Free money? Yes please!

Are you Self Employed or receive a Shareholders Salary?

Business owners who are self-employed or receive a Shareholders Salary don't often contribute to their KiwiSaver fund, meaning that they are potentially missing out on a free $521 of Government money each year.

KiwiSaver is a tricky subject, but if you're enrolled or want to take advantage of the free Government Contribution then it is important to ensure you are contributing at least $1,042 to your KiwiSaver fund per year (1 July to 30 June). 

If you haven't already enrolled, or are enrolled but haven't contributed this year, this is your reminder to contribute before the end of June to ensure you receive the Government Contribution.

It is up to you!

When you’re self-employed, you’re the one in charge of your KiwiSaver contributions. Without an employer to make contributions on your behalf, you need to decide how much you want to commit to your retirement fund, if anything.

If you’re self-employed, why contribute to KiwiSaver?

There are two main selling points for KiwiSaver if you’re self-employed. 

  1. The Government contribution: eligible KiwiSaver members receive up to $512.43 each year. The Government will contribute 50% of what you put in over the year, up to a maximum of $512.43.

    Over time, that amount can really add up. Putting $512 each year into a growth fund that returns 9% annually will generate roughly $70,000 over 30 years. That’s money you haven’t had to save or earn.
  2. Fees are low: usually lower than other types of funds. 

The free money and the low fees mean it’s worthwhile for most self-employed people to contribute to KiwiSaver.

At a minimum, we normally recommend contributing enough to get the Government Contribution - there aren't many types of investments that will give you a 50% return on investment like KiwiSaver currently does.

As for additional contributions - you have the freedom to decide what is best for you. It is always a good idea to plan for retirement and KiwiSaver is an easy option for this - but you can plan for retirement in other ways too!

Remember to pay in by the end of June
To get the maximum member contribution, you need to have paid in $1042.86 by June 30. It can take a few days for contributions to be processed and arrive in your bank account, so ideally you should make sure your money is transferred by June 24.

That’s all you need to do. You’ll automatically receive the contribution in July.


If you want to know more about contributing to KiwiSaver – whether you should join, how it’s taxed, or how much to put in, for instance – we can help.