When you reach 65 in New Zealand (the current age of eligibility) you are entitled to receive the New Zealand Superannuation income. This is subject to residence requirements: Currently, to get NZ Super or Veteran's Pension, you must have lived in NZ for at least 10 years since you turned 20. The 10 or more years must include 5 years since you turned 50.
The rate at which New Zealand Superannuation is paid changed on the 1st April each year. This is broadly linked to the increase in inflation each year (although the actual measure used may change from time to time).
The Superannuation income is paid regardless of how many assets you have, and regardless of how much income you earn. [However, it is declared based on the marginal tax rate of 17.50%, so if you earn more than that and pay 30%, 33% or 39% marginal tax, the net amount you receive will be less - and may be sorted out by an accountant at the end of the year if you haven't directly advised WINZ].
If you go overseas for 6 months or more, your NZ Superannuation income will be stopped unless you apply for an exemption (and generally you need a pretty good reason as to why you should continue to get the NZ Superannuation income).
In recent years, with higher inflation, the amount of income received has increased significantly. The following rates are the amounts that you will receive from 01/04/24.
Your status | Weekly after tax at 17.50% per fortnight | Annual gross income to be used when working out how much you earn, for your marginal tax rate |
|---|---|---|
Single living alone | $1,038.94 | $31,546.84 |
Single sharing | $959.02 | $29,032.12 |
Couple both eligible | $799.18 each | $23,993.32 |
In addition, as a superannuitant, you are eligible to receive the Winter Energy Payment, which is payable from 1st May until 1st October (5 months) at the following rates:
Single person | $20.46 a week |
|---|---|
Couple | $31.82 a week |
If you go overseas for 28 days or more, you have to register your travel so that payment is stopped while you are away. The link for the form is here:
This universal superannuation helps make a big difference in our clients retirement savings analysis and planning, as it provides a broad base to build on.
