4. BARBARA STEWART (NZ First) Link to this
to the Minister for Social Development and Employment
What advice, if any, has he received on how New Zealand - based superannuitants can supplement their incomes to improve their standard of living?
Hon Dr MICHAEL CULLEN (Leader of the House) Link to this
In an extreme version they could be the Leader of the Opposition, but more generally, as New Zealand superannuation is not income and asset-tested there is no barrier to earning other income. KiwiSaver, of course, will help provide higher levels of retirement income. We are also looking at ways to enhance opportunities for older people who want to work to be able to work.
Why does the Retirement Commissioner advocate improving retirement income through savings or work, when those who take this advice but do so offshore are penalised by having these savings deducted from their New Zealand superannuation?
Hon Dr MICHAEL CULLEN Link to this
People who make private provision for retirement by savings who are offshore are not penalised by deductions from their New Zealand superannuation. They receive the full rate of New Zealand superannuation on top of overseas private pensions or overseas savings. The direct deduction provisions apply to people with public or State pensions from another country.
Steve ChadwickHon Dr MICHAEL CULLEN Link to this
It is quite difficult to make that comparison, because nearly all countries have some form of public pension provision based on entitlement on a proportionate basis—in other words, related to a number of years working as a proportion of a base, say, 40 or 45 years—whereas New Zealand superannuation is based on a relatively short residency requirement alone, of 10 years. That does create some difficulty in comparing portability arrangements.
Does the Government plan to review the portability of foreign pensions for senior citizens who may be eligible for payments in addition to New Zealand superannuation; if not, why not?
Hon Dr MICHAEL CULLEN Link to this
The confidence and supply agreement with New Zealand First contains a commitment to investigate ways to improve options for senior citizens who may be eligible for foreign pensions as well as New Zealand superannuation. The Minister is working on those matters in conjunction with other Ministers, and that work is progressing very well.