Source: Radio New Zealand
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With all the talk about the country not being able to support the pension scheme I am at a loss as to why pensions are paid out to people who continue to work fulltime after they turn 65. I stopped work because of ill health but would otherwise have happily worked another 10 years. I would not have expected a pension and I have many working friends who take it simply because it is given to them, but don’t need it. Am I missing something here?
I don’t think so. While there is no shortage of people who argue that they are entitled to it no matter what, I think there is a growing number who question the fairness of people on very high incomes being paid NZ Super.
Last year, I reported on the fact that more than 9000 people aged over 65 earn more than $200,000 and are eligible to claim NZ Super, too.
While they would pay tax on their pension, and some of it would go back to the government that way, the retirement commissioner said it was fair to question the fairness of it.
Some people may be working because they have to – I know some people use the years when they might be getting the pension and a salary as an opportunity to shore up their savings so they can afford to retire.
It might be less desirable to reduce their entitlement. But I personally think it would serve us all to be more willing to at least have the conversation.
Sir Ian Taylor has been promoting Share My Super, an organisation that allows pensioners to donate part or all of it to charity, if they do not need the money.
Can a KiwiSaver account be used to fund a first home outside New Zealand?
If you are planning to leave New Zealand to go and live in another country, then probably – unless you’re going to Australia.
Once people have been out of New Zealand for more than a year, they can apply to withdraw all their KiwiSaver money, apart from the government contribution, by saying they have permanently emigrated. You could then use it to buy a house or for whatever purpose you liked.
If you’re moving to Australia, it’s more tricky. You can only move your KiwiSaver to an Australian superannuation savings account. There isn’t the same ability to withdraw for a first home there, although there is a “first home super saver scheme” that allows people to withdraw voluntary contributions to help buy their first home.
From what I understand, not all Australian super schemes offer this and you can only use $15,000 of your KiwiSaver money in this way.
If you’re staying in New Zealand then you can’t use the money to buy a house anywhere else because you need to be planning to live in it.
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