The New Zealand Pension Rip-Off

Another site has launched recently that may be considered to be essential reading for anyone intending to retire in New Zealand, whether they be a migrant or a returning New Zealander.

It’s at NZ Pension – and is called  “The New Zealand Pension Rip-Off – How the government confiscates overseas pensions

The author said:

“People entitled to a New Zealand pension, New Zealand Superannuation, who also receive an overseas pension, are likely to be in for an unpleasant surprise: their overseas pension will be deducted from their New Zealand Super.

This is called Direct Deduction. If this person’s overseas pension exceeds the NZ Super rate for one individual, the “excess” amount is carried over to their partner’s entitlement and deducted from his or her NZ Super. This is called Spousal Provision. The practice is governed by Section 70 of the Social Security Act.

In a worst-case scenario, one partner’s high overseas pension can cancel out a couple’s combined New Zealand pension entitlement. The New Zealand government uses other states’ contributory pension provisions for the payment of the NZ Super benefit…”

You may also be interested in retirement related issues in the following posts:

Trans-Tasman Migration Set to Soar “An increase in compulsory employer contributions to superannuation in Australia may see more New Zealanders moving across the Tasman..”

New Zealand’s Aging Population and the Great Kiwi Brain Drain – “According to data recently released by Statistics New Zealand the number of families is predicted to rise to 1.44 million by 2031, an increase of 269,000 (23 percent) from an estimated 1.17 million families at 30 June 2006. However, the majority of those families will be’ empty nesters‘, i.e. couples aged 50 and over…” (December 2008)

5 thoughts on “The New Zealand Pension Rip-Off

  1. I’ve just discovered at my cost just how unjust the NZ pensions systems are.

    I’ve live in NZ since 1966, arriving here as a 4-year-old. I hold A UK passport and citizenship. Permanent NZ residency.
    My partner and I, she being NZ born and raised and holds a UK passport, decided that we want to leave NZ and move to my mother home country of France.
    I read on the website I need to do 20 years in NZ + 5 years post 50 to get my pension.
    So was planning to make the move end of next year. when I’ll be 55. So I emailed WINZ people to find out what paperwork I’ll need to fill in to get my entitlement transferred.

    In short its a big ‘get stuffed’ you leave you don’t get it.

    Hang on, Ive worked in NZ all my life, born raised, paid my taxes and dues to society and Im being denied?! How the hell does that work.

    As it is my mother had a private UK pension she maintained after immigrating, and the govt take the lot and only dish out to her the standard pension.

    I think NZ govt should be changed in status from Political group to criminal gang!

  2. A story as recent as yesterday the first of April 2016.

    I am a New Zealander (born in 1940) who left on a working holiday to Australia in 1969 after being in the NZ workforce for 13 years. I married an lovely Aussie lass; raised four kids in Aussie and have six grandkids. After divorcing twenty years ago; remaining single and it now being too hot for me in Australia – I decided (at 75yrs of age) to return to live permanently in my native country that I love. I never applied for Australian naturalization.

    I have been advised that unless I apply for the Australian age pension from my new home in NZ – I cannot receive the NZ Superannuation. The Australian application is means tested; 31 pages long – with 92 questions to fill out. It is intrusive and an insult to human dignity. It even asks for my ex-wife’s full name; date of birth; date of divorce AND HER CURRENT ADDRESS. (what will they do with that information? Contact her? Over my dead body).

    Now to the point – which I will emphasize in upper case.


    I consider this punitive; and I wonder if it is even legislated or constitutional?

    The illogical and cynical bit of bureaucratic nonsense here – is that if I had applied to Australia – I WOULD have been paid that pro-rata super amount based on the 13 years working in NZ.

    I am being punished for not applying

  3. Expatriation is a social trend following on the heels of the trend in globalisation which began in the late 80s and has only picked up steam. They read up about the disastrous state of their country in their own national media, which is inclined to look at its own warts much harder than the Kiwi media is, and get it into their heads that some other place must be better. Some other factors driving expatriation, and repatriation:

    As can be observed from this and other forums, and the activity on them, there was a blip in expatriation in the early to mid-2000s:

    You can see how this trend has tailed off, among other reasons because swinging exchange rates are making it difficult for expats living off of foreign pensions and incomes. Too bad for those of us who can’t reverse the horrible mistake. Shocker to find so many problems in New Zealand, problems thankfully being exposed on sites such as this one. The aforementioned blip in migration was a social trend, but also market-driven, through the branding campaign. The govertnment-corporate moneymaking machine is brilliant in its ability to spin impressions from positive events, however, and I have no faith that they’ll stop the spin. Where Lord of the Rings left off, Rugby has picked up. At least rugby fans will find a more realistic portrayal of Kiwi society in the exploitation of the rugby win. Kiwis are indeed peculiarly sports-mad:
    “A key attraction for students coming to the South of New Zealand is the easy access to both a cultural environment where theatre and music are important parts of the city fabric, and to experience the peculiar New Zealand focus on sports. Rugby and netball are high-profile sports in the city, and international students find these two codes a challenge. They soon get involved in the student culture at the stadium and enjoy the fun associated with sport. New Zealanders like sport and exercise, and there are plenty of opportunities for recreation everywhere you go.”

    That’s putting it mildly. I would not venture to say that anyone should move to New Zealand to enjoy theatre and music. In fact, if you enjoy the arts, stay far away from here! If you never cared for “jock culture” at school, please don’t move to New Zealand. It is Jock Heaven (and smart person hell). Buyers beware!

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