provider BT Funds Management (NZ) Limited's Chief Executive, says members who haven't yet reached the threshold can still make a voluntary lump sum contribution into their KiwiSaver to make sure they receive the full $521.43.
"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," Mr Jackson says.
"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%."
He says increasing the default minimum KiwiSaver contributions will be good for savers and the economy in the long term.
"The Retirement Commission estimates the changes will increase retirement saving for around 80% of contributing KiwiSaver members, which is a good thing."
"While we know cost of living pressures mean many New Zealanders are currently finding it hard to focus on saving for retirement, every dollar they can put in now is an investment in their future financial wellbeing," he says.
Recent Westpac customer research highlighted that saving enough for retirement is something Kiwis are worried about, with more than 60% saying they don't think Kiwis are saving enough.
Of those surveyed, 70% also felt KiwiSaver should be compulsory, and 68% believed employers should increase their contribution rates.
However, people were less keen if that meant sacrificing a pay rise, with only 44% in favour of increasing employer contribution rates if that was the case.
Mr Jackson says in 2024, 2% more Westpac KiwiSaver members missed out on any government contribution than in 2023, which shows the impact of cost of living pressures, but he reiterates that people still have time to make sure they get it this year, if they can afford it.
"No matter what stage in life you're in, it's always a good time to be thinking about saving for retirement.
"Even if you can't afford to contribute to your KiwiSaver account right now, it's still worth thinking about your goals for retirement and how you're going to get there, including whether you're in the right type of fund for you and your stage in life," Mr Jackson says.
"If you're not sure about any aspect of your KiwiSaver account, come and talk to us."
*To get the $521.43 payment you must have been eligible for the full year ending 30 June 2025.
BT Funds Management (NZ) Limited is the scheme provider and Westpac New Zealand Limited is a distributor, of the Westpac KiwiSaver Scheme (Scheme).
Investments made in the Scheme do not represent bank deposits or other liabilities of Westpac Banking Corporation ABN 33 007 457 141, Westpac New Zealand Limited or other members of the Westpac Group of companies. They are subject to investment and other risks, including possible delays in payment of withdrawal amounts in some circumstances, and loss of investment value, including principal invested. None of BT Funds Management (NZ) Limited (as manager), any member of the Westpac Group of companies, The New Zealand Guardian Trust Company Limited (as supervisor), or any director or nominee of any of those entities, or any other person guarantees the Scheme's performance, returns or repayment of capital.
