londonescapee

Hello,

I've tried to find an answer to our query on the search facility but it came up with so much stuff I gave up trawling through!

I have contracted out of the UK state pension since I first started working, which suits me fine as I am still young (ish! well in terms of retirement planning anyway).

My OH however has never set up a pension (despite my nagging - he still thinks that owning a house will suffice for his retirement plans :curse: whatever!). Now we are about to leave, he finally got around to trying to set up a stakeholder pension and to contract out as he wanted to have his NI contributions in a stakeholder pension for the time being whilst we educate ourselves a bit better on retirement soultions.

HMRC are now phasing out the contracting out element of state pensions, however, so the stakeholder pension he was planning on doing will no longer offer the contracting out element.

What happens with an NZ resident (he is also a British passport holder) who has been paying into the state pension but then moves back overseas? Can you transfer your contributions to NZ? Do you draw down whatever your contributions amount to once you reach retirement age? Do we just get some good financial advice from an IFA?

Sorry for the numpty-ish questions, the whole thing is so confusing and I am determined to get sorted now on pension planning so I don't have to worry about it when I am 65

sirplug

To be eligible to claim a 'full' pension, in the UK, you have to have been paying in for 35 years. To be eligible to claim a 'full' NZ pension, you have to have been paying in for 10 years.

If you come to NZ and start earning, contributing, once you reach retirement age (and have been paying in for more than 10 years) the NZ tax office will send you a form to begin claiming your 'full' pension. One of the questions will be 'Do you have a state pension elsewhere', in which you tick yes and they make the claim for that pension. This then goes toward what they pay you. You won't receive more than anyone else, just what you are entitled to.

Hope that helps.....

Robbie2010

You don't have to "pay in" to get it NZ super. You only have to live hear.

londonescapee

Thank you that is really helpful we were worried we would 'lose' all his state contributions over the last 11 years!

Out of interest, for the 35 year rule in the UK with regards state pension, does that have to be continual payments? For example, if we go to NZ for a few years then decide to come back to the UK permanently would HMRC take into account the NZ payments we make towards the 35 year rule or should we consider continuing to make NI payments whilst we are in NZ? Or is it just 35 years in total (which is quite hefty when you compare it to the NZ state pension ).

You never know where life will take you - so we're trying to cover all our bases!

rushmere

The number of years that you need to make UK NI contributions has changed, and it depends on your gender and age. Details here.

NakiMan

I believe there is a reciprocal agreement between the UK and NZ which allows time spent in each other's countries to count towards the others state pension

This means that if you are 65 but have not spent 10 years in NZ you should still qualify for NZ superannuation. (assuming you previously lived in the UK)

Take a look at http://www.superlifekiwisaver.co.nz/...rannuation.pdf

particularly the last sentence in the Eligibility paragraph

Genesis

You are indeed correct. One has to be here for 10 years. 5 of those 10 MUST be after you have reached 50 years. There is no need to have paid a cent in tax. The decade mentioned and that you are a resident or citizen are the only criteria.

NakiMan

As per my previous post, you don't even have to live here for 10 years.

If my understanding is correct, you could theoretically live in the UK all your life, arrive in NZ the day before your 65th birthday (as a permanent resident) and claim full NZ super the following day.

And that's the basic problem with it, its WAY to generous.

Robbie2010

If you lived in the UK 'till you were 65 you would receive the UK pension which would then be deducted from any entitlement you had to NZ super.

There would not be many that would be granted residency at age 65.

Stormer999

Married man one partner pension NZ superanuation = $8,945
Married man one partner pension UK fully paid up total state pension = $19,852. Don,t think the NZ purse will be taking any hit at all...
My NZ figures may be out of date but the sum will still be less than the UK state pension, so will cost NZ $0......

Robbie2010

NZ super ... Married , both qualify ... $561.24 (UK £152.30) Weekly

Single, living alone ... $373.56 (UK£95.25) Weekly


http://www.workandincome.govt.nz/man...ion_tables.htm

http://www.pensionsorter.co.uk/statepension.cfm#howm

NakiMan

There is obviously a wide variation in Pension entitlement in both UK and NZ, dependent on personal circumstances.

The only thing you can do is wait till you're 65 then check both and choose to claim whatever is the best deal. What you can't do, of course, is to claim both.

Just because you qualify for NZ Super, you do not have to claim it. You may get a better deal from the UK.

Best to remember though, that once the UK pension starts, it does not increase. It stays at the same rate for the rest of your life. And you can always swap at a later date.

Robbie2010

If you qualify for a UK pension NZ will insist you claim that first ... they will then top up any shortfall to equall NZ super.

NakiMan

Yeh, true, but only if you apply for NZ super. If you don't claim NZ Super, they dont have any say in it.

So if your UK pension is a better deal for you, just take that and don't even bother to claim NZ super.

Stormer999

Married man one partner pension UK fully paid up total state pension = £175.48.........honest