Work and Income

Work and Income

Tips for coping with redundancy

If you have lost your job or are worried about being made redundant, there are steps you can take to ease the financial pressure.

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NZ Superannuation - current after tax rates

The current NZ Super rates (as at 1 April 2009) after tax at rate 'M':

Qualifying as Weekly
rate		 Annual rate
Single (living alone) $310.95 $16,169
Single (sharing) $287.03 $14,926
Married, civil union or de facto couple
(both partners qualify)		 $478.38 $24,876
($12,438 each)
Married, civil union or de facto couple
(one partner qualifies)*		 $454.98 $23,659
($11,829 each)
Married, civil union or de facto person
(partner not included)		 $239.19 $12,438

Source: Ministry of Social Development. Effective 1 April 2009.
All taxed at M code, net rates.

*If you have a partner who doesn't already qualify for their own NZ Super, you can choose to 'include' them in your payments. If you do this you could both get paid but any other income either of you earn could affect how much you get. For help working out the best option, contact Work and Income on 0800 552 002 or www.workandincome.govt.nz.

These figures are intended as a guide only. If you want to know more about the level of NZ Super you would be entitled to, contact Work and Income on 0800 552 002 or visit www.workandincome.govt.nz.

If you receive a pension from an overseas government, it is likely to be deducted from your NZ Super. For more details call Work and Income on 0800 552 002 and ask for the International Services office.

NZ Super is taxed before you get it, but you still need to pay tax on any other income you get. If you do have other income or receive an overseas pension, talk to Inland Revenue about your tax rate so you don’t get a tax bill at the end of the year. Call Inland Revenue on 0800 227 774 (have your IRD number handy).

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Accommodation Supplement - Rosemary

Kiwi Story

Rosemary was nearly 65 and was looking forward to retiring from her part-time job. However, she was concerned ...

Other Government support

In addition to New Zealand Super, you may qualify for some extra government assistance if your income falls below a certain level.

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Residential care subsidy

If you are aged 65 or over and need financial help to pay for long-term care in a rest home or hospital, you might qualify for a Residential Care Subsidy.

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Rest homes and private hospitals

Although most people remain in their own homes during retirement, a small number shift into rest homes.

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Renting

If you are considering selling and renting to free-up capital and improve your retirement lifestyle, talk first to someone with financial knowledge.

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Home ownership

For many retirees, their home isn't just somewhere to live. It's also their biggest, or only, asset.

Glossary: asset
An asset is a useful or valuable person or thing. In financial terms it's an item that can be converted into cash such as bank deposits, shares or property.
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Impact on government benefits

There are several government-provided benefits that can be reduced if you have other "income". The main benefits that could apply to a retiree include:

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New Zealand Superannuation

New Zealand Superannuation (NZ Super) is a pension paid by the State to most New Zealand residents from age 65 until death.

Glossary: pension
An income paid at regular intervals to a retired person, by a government or through an employer superannuation scheme.
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