If you are not an employee of a company, you will need to make ‘voluntary contributions’ to your KiwiSaver account.
Firstly, let’s cover off the why. Here at Ducks in a Row, we think damn near everyone should be in KiwiSaver, contributing at least 3% of their income. But if we can’t convince you to do that, you should at least consider contributing a total sum of $1,042 per year.
Why? Because if you do, the Government will give you $521 each year. No strings attached.
For every $1 you put in to your KiwiSaver account, the government will contribute 50 cents, up to a total of $521, every single year. That is a 50% return on investment on your $1,042 – which is huge. And it will only cost you about $20 per week.
One thing to note: you only qualify for this perk if you are aged between 18-64, and mainly live in New Zealand.
Now, let’s get down to how you go about making contributions.
Oddly enough, this isn’t as straightforward as it should be, so we’ve broken it down for Westpac, ASB, ANZ and BNZ account holders.
There are a couple of ways you can make voluntary contributions. Either set up an automatic payment, or make manual payments.
Some banks don’t let you make automatic payments for KiwiSaver contributions – including Westpac and ASB. So, if you’re with one of those banks, you will need to do it manually each time.
You could do a one-off payment of $1,042, or split this into two or three payments throughout the year. But if your bank lets you, it can be easier to simple set up an automatic payment of approximately $21 a week to receive the maximum member tax credits.
Whichever way you do it, make sure you’ve contributed at least $1,042 before June 30th every year, as this is the cut-off date.
ANZ
Go onto your online banking
Set up a payment (manual or automatic)
Go to your payees list – Search for the name of your KiwiSaver provider. (Image 1 below)
Select the amount you want to contribute (eg $20), when the first payment is to be deducted and the frequency of payments ongoing. (Image 2)
It will ask you to add the reference details so your KiwiSaver provider can identify you. If you’re not sure what they are, they will be on your KiwiSaver statement or online profile. (Image 3)
Select confirm and you’re all done!
Image 1
Image 2
ASB
Go onto your online banking
Click the payment tab and select ‘IRD Payments’ from the drop-down menu.
Select ‘KiwiSaver member account (KSS)’ from the drop-down menu. (image 1)
Put in your IRD number, the amount you want to contribute (eg $20). (image 2)
Select next, confirm and you’re all done!
Image 1
Image 2
Westpac
Go onto your online banking
Select ‘Pay and transfer’ on the right hand bar
Select the account you want the money to come out from.
Select ‘IRD (inland revenue) pay tax’ from the drop-down menu.
Under the details section, select ‘KiwiSaver Member Account’ from the drop-down menu.
Put in the amount you want to contribute (eg $20).
Select confirm and you’re all done!
Image 1
BNZ
Go onto your online banking
Select ‘pay or transfer’ from the drop-down menu
Select the account you want to contribute from (eg savings). (image 1)
Select ‘Employer - KiwiSaver deductions for employees - KSS’ from the drop-down menu.
Put in the amount you want to contribute (eg $20) and your IRD number.
Select continue and you’re all done!
If you would like to get your ducks in a row, just click the button below and we will sort the rest.