NZ Superannuation in a Nutshell

Our guide explains everything you need to know about entitlements, applying, how overseas pensions affect entitlements, working after 65 and other receiving benefits

Updated 24 August 2020

• ​New Zealand Superannuation is the more formal name given to the pension. Often shortened to "NZ Super", "Super", "Pension" or National Super" it is the payment proper become eligible for once they turn 65.
• ​There are no income or asset limits that might prevent eligibility and payments continue as long as you live in New Zealand. You can remain in full time or part-time work once you turn 65 and still receive New Zealand Superannuation payments.
• Payments are made fortnightly directly to your bank account. A single person living alone could expect to receive $847.66 per fortnight before tax.

Our guide covers:

• Eligibility Criteria for New Zealand Superannuation
• Must-Know Superannuation Facts and Considerations

Eligibility Criteria for New Zealand Superannuation

The key eligibility criteria for New Zealand Superannuation are that you:

• Are 65 years of age or over
• Are either a New Zealand citizen, a permanent resident, or hold a residence class visa
• Are ordinarily resident in New Zealand, the Cook Islands, Niue or Tokelau when you apply
• Have lived in New Zealand for at least 10 years since you turned 20
• Have lived in New Zealand, the Cook Islands, Niue or Tokelau (or a combination of these) for at least 5 years since you turned 50.

The residency criteria can be quite strict, and if you've lived in one of a number of countries during your life, you may need to confirm the dates you were in and out of New Zealand. ​The easiest way to do this is to give Work and Income permission to obtain your travel records from Immigration New Zealand.
If you don't meet the residency criteria for New Zealand Superannuation, you may be eligible to apply for a different type of assistance under hardship provisions - either Jobseeker Support or as a last resort, an Emergency Benefit.

How to apply:

1. As with most type of assistance available from Work and Income, you'll need to complete an application form either online or in person, attend an interview and provide verification of some of your documents.
2. The documents you'll need are two forms of identification (e.g. a Birth Certificate and/or Passport plus something else), verification of your bank account details, and information about any additional income, investments, expense or overseas pensions.
3. For straightforward applications (and in response to Covid-19), Work and Income are offering phone appointments to complete your application if you start the process online.

​When to apply:

1. Work and Income recommend making contact with them three to four weeks before your 65th birthday to ensure that your payments can start as soon as you turn 65.
2. If you have received Work and Income assistance in the past, then they may send you a letter inviting you to apply, but don't rely on this happening.
3. As with most assistance from Work and Income, payments can only be backdated to the day you first make contact, so don't leave it too late otherwise you will miss out on unclaimed superannuation.
4. Remember, you don't need to be out of work or have finished work to receive New Zealand Superannuation - you can keep working as long as you like while receiving your superannuation payments at the same time.

New Zealand Superannuation - Must-Know Facts and Considerations

​New Zealand Superannuation isn't KiwiSaver

KiwiSaver and New Zealand Superannuation are two different things.  ​KiwiSaver is a (mostly) voluntary retirement savings scheme where you choose to put a percentage of your salary or wages aside into an investment account. When you turn 65 you can access your KiwiSaver savings to support you during your retirement. You can receive both KiwiSaver and New Zealand Superannuation, or just one, or neither.

Because New Zealand Superannuation isn't income or asset tested, receiving either a lump sum KiwiSaver payment or a regular payment each week doesn't affect your entitlement. However, once you can access your KiwiSaver savings at age 65, Work and Income does consider the money an asset, which may prevent you from receiving additional support from Work and Income like the Accommodation Supplement, the Disability Allowance or assistance with emergency food.

We strongly recommend you seek advice about what to do with your KiwiSaver savings when you turn 65. We are aware of new retirees who have withdrawn their entire KiwiSaver balance and fallen into the trap of spending it all at once on cars and holidays believing this is the only way to be eligible for Work and Income assistance.

Its well worth investigating options for receiving regular payments from KiwiSaver so you can benefit from investment returns, rather than a lump sum payment into your bank account.

If you have lived overseas you may need to provide detailed paperwork

Because both overseas pensions and time outside of New Zealand can effect your entitlement to assistance, getting a good picture of where you have lived can form a big part of your application.It's best to be prepared. Try and write down where you have lived and when before your appointment, and think about if you worked at the time and if you may have been eligible for a Government pension—even time doing and OE or living in Australia count.

Doing a small amount of preperation work can save a lot of time in your application and prevent delays.

Know this: ​While most forms of income don't affect your New Zealand Superannuation payments, pensions or superannuation paid by other countries do.

• If you receive a Government pension from any other country, the amount you receive is deducted from your payments from the New Zealand Government. Generally, you receive the payment from the overseas Government and Work and Income make a dollar for dollar deduction from your New Zealand Superannuation payments, allowing for bank fees and currency conversion.
  
• If you receive a benefit or pension from The Netherlands, Jersey and Guernsey, United Kingdom or Ireland you can choose to have your overseas benefit or pension paid by the Special Banking Option. This means you receive your full New Zealand Superannuation payment from Work and Income, and your payment due from the overseas pension is paid directly to the Government.
  
• This doesn't apply to voluntary superannuation schemes and pensions (e.g. overseas versions of KiwiSaver) but does apply to compulsory schemes or schemes run by Governments.
  
• If you have lived and worked in a few countries this can get quite complicated, so best to think about what you might be eligible for from overseas before you apply so you are prepared.
  

What if I just don't apply for my overseas pension?

1. Work and Income will require that you test your eligibility to an overseas pension if there is a possibility you will qualify.
   
2. Depending on the country, this can be quite complicated, but they have a dedicated department (International Services) to help you through the process.
   
3. Unfortunately, opting out of making an application isn't really an option.

Beyond the superannuation payment, you are also able to apply for additional support

​As long as you meet the income and asset requirements, you are still able to receive supplementary assistance from Work and Income when you receive New Zealand Superannuation. This can include:

• Hardship assistance such as food grants or advance payments of benefit
• Accommodation Supplement if you are paying rent, board or mortgage costs
• Disability Allowance if you have ongoing costs related to an ongoing disability.

You can include an application for this assistance when you apply, or apply any time once your New Zealand Superannuation has been granted.

Special assistance for Veterans and their partners

​If you have served in the Armed Forces, you may be eligible for a Veteran's Pension rather than New Zealand Superannuation. There are financial advantages to receiving a Veteran's Pension and other grants and allowances to people in specific circumstances.

If you think this may apply to you then before applying for New Zealand Superannuation, contact Work and Income's Veteran's Pension Centre on 0800 650 656 to talk about your circumstances, and they’ll explain how to apply.

​SuperGold Card

SuperGold - or the ‘gold card’ as some people know it is a programme that offers discounts for people who are over the age of 65. Discounts can range from things like electricity, insurance, food and healthcare to free off-peak public transport.

​You don’t have to do anything to get a SuperGold Card, once your New Zealand Superannuation has been granted, Work and Income will automatically send you the card in the mail.

The SuperGold Card isn't a replacement for the Community Services Card - you can use both with the Community Services Card being more closely linked to healthcare services.

​Including your partner under 65 years of age

• Currently, if you get New Zealand Superannuation and have a partner who doesn’t qualify because they haven't yet turned 65, you can choose to include them in your payments. If they aren't working this can work out better for you financially.
• From 9 November 2020, you won’t be able to include non-qualified partners in your payments. Instead, your partner will be able to apply for other kinds of assistance.

Know this: If you include a non-qualified partner in your application, then there is a deduction made based on you or your partner's income:

1. You can earn up to $115 a week, or $5,980 a year (before tax) between you before your New Zealand Superannuation is affected. If you earn more than $115 (before tax) a week your payments are reduced by 70 cents for every dollar of income over $115 (before tax).
2. There may be an impact on your tax rate too, depending on any other taxable income you receive.
3. If you don't include your partner, you'll only receive the single rate of payment
4. While this framework seems complicated, Work and Income suggest talking to them about your individual situation when you apply. They'll help you work out what the best option is for you.

Important: It is a popular misconception that Work and Income staff are encouraged to deny people their full entitlement to assistance - this is not true. Staff can be penalised if they don't ensure people they see are receiving their full and correct entitlement to assistance.

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Related guides

1. Navigating Work and Income - an essential must-read guide that explains everything you need to know about dealing with Work and Income before visiting your local office
2. Retirement Calculator - calculate how much you need for your retirement
3. Community Services Card - we cover who qualifies, what it offers and why they're important
4. Understanding urgent costs and living expense assistance - we explain what's available to anyone in urgent need