What is NZ Super?
NZ Superannuation (NZ Super) is a fortnightly payment for Kiwis who are over 65 and meet the following criteria:
- NZ citizen / permanent resident / or hold a residence class visa
- Are ordinarily a resident in NZ, the Cook Islands, Niue or Tokelau
- Have lived in NZ for at least ten years since turning 20. (Must include five years since turning 50)
How much is NZ Super?
The current superannuation rates (after tax, if you have no other income) are:
- Individual: $555.15 per week or $28,867.80 per annum
- Couple (assuming both qualify): $854.08 per week or $44,412.16 per annum
NZ super is paid fortnightly on a Tuesday.
Your superannuation alone likely won't be enough to cover your retirement costs, no matter how frugal you are. As a result, many Kiwis work well into their golden years to cover extra expenses.
Can I claim NZ Super and still work?
Yes, you can apply for NZ Super even if you are still working, and your eligibility is not determined by your income or assets. However, any income you earn may impact other payments you receive from Work and Income.
Receiving additional income may also result in a change to your tax code. And as NZ Super is a taxable payment, this could, potentially, mean you pay more tax on your NZ Super payments.
If you receive an overseas pension, you can still receive NZ Super, but this may influence the amount of your NZ Super payment.
Can I claim KiwiSaver while working?
KiwiSaver is a voluntary, work-based retirement savings scheme. You're eligible to withdraw all your KiwiSaver savings when you reach the age of eligibility (currently 65).
But you don't have to be retired to be eligible to withdraw your KiwiSaver. You can keep on working well into your golden years and also access to your KiwiSaver fund.
How much KiwiSaver you withdraw is also up to you, and all withdrawals are tax-free. This is because any returns your KiwiSaver fund has made will have already been taxed at your prescribed investor rate (PIR). Thankfully, across the board, PIRs are a lot lower than income tax rates.
Will my employer still contribute to my KiwiSaver?
Your employer is not legally obligated to keep making employer contributions once you turn 65.
However, some employers do continue to pay their contribution. If that's the case for your employer, you should think hard before you stop contributing or opt out of KiwiSaver, as continued investments will help grow your nest egg.