Retirement
The retirement age in New Zealand is currently 65, at which stage all qualifying people are then entitled to National Superannuation (pension). However, people are able to stay in work after the age of 65 if they choose. Superannuation is often referred to as "Super".
Details about the New Zealand superannuation scheme can be found on the Work and Income website.
Residential qualification for New Zealand superannuation
No person is entitled to New Zealand superannuation unless the person—
(a) is ordinarily resident in New Zealand on the date of application for New Zealand superannuation; and
(b) has been both resident and present in New Zealand for a period or periods aggregating not less than 10 years since attaining the age of 20 years; and
(c) has also been both resident and present in New Zealand for a period or periods aggregating not less than 5 years since attaining the age of 50 years
Kiwisaver
As with many developed nations New Zealand has a growing population ‘bubble’ of citizens and residents who will be entitled to superannuation over the next two decades.
The government initiated saving scheme Kiwisaver provides all participating New Zealanders with the opportunity to add to their government superannuation by starting early to save for their retirement.
Kiwisaver deducts an agreed percentage from participating employees’ salary or wages, and requires the employer to match this – with support in the form of tax relief from the government.
Kiwisaver is currently an optional scheme, however there are on-going discussions in regards to making it compulsory. Kiwisaver is available for citizens or permanent residents. See the Kiwisaver website for more information on eligibility.
Participating members are able to chose who manages their investment from a group of approved money manager investors. Different investment managers also offer programmes with a variety of risk and return profiles.
It is envisaged that Kiwisaver funds will provide a key component of the money required for retirement income as the ‘Baby Boomer’ generation retires.
Full details about Kiwisaver are available from the Kiwisaver Website
Overseas Pensions
There is information about getting overseas pensions in New Zealand on the Work and Income website. For migrants with overseas pensions there are some issues to consider regarding taxation, which can be complex. It may be worth getting specialist advice on this matter. There is currently a proposal to simplify the tax laws on overseas pensions under consideration.
Retirement Villages
Many New Zealanders move to a retirement home or village at some point in their retirement. The Sorted website has some information about what to consider when choosing a village. The information covers tips for choosing a retirement village, costs, legal matters and the Retirement Villages Act.
Sorted.org also have some useful checklists to help with the selection process.
More information
The Office of the Retirement Commission
http://www.retirement.org.nz/
The Sorted website
http://www.sorted.org.nz/home/sorted-sections/retirement
