Source: Radio New Zealand
Old couple illustration. 123rf
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I am 86 years old and my wife and I only receive the pension and rent at $400 per week and every time the pension rates increase our accommodation allowance is reduced.
It started at $310 per fortnight and has been reduced each year and now it is $272 per fortnight. I do not know the amount it will reduce from the 1st of April 2026 but it means that eventually there will not be an accommodation allowance.
This means we are falling behind as inflation is continually increasing.
People whose home is unencumbered are the only winners in this country as they receive the full amount of the pension.
We do not smoke, drink alcohol, or take drugs and only require a peaceful and dignified life in our remaining years on this earth. The winter energy payments have never been increased. Why?
I talked to the Ministry of Social Development about this.
Paula Ratahi-O’Neill, the general manager of centralised services said when a main benefit or NZ Super went up, this could affect some types of additional supports like the accommodation supplement, but it depends a lot on a person’s individual situation.
“This is because how much you can get through the accommodation supplement is based on several factors including income, assets, accommodation costs, family circumstances, and where you live.
“The minimum accommodation costs a person has to pay each week to be able to get the accommodation supplement – referred to as entry thresholds, are based on main benefit and NZ Super rates. This means when main benefit or NZ Super rates go up, the minimum accommodation costs to get the accommodation supplement also go up.”
How much you receive is also driven in part by how much you have to pay for your accommodation.
“Whether a person who receives NZ Super could see a decrease in their accommodation supplement payment will depend on how much their accommodation costs are. For example, if their accommodation costs are high enough that they receive the maximum rate of payment, their accommodation supplement may remain the same.
“In both instances, the total amount someone gets from us after the 1 April changes won’t be less than what they were getting before.”
In terms of the Winter Energy Payment, you’re right that it hasn’t lifted since it was introduced.
I checked with Jake Lilley at Fincap, who said there is sometimes talk about targeting it more precisely but financial mentors are worried that adding more hurdles to receiving it could mean people who need it most won’t end up claiming it.
He said MBIE reporting in 2024 found that 132,000 households could not afford to keep their homes adequately warm in the previous 12 months.
My query concerns my Australian superannuation fund – which has been active for over 40 years now, but for 32 of those 40 years, I stopped living and working in Australia.
I still get annual reports, correspondence and regular updates. It’s had its ups and downs, but it’s never ever been a large amount of money to even worry about it.
I’m on the pension in NZ and I was wondering, I should find out if there is any chance of the superannuation fund helping me out here in any shape or form or is this a dead fish already?
We’ve dealt with a few questions in recent columns from people who have entitlements to pensions (or don’t) in other countries, and want to know how that affects their entitlement to NZ Super.
In your case, if you’re talking about a superannuation account to which contributions were made while you were working in Australia, the good news is that money you take from this will not offset your NZ Super entitlements. It’s more like KiwiSaver than the pension.
You should be able to withdraw the money now that you are over the age of 60.
Ana-Marie Lockyer, who’s chief executive of Pie Funds, said you should be able to go straight to your Australian super fund and apply.
Sometimes, if people haven’t been in touch with their super provider for a while, the money can be transferred to the Australian Tax Office and needs to be claimed from there. It doesn’t sound like that would be the case for you.
People who are not yet old enough to be able to access their Australian super directly can apply to have it transferred to a KiwiSaver fund in New Zealand, if they wish.
Lockyer said it’s also worth keeping an eye on any fees you might be charged for bringing the money to New Zealand, and what the exchange rate does to it.
My husband and I need to make a will, I have one adult child and he has three adult children and no children together. I need to be protected when we buy a home together, hope you can give me some advice on where to go to make a will.
It’s a great idea to make a will, particularly in situations where you have a blended family.
In theory you can make a will yourself (there are will kits you can get online) but if there’s any chance that it could be anything less than straightforward, I’d get some advice or help. You can use a lawyer or Public Trust or Footprint, and Sharesies is about to launch a wills product.
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