New Zealand Superannuation Rates 2024 and 2025
What is New Zealand Superannuation?
New Zealand Superannuation (NZ Super) is a government-provided pension scheme aimed at ensuring that retirees have a stable and adequate income to support their living standards. Available to all citizens and residents aged 65 and over, NZ Super is funded by current taxpayers and is a vital part of the country's social welfare system.
How to Apply for NZ Super
You can start your application for NZ Superannuation 12 weeks before turning 65, or anytime thereafter if you're already 65. To begin, contact Work and Income to get a client number if you don't already have one. Next, register or log into MyMSD to complete your application. Be prepared with your banking information and details about you and your partner if you weren’t born in New Zealand. After submitting your application, follow any additional instructions provided, such as supplying supporting documents. Once approved, you’ll receive payments every two weeks directly to your bank account.
Eligibility Criteria for NZ Super
To qualify for NZ Super, you must be 65 years or older and meet the residency requirements. You need to be a New Zealand citizen, a permanent resident, or hold a residence-class visa. Additionally, you must have lived in New Zealand for at least ten years since turning 20, with at least five of those years after turning 50. This residency requirement can also be met using time spent in the Cook Islands, Niue, or Tokelau.
Your Partner and NZ Super
The amount of NZ Superannuation you receive can vary based on your relationship status and living arrangements. When applying, it’s essential to inform Work and Income if you are married, in a civil union, or in a de facto relationship. Your payment will differ depending on whether you are single and living alone, single and sharing with others, or in a relationship where one or both partners qualify for NZ Super.
NZ Superannuation Rates for 2024 and 2025
New Zealand Superannuation is paid fortnightly on a Tuesday. The amount you receive depends on your living situation and your tax code. For the period from 1 April 2024 to 31 March 2025, the rates are as follows:
Single, living alone: $1,038.94 per fortnight (up from $992.74)
Single, sharing accommodation: $959.02 per fortnight (up from $916.36)
Couples: $799.18 per fortnight per person (up from $763.64)
These increases are based on a Consumer Price Index rise of 4.66%, compared to a 7.2% increase the previous year.
Comparison of NZ Super Rates in 2023
To provide context, here are the rates for the period from 1 April 2023 to 31 March 2024:
Single, living alone: $992.74 per fortnight
Single, sharing accommodation: $916.36 per fortnight
Couples: $763.64 per fortnight per person
Taxation on NZ Super
NZ Superannuation is considered taxable income. If NZ Super is your only source of income, your tax code will likely be ‘M’. However, your tax obligations may vary if you have additional income sources.
NZ Super vs. KiwiSaver
While both NZ Super and KiwiSaver aim to provide financial support during retirement, they are different schemes. NZ Super is a government-funded pension available to all eligible seniors, whereas KiwiSaver is a voluntary retirement scheme that employees and the self-employed can contribute to throughout their working life. KiwiSaver serves as a supplementary retirement plan to enhance retirement income alongside NZ Super.
Working and Receiving NZ Super
One of the benefits of NZ Super is that there are no income or asset limits that affect your eligibility. This means you can continue to receive your pension payments even if you work full-time or part-time after turning 65.
SuperGold Card and Additional Benefits
Upon approval for NZ Super, you will automatically receive a SuperGold Card. This card grants access to various discounts and offers from businesses across New Zealand. If you have served in the armed forces during wartime or other emergency situations, you might be eligible for a Veteran’s Pension, which could provide better benefits than NZ Super.
Changes to NZ Superannuation in 2024
In 2024, NZ Superannuation payments increased by 4.66%, reflecting changes in the Consumer Price Index. Despite this adjustment, the rise in benefits may not fully keep pace with the rapidly increasing cost of living, affecting many New Zealanders who rely on these payments.
Key Steps to Ensure You Receive All Entitlements
To make the most of your NZ Super, ensure that you promptly report any changes in your living situation or personal details to Work and Income. This includes informing them if you plan to live overseas or if there are any changes in your partner's status.
If you want to know more about NZ Superannuation and how it can fit into a wider retirement plan suitable for your personal situation, follow the link below to our Retirement Planning page where you can take our quiz. Our quiz only takes 5 minutes to complete, and once you have finished you can book in for a call with Adam to access your retirement needs.
Compound Wealth are based in Mount Maunganui, Tauranga and offer KiwiSaver, Investment & Retirement Financial Advice to clients all over New Zealand.