Will I be eligible for NZ Superannuation?

Find out whether you will be eligible for New Zealand Superannuation, the NZ state pension, when you retire in New Zealand - and how much it is. 

• are 65 years of age or over and
• are a New Zealand citizen or permanent resident and
• have lived in New Zealand for a certain amount of time and
• normally live here when you apply

• a total of 10 years since you turned 20 and
• 5 of those years have to be since you turned 50.

Due to the International Social Security Agreement in place between New Zealand and the UK, years you have lived in the UK also count towards the residence requirement for New Zealand Superannuation. Your years spent living in New Zealand also count towards your UK State Retirement Pension if you retire in the UK, so it is seldom worth continuing or “topping up” your National Insurance contributions in the UK.

New Zealand Superannuation is based on 66% of the after-tax average national wage for a couple. As of 1st April 2009 the amount retired people receive is as follows:

While this may or may not be sufficient to survive on depending upon your individual circumstances, like other benefits in New Zealand it will not cover much more than this. New Zealanders who are able to save into private pension plans or use other investment strategies can expect a higher standard of living in retirement. We can run through your options and make recommendations appropriate to your circumstances when you arrive in New Zealand.

For more information on New Zealand Superannuation, see the government Work and Income website.

Partner Payments

The rate where only one partner qualifies sometimes affects couples who have emigrated from the UK. If one partner is entitled to more UK State Retirement Pension than NZ Superannuation and the other isn't, the income of the partner receiving the UK pension currently reduces the amount of NZ Superannuation that the other partner receives.

The New Zealand Superannuation Fund

New Zealand has made provision for funding New Zealand Superannuation for the population bulge caused by baby boomers with a special fund called the New Zealand Superannuation Fund. The NZ Superannuation Fund was established in 2001 and is also known widely as the Cullen Fund. By law the government is not allowed to draw on it until 2020.Up until 2009 the New Zealand government made generous contributions to the fund.

The government announced in the 2009 NZ budget that it was not only freezing government contributions to the NZ Super Fund, but that it did not envisage making further contributions for at least 10 years. Like every other government, the NZ government has been affected by the global market downturn and the credit crunch and this is one way for it to save money.

This has caused widespread unease in New Zealand, as the state pension is a major part of most people's provision for their retirement. The NZ government has committed to continuing to fund a universal state retirement pension from the age of 65 at current rates, but other countries are having a lot of trouble funding their state pensions - the Australian government has announced that their pension age is increasing to 67, and the UK pension age is going up to 68.

If you have your doubts about whether the government of the day will be able to provide you with a New Zealand Superannuation benefit of 66% of the average wage from the age of 65 by the time you retire, it might be time to start thinking seriously about making independent provision for your retirement. Please contact us for more information about the best way to build up your retirement savings in New Zealand.

Read on for the fourth in our series of articles on State Pensions in New Zealand, our UK State Pension / New Zealand Superannuation Decision Guide.

Please fee free to contact us if you have any questions about your UK pensions, and don't forget to order your free copy of our comprehensive UK Pension Guide.