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Can I Afford To Emigrate RNUK - RNNZ

Can I Afford To Emigrate RNUK - RNNZ

Old Feb 21st 2014, 11:57 am
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Default Can I Afford To Emigrate RNUK - RNNZ

Greetings all for what is my first, of hopefully many posts. I have recently been approachd by the Royal New Zealand Navy to transfer across from the Royal Navy. They have made me an offer of service and along with my current RN pension, I am seriously considering the benefits. The facts and figures are:

1. My current RN pension is NZ$38,568 per year. I have a personal Tax Free Allowance of NZ$16,150 and as it will be taxed in the UK at 24% this equates to NZ$33,187 net per year.

2. My RNZN offer is for NZ£90,000 per annum, which I believe will be taxed at 19.5% for the first NZ$38,000 and then 33% for the remainder. This equates to a net income of NZ$65,430 per annum.

3. Add my RN pension and this equates to a nwt income of NZ$98,617 per year.

There is only myself and my wife, we are both non drinkers and non smokers although we do enjoy eating out occasionally. We do not own our own home in the UK but do have savings of NZ$116,000 which we would need to use as a deposit for a house.

The questions I have are:

1. Is NZ$98,617 a reasonable figure to survive on for a couple? We have a decent lifestyle in the UK and would not wish to compromise what we already have for a reduction. We would be looking to reside in Auckland.

2. My wife presently earns NZ$20,000 per annum as a Charity Fundraiser and Administrator. Is she likely to be able to find somethinig similar in NZ?

3. Is it better to ship all our household belongings, car, etc or sell them here and buy locally.

I am grateful for the sage advice you provide.
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Old Feb 21st 2014, 5:05 pm
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Default Re: Can I Afford To Emigrate

Originally Posted by Sigma.501
We have a decent lifestyle in the UK and would not wish to compromise what we already have for a reduction.

So much contained in so few words.

Of course there will be compromises. It's not the same country. Much will be familiar, but much won't. But it's difficult to tell where those compromises might be. And there will be gains, because some things are far cheaper and/or easier to do in New Zealand than in the UK e.g. fly fishing, visiting lovely beaches and so on.

As an example, someone recently posted about clothes shopping, saying 'Marks and Spencers prices, Tesco quality'. If nice shoes and clothes are important to your decent lifestyle, then you may find yourself paying a helluva lot more. If you like the occasional trip to Spain or France, then you won't be doing too much of that from New Zealand. If you like the latest electronics, you will find yourself paying more. If you like going to a lot of events and cultural attractions, you may find yourself bored quite quickly. And the list could go on for pages...

Incidentally, on my last visit there, generally speaking, with about half a dozen restaurant visits, I found the eating/dining out to be a bit below par. The best meals I had were freshly-caught fish, home-grown and homecooked, whether on the BBQ or not. A few times I was taken out to dinner at supposedly the best place in town for this or that, it was invariably disappointing. The Thai I had in Wellington was worse than a Sainbury's pre-prepared takeout, the meal in Nelson somewhere on a bay with a view over the sea... I couldn't finish it.

This post, which I find really entertaining and illuminative, is how a Brit saw the UK after being in New Zealand for a while and then returning, visiting Scotland, seeing the UK through fresh eyes again. Note how palatial the supermarkets seemed, for instance.

'Lifestyle' is such a complex idea, such a multidimensional, highly personal and individual concept that encompasses so many aspects of your life, all contained in such a little word. New Zealand: tiny population, miles away from anywhere. Anything imported costs more, you don't have the range of goods and services that you do in the UK at the same prices. So, there will be compromises. You'll be paying to see your GP, for instance. The question is whether what New Zealand has to offer — generally better weather, all the outdoors stuff — outweighs the areas where you will have to make changes or sacrifice some things that you may now take for granted.
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Old Feb 21st 2014, 5:24 pm
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Default Re: Can I Afford To Emigrate

Finance-wise, I would say yes, that is a decent sum and as long as you don't live in Auckland or Wellington, you should be able to have a decent (not extravagant) lifestyle. If you want to live in auckland - maybe its not enough ... check out the housing market - very expensive - lots of threads on here about that too.
What drives you to come here?
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Old Feb 21st 2014, 5:40 pm
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Default Re: Can I Afford To Emigrate

I'd echo the other posts. That's not a bad amount to live on assuming you are not in Auckland or Wellington. As a mortgage deposit you'd still have quite a mortgage if you want to buy anything nice even outside the main centres.
But it's not all about the money here. It's about what it is like to live here day-to-day.
It is lovely here, right now the sun is streaming in and it's been fantastic since we came back from a very wet UK a couple of weeks ago. I'm off for a run along the coast shortly and then I'll meet my wife for afternoon tea later. Of course that's after she has finished working on a Saturday at her second job that helps keep our heads above water. And I say afternoon tea but out here no-one stays open that long, especially on a Saturday in the boonies.
Someone mentioned Tesco quality and M&S prices. I dream of Tesco quality. Actually I just dream of Tesco full stop.
It comes down to whether the subtle differences here are something you can easily embrace or whether they grind you down. I like it here but I have come to terms with the fact that I love it in the UK. So I cope with the differences, grumble a bit and then get on with it for the time being. Some who emigrate don't seem to mind the differences, others find them and the distance from where they have spent their whole lives too much to bear. I think it is true to say you won't know until you try.
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Old Feb 21st 2014, 7:04 pm
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Default Re: Can I Afford To Emigrate

Sigma 501. I worry about your tax assessment as it is not correct. You will be assessed for tax in New Zealand based on your worldwide gross income. This means that your UK pension will be taxed in New Zealand as if you earnt it in New Zealand. Hence, you should add your UK gross pension to your New Zealand salary and calculate the tax you should pay.
As you will have paid some tax in UK, New Zealand IRD (Inland Revenue Department) will credit that amount against the New Zealand tax assessment, and the you will pay the remaining tax in New Zealand.
There is no personal allowance in the tax system in New Zealand.
So, you earn $128,568 in total, then work out what the NZ tax will be, then deduct the UK tax you would pay in UK.
You can opt to pay all of your income tax in New Zealand, for which purpose, you can obtain a form from IRD and end up receiving your UK pension in total, and pay all of the tax in NZ. Whichever way you do this, you will always pay the same amount of tax in total.
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Old Feb 21st 2014, 7:33 pm
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Default Re: Can I Afford To Emigrate

Depends where in the country you would be based.

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Old Feb 21st 2014, 7:50 pm
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Default Re: Can I Afford To Emigrate

If they approached you they may even have a relocation allowance. In which case, ship it all over at their expense and put the money you save in the bank to ship it all back if you decide to return home. Think of it as an adventure rather than a permanent move.
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