Question:

A couple of questions regarding KiwiSaver. I am 64 years old and not employed.

First, I have joined in May and paid in enough to get the government tax credit due June 30, 2009, and the $1000 kick-start payment. Do I receive the tax credits for the next five years if I lump sum $1043 per year, or are they not available to me after I turn 65 this month?

Second, can I lump sum $1043 at any time from July 1, 2009, through June 30, 2010 - say, June 20, 2010 - and get the full $1043 government tax credit, or is it dependent on the number of days before June 30, 2010, that I make the lump sum payment?

Answer:

It's great that you've jumped aboard the KiwiSaver bandwagon before turning 65. You'll get several thousand dollars from the government, and you have to wait only five years to get your hands on the money.

As someone who joined KiwiSaver over 60, you'll get the tax credit - which matches your contributions up to $1043 a year - until the fifth anniversary of your joining date.

And yes, after your first year in the scheme is over, you can "lump sum" - we seem to have come up with a new verb here - any time during the KiwiSaver year.

That may not be the best strategy, though. It's generally better to drip feed money in, so you end up making at least some contributions when prices are relatively cheap. Putting in $87 a month is good for that, or even $20 a week, if you can manage that. An easy way is to set up an automatic transfer out of your bank account.

Mary Holm is the author of bestselling books on KiwiSaver and personal finance. She is also a highly praised seminar presenter. Her written advice is of a general nature, and she is not responsible for any loss that any reader may suffer from following that advice.