Call to Enquire

09 306 5820

  1. Blog
  2. Q1 2017: NZ Super Update

New Zealand Super Update


Wealth Works Authorised Financial Adviser, Bonard Metahysa shares the latest NZ Super update...


   

More Kiwis are keen to boost their contributions towards their KiwiSaver, whether they’re saving for their first home or retirement. According to ANZ around 57% of KiwiSaver members would definitely increase their contributions or would be likely to do so sometimes in the future. It’s great to see Kiwi’s planning for their retirement especially in light of recent events.

 

The most recent proposed change by Prime Minister Bill English is to increase the age of retirement from 65 to 67. It has been proposed that the age of eligibility will begin progressively lifting in 2037, reaching 67 by 2040. If you’re born on, or after July 1st, 1972 then this affects you. The changes will not only impact the age of eligibility for NZ Superannuation (NZ Super) but also the age at which you can access your KiwiSaver contributions.

 

Current situation

  • New Zealand residents aged 65 and above are eligible for NZ Super.
  • The amount that is currently available for a single person living alone is $20,007 per annum or $30,780 for a married or de facto couple.
  • At age 65 you can withdraw your KiwiSaver contributions in one lump sum or keep investing, withdrawing what you need when you need it (provided that you have been a member for five years).

 

Proposed

  • New Zealand residents aged 67 and above are eligible for NZ Super.
  • At age 67 you can withdraw your KiwiSaver contributions in one lump sum or keep investing, withdrawing what you need when you need it (provided that you have been a member for five years).
  • Immigrants to New Zealand will have to live in NZ for 20 years to get access to NZ Super, including five years after they turn 50.
  • There has been no mention at this stage of following Australia by introducing means-testing.

 

Are you all set for your retirement? Or do you need to do some more planning?

Speak to your adviser or get in touch today for a complimentary consultation on 09 306 5820

Bonard Metahysa | bonard@wealthworks.co.nz 

 

 
© 2008 Wealth Works Ltd  www.wealthworks.co.nz
Website Design by Labyrinth Solutions  |  Content Management by Contegro