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Retiring on NZ Super

Nick Roberts • July 21, 2015
Single, living alone  $431.10 
Single, sharing accommodation  $396.17 
Married person, or partner in a civil union or defacto relationship  $326.30 

And these amounts are before tax!  Let's look at some other ways that your superannuation may be reduced:

  • Going overseas. This is a complicated area but basically, if you go overseas for more than half a year you may find your super payments being reduced or even cut completely, as it depends on how many years you have lived in New Zealand prior to retiring. So be very careful to plan long visits to see your grandchildren overseas as it may be a more costly trip then you envisaged.
  • Migrants. To get the full NZ super you have to have been in New Zealand for 10 years. However, all is not lost if you come from a country with which New Zealand has a social security agreement because in that case, you should be able to receive your full super based on your work record in that country.
  • Earnings. Currently, the NZ super is not means tested which means you can still go out to work and earn additional money if you choose to do so without your NZ super payments being affected. However, if you have included your partner in your payments (because they are not entitled to NZ super in their own right) then you can earn up to $100 (before tax) a week between you, before your New Zealand Superannuation is affected. If you earn more than $100 (before tax) a week your payments are reduced by 70 cents for every dollar of income over $100 (before tax). 
  • Relationship status. As you will see from the figures above, how much NZ super you receive depends on your relationship status. These days relationships are a lot more complicated than they used to be and many are half in or half out of a relationship perhaps with some joint assets like bank accounts but may be living alone for part of the time or like a friend of mine, banished to a man cave in the relationship property. All this becomes tricky when it comes to claiming NZ Super because the amount you are entitled to depends on whether you are in a relationship or living together in the same property and sharing facilities. WINZ have some long and complicated questions to determine your true relationship status so be careful!

Click for our article on 'How much to save for retirement' , and here for '7 things that can support your retirement'. Enjoy!

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