More than 9,000 people over the age of 65 in New Zealand earn more than $200,000 annually and are still claiming the NZ Superannuation, commonly known as the pension.
The issue of whether high earners should continue to receive the pension has prompted debate, with some questioning the fairness of the system. RNZ has launched a new podcast, ‘No Stupid Questions’, hosted by Susan Edmunds, to address public concerns about money and the economy. Listeners can submit questions via email at [email protected], including voice memos.
While pensioners receiving NZ Superannuation pay tax on the benefit, with some of that revenue returning to the government, the Retirement Commissioner has acknowledged the validity of questioning the system’s equity. One correspondent to RNZ expressed frustration, noting they stopped working due to ill health but would have continued for another decade if able, and would not have expected to receive the pension had they been in that position.
Some individuals may continue working while receiving the pension to bolster their savings, making it less appealing to reduce their entitlement. Sir Ian Taylor promotes Share My Super, an organization enabling pensioners to donate their benefits to charity if they do not require the funds.
RNZ likewise addressed questions regarding the use of KiwiSaver funds for purchasing property outside of New Zealand. Individuals who have resided outside of New Zealand for over a year can generally withdraw their KiwiSaver funds – excluding government contributions – by declaring permanent emigration, and use the funds for any purpose, including a home purchase. However, moving to Australia presents complications. KiwiSaver funds can only be transferred to an Australian superannuation account, and withdrawals for a first home purchase are limited to a maximum of $15,000, depending on the Australian super scheme.
Those remaining in New Zealand cannot utilize their KiwiSaver funds for property purchases elsewhere, as the funds are intended for a primary residence within the country.
RNZ has launched a weekly newsletter, ‘Money with Susan Edmunds’, covering financial matters.
