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Clearing up NZ Super confusion

Wednesday, June 10, 2009
Clearing super confusion
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Article from Sorted.org.nz

The government's decision to suspend automatic payments to the New Zealand Superannuation Fund does not affect New Zealanders' fortnightly NZ Super payments.

The names may sound similar, but the New Zealand Superannuation Fund and NZ Super are quite different things.

What is the New Zealand Superannuation Fund?
The New Zealand Superannuation Fund is an investment fund set up to help pay for the expected increase in the cost of New Zealand Superannuation from around 2030. It has no impact on NZ Super payments today.

In the 2009 budget the government announced it will not be making automatic annual payments to the New Zealand Superannuation Fund until the government accounts are next in surplus. This is not expected to be for at least 10 years.

What is NZ Super?
NZ Super is short for New Zealand Superannuation, the state pension paid to most eligible New Zealanders when they turn 65. Maximum annual after-tax rates for NZ Super are currently $16,169 for singles living alone and $24,876 for couples.

Current NZ Super payments are funded by taxation. They are not funded by the New Zealand Superannuation Fund.

The government has also reiterated that it had no plans to change the current age of eligibility for NZ Super, which is 65 years. Current payment levels would also be maintained.

Note that there is no "retirement age" in New Zealand — there is no law to stop you working past age 65.

For more information about retirement saving and managing your money in retirement, visit www.sorted.org.nz — your independent money guide.

SortedArticle provided by Sorted.org.nz. To find out more, visit the Retirement Commission website www.sorted.org.nz — your independent money guide. It's packed with free information, tools and calculators to help you plan for retirement and manage money throughout your life.

User reviews
The information provided was very clear and concise. In these times of constant change it has removed a lot of worry in it's clarity. I can now look forward to retirement after fifty long years of work, most of which has consisted of manual labour, and have wondered whether the age for eligibility will be raised, payments reduced or even stopped. Thank you "sorted.org.nz" for bringing your wisdom and findings to us people at the "wrong" end of the spectrum.