What is NZ Superannuation? The New Zealand Superannuation, also called NZ Super is a retirement income for New Zeland citizens who are at
What is NZ Superannuation?
The New Zealand Superannuation, also called NZ Super is a retirement income for New Zeland citizens who are at least 65 years old. It was created by the New Zealand Superannuation and Retirement Act of 2001 and provides retirees with supplemental income to cover life’s basic nessecities. It is also important to understand that it NZ Superannuation only aims to help you cover the essential cost of living. When paired with other retirement funds and assets that generate an income you can confidently enjoy your retirement and live comfortably.
New Zealand Superannuation is the more formal name given to the pension. Often shortened to “NZ Super”, “Super”, “Pension” or National Super”. 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.
Payment amounts are outlined in our dedicated NZ Superannuation rates guide which covers all different amounts that can be received depending on your circumstances.
Example of what NZ Superannuation may look like?
For example a couple which are both now 65 will each receive a fortnightly income of $817.32 ($1632.64 including both) before tax and after tax for example using the standard ‘M’ tax code you will receive $712.22 each after tax per fortnight or $356 per week. These payments are made fortnightly every second Tuesday directly to your bank account.
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.
Who Qualifies for NZ Super Annuaition ?
To be eligible for NZ Super, you need to be aged 65 or over and be a legal resident of New Zealand. You can get NZ Super even if you’re still working. Currently you need to have lived here for 10 years since age 20.
Standard rates from 1 April 2022 until 31 March 2023
Here are the current superannuation rates of NZ Super from 1 April 2022 after tax has been deducted at rate ‘M’. For other tax codes, see the Work and Income website.
Standard NZ Super Rates after tax (for tax code M)
| Qualifying as | Weekly rate | Fornightly rate | Annual rate |
| Single: living alone | $463 | $926 | $24,073 |
| Single: sharing | $427 | $854 | $22,221 |
| Married, civil union or de facto couple: one partner qualifies (and the other is not included) | $356 | $712 | $18,518 |
| Married, civil union or de facto couple: both partners qualify | $712 | $1424 | $37,035 |
| Married, civil union or de facto couple: one partner qualifies and the other is included | $677 | $1354 | $35,20 |
| Weekly Amount(gross/before tax) | Fortnightly Amount (gross/before tax) | Annual Amount(gross/before tax) | Annual Amount(after tax, with total income up to $48,000 p.a.) | |
| Single (living alone or with a dependent child) | $538.24 | $1,076.48 | $27,988.48 | $24,201.46(or $465.41 weekly) |
| Single (living with someone who is not a partner) | $495.10 | $990.02 | $25,740.52 | $22,378.14(or $430.35 weekly) |
| Couple (one or both of you quality for NZ Super) | $408.66 (each) | $817.32 (each) | $21,250.32 (each) or $42,500.64 (Together) | $18,216.13(or $350.31 weekly) |
Can I still receive NZ Super while I have a fulltime job?
You can still get your NZ Super or Veteran’s Pension while you’re working or getting other income. This may affect the amount of income tax you have to pay on your combined income.
How much can I earn before it affects my NZ Super?
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).
How much can I earn before my NZ Super is affected?
The first $160 of combined income a week (before tax) doesn’t affect your payments. for every $1 you get over $160, your total NZ Super or Veteran’s Pension payment is reduced by 70 cents
How much can you spend in retirement without running out of money?
The 4% rule is a common rule of thumb, but we think you can do better by finding your personalized spending rate.
For example, let’s say your portfolio at retirement totals let’s say your portfolio at retirement totals $1 million. You would withdraw $40,000 in your first year of retirement. If the cost of living rises 2% that year, you would give yourself a 2% raise the following year, withdrawing $40,800, and so on for the next 30 years.
E.g. $1,000,000 / $40,000 = 25 years
Therefore if your were to retire at age 65 this would last you till age 90 without taking into account for NZ Super.
In Summary
It is important to create a financial plan for retirement to ensure you can live comfortably. Although the NZ Superannuation can help you to sustain basic living costs most commonly society often neglect retirment planning as this can be daunting and can seem to far away.
However, becoming self aware with your financial situation and confronting yourself well before retirement ensures that your will be financially prepared to live sustainably and enjoy retirement.
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