Just over 60 percent of people surveyed either thought NZ Super was income tested or did not know if it was or wasn’t, and just over 50 percent thought it was asset tested or did not know either way. There was also uncertainty over the level of NZ Super payments, even among those of retirement age.
So what is NZ Super?
New Zealand Superannuation is a pension paid by the Government to most New Zealand residents from age 65.
Who gets it?
To be eligible for New Zealand Superannuation you need to be aged 65 or over and a legal resident of New Zealand, having lived here for ten years since age 20. Five of those years have to be since you turned 50.
That’s it. There’s no asset or income testing, so it doesn’t matter how much you earn or how much you own.
How much is it?
New Zealand Superannuation provides around $13,700 a year for someone living alone, and $21,100 for a couple who both qualify.
The level of payment is reviewed each year and is adjusted to take account of increases in cost of living (inflation) and wages. New rates took effect on 1 April this year.
Do I need more?
For most people, there will be a gap between the annual income that New Zealand Superannuation provides, and the annual income they want in retirement. This gap needs to be filled by your own private sources of money such as:
• Savings - income from private pensions, investments, annuities and cash deposits
• Employment - you may be able to work part time, or continue your own business.
To calculate how much you’ll need for your retirement, and how quickly you can achieve your goals, visit the Retirement Commission’s free and independent website
www.sorted.org.nz.
Sorted is packed with information and powerful calculators to help you get ahead.
