superannuation (NZ) not pension (UK)

In New Zealand, what the British know as Pension Schemes are called Superannuation Schemes! There are a number of employers in NZ, usually larger employers, who will offer some form of company superannuation scheme just like an employer scheme within the UK that you may have been part of. They are required, by law, to offer all employees access to a KiwiSaver Plan and if you, the employee, joining such a KiwiSaver scheme they must pay a minimum of 3% of your salary into the plan - as must you!

 

transferring

Many UK Company and Personal Pensions can be transferred into NZ into what are known as QROPS schemes.  The UK HMRC set the rules under which such transfers are to be made and what tax issues there may be for you to understand (with our expertise) and transferring must be a viable option to consider. In addition, after you have been in NZ for 4 years the NZ IRD will look to tax your pension benefits held off-shore.  So, whilst you have a 4 year window to consider transferring you need to be aware that transfers can take anywhere from 3 to 9 months to complete so do not leave it too late. In simple terms, when you see NZ as your long term home (i.e. to at least age 57) then that is the time to look at transferring benefits. 

 

 

 

retirement planning

Motivating our clients to undertake any Retirement Planning processes is one of our greatest challenges – simply remember that, whether you like it or not, THE CLOCK IS TICKING toward retirement and putting in place some financial plans to allow you to retire when you want with the finances you want/need means planning. The SOONER THE BETTER!

 

You may have transferred your UK pension benefits and be accumulating either/both KiwiSaver or company superannuation benefits but, are they going to get you to where you want to be at the age you wish to retire? 

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If you are an existing client of BritsNZ Ltd, on the financial side of things, we offer a FREE of charge retirement planning review service where we look at what age you want to retire, look at what you want to do in retirement, look at your cash needs and your income needs and then look at how close you are (currently) to achieving your goals.  Our calculations are based on conservative estimates of growth and take account of any transferred benefits, KiwiSaver benefits and NZ State pension benefits. The aim is to see if you will hit the fund target you need to meet your retirement plans and allow you to make some decisions on planning strategy from a position of knowledge.

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If you are not already a client of BritsNZ Ltd then we will be pleased to quote you a fee for creating a retirement plan report and making recommendations, as/if appropriate.  Simply contact us at info@britsnz.co.nz

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kiwisaver

A Kiwisaver pension scheme is a form of personal pension plan which employers must offer to all new employees, albeit there is no compulsion to join. If you join (and you should do so as you will be getting 'free' money from both your employer and the Government) then you can pay in at the following rates:​

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·       3% (minimum); 4% ; 6%; 8% or 10%

·       Your employer must pay a minimum rate of 3%

·       Member Tax Credits are paid into your Kiwisaver by the Government, at the rate of 50c for every dollar you contribute up to a maximum of $521.43 per year. 

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We know that the first year in NZ can be expensive but would recommend that you start saving into Kiwisaver as soon as you have Residency. If you know, on arrival into NZ, that you will be eligible for Residency you may wish to negotiate with your employer to pay your Kiwisaver money into a holding account until it can be paid into your Kiwisaver plan.

Once you are settled in NZ you can then assess whether you wish to increase your contribution level. ​

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NOTE: Kiwisaver can be accessed at various times other than retirement but do bear in mind the (almost) sole focus of this type of retirement savings plan is FOR retirement and hence you should be aiming to save until you can access the funds, which is NZ State Retirement Age – this is currently age 65 for both men and women.  

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There are three ways in which you can select a Kiwisaver plan:

·       Allow the NZ IRD to decide by having them place you randomly into one of the default schemes.

·       You employer will point you to a preferred provider.

·       You choose your own Kiwisaver provider.

 

You ALWAYS have a right to choose your own provider and BritsNZ Ltd recommends that you use the Booster Kiwisaver Scheme.  We use this scheme ourselves; it is a Kiwi company; it has Kiwisaver friendly fees; it has a range of investment funds at differing levels of investment risk into which you can invest (either across a range or into just one fund). There is no guarantee that the Booster fund will outperform any/all other Kiwisaver schemes but they have a complete focus on the Kiwisaver market and this is their core business. For further details on this Kiwisaver plan please email mike@britsnz.co.nz

 

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UK & NZ state pensions

As a New Zealand Resident you will be entitled to take a FULL NZ State Superannuation income from age 65.  All previous years of working in the UK are counted toward maximising your NZ State entitlement and effectively the two Governments liaise to sort out what money goes where but from your perspective you simply get your superannuation income paid via the PAYE system on a fortnightly basis.

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If you are coming from a country other than the UK then this general rule may apply to you (but each country is different so care is needed and advice should be sought………You may become entitled to a full NZ State superannuation income at age 65 by working in NZ for 10 years with at least 5 of those being after age 55.

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