Retiring across the Tasman

Q:

Q: I heard there are some changes in the pipeline designed to make retiring across the Tasman easier? What’s the story there? Would the time I worked in NZ entitle me to a part-NZ pension or would it contribute towards my Australian age pension?

I worked in NZ between Feb 1974 and June 1978 and obtained permanent residency. I’m now 61 and approaching retirement. If I decide to settle in NZ am I able to receive a pension or transfer my Australian super to a NZ account?

Our expert is Greg Meyers Certified Financial Planner and principal of Royal Cornell Financial Services

A: Australia has a Social Security Agreement with New Zealand that generally allows you to combine your periods of Australian and New Zealand residence to meet the qualifying period for a pension.

Where you claim your pension and how much you get depends on where you are living when you claim.

However, generally if you qualify for both Australian and NZ pensions, the total amount you receive would equal the amount you would receive if you lived your life in one country (no double dipping).

One of the proposals in the Australian government’s recent budget is a scheme to allow the transfer of superannuation to approved funds in NZ.

A date for the introduction of the scheme has not yet been decided. In the mean time, if you are retired and therefore eligible to withdraw your Australian super, you could cash it in and send the money to NZ outside of superannuation, although the tax effect may not be as favourable.

Where to find out more

You can obtain more information at Centrelink’s International Services www.centrelink.gov.au and at Department of Families,
Housing, Community Services and Indigenous Affairs at www.fahcsia.gov.au

Or contact Royal Cornell Financial Services at www.royalcornell.com.au.