BlackCrossInResidence

Hi ,

I'm moving over to NZ on a parents visa shortly. A year after I move I will qualify for the UK state pension which, as I understand it, will then be frozen at the initial amount and never increase.

Any idea how long before I can qualify for the NZ state pension instead of drawing the UK pension?

Thanks.

Genesis

Apparently you have to be in NZ 10 years I beieve before you qualify..5 of those years must be spent here when you are over 50. That is what the rules were a while back I think from memory, but things can change eh? The single allowance was something like $20k per annum and the married amount was about $29k.

The NZ pension dept claws back from the Uk what you would have got there..you can't have 'em both!!

BlackCrossInResidence

Thanks for the reply but thought I'd clarify it by ringing WINS:

"There is a reciprocal agreement with the UK and you can claim NZ super immediately you're 65, no matter how long you've been here (providing you qualify for the UK pension)."

NZ super is a bit more than UK's pension - single living alone for instance would be $339.00 (£183.25) as against around £105 in the UK.

Grayling

Isn't it means tested though?

Genesis

Well that is diffo from what I gleaned. My apologies for crap info. Thanks for the update. And no, it is not means tested to my knowledge. They don't know the meaning of it over here.

Grayling

It is means tested for spouses....my mistake

http://www.workandincome.govt.nz/ind...factsheet.html

Genesis

Well that is diffo from what I gleaned. My apologies for crap info. Thanks for the update. And no, it is not means tested to my knowledge. They don't know the meaning of it over here.

chocolate cake

No, NZ Penision, it's not means tested but it's taxed from $0 whereas in UK the pensioner will have is personal tax free allowance of course. That's 9,940GBP in the 2011-12 tax year.

That said that's the same whether you took the UK pension, or exchanged it for NZ one.

Freezing the UK pension at the initial amount is though a tad unfair, I don't know if it's the same if you'd emigrate to say Spain, Portugal or France.

BEVS

NZ Super - Who can get it.

Broadbase explain how it works in a clear cut way I feel

Link to Broadbase state pension thingy

Chris-Napier

I have been in NZ since April 2007 and in January 2008 I qualified for my UK state pension. Yes, you are right, the amount is frozen so I get the same amount for the rest of my life. Was told that as I had emigrated I did not qualify for any increase - even though I had paid my taxes/full stamp all my working life! One of the replies say the NZ single allowance is about $20K per year and that amount will be taken from the UK pension I get, or have I misunderstood? In that case what is the point in trying to claim it here after the qualifying period! My daughter and I invested $750K in total in a new business here when we arrived (we are here on LTBV and could only get it if we went through a franchise). Long story but looking back were pretty green in this long term investment plan. What started as $200K initial fitout price, that rose to $475k and was only told this a few weeks before the business opened so we had to get a bank loan. (the franchise who we thought were supporting us didn't want to know). We have employed lots of kiwis over this period but then the recession hit and we have gone downhill ever since. Had to make many cutbacks to keep our heads above water and are at a point now that we have to sell the business (not easy at the present climate) at a huge loss to pay the bank some of the loan and overdraft we owe. If this doesn't happen, my house will be taken by the bank! So........ all I will have is my UK pension which is approx $646 a month. So I will have to get a job (difficult at my age) to actually survive and pay the bank back ( the same applies for my daughter). So....if I do not qualify for any NZ pension as such, what can I do? Sorry if I have wondered off track a bit but it is very worrying for my future. No I can't and wouldn't want to go back to UK as there is nothing there for me. If the worst happened and I lost my house and had very little money - how do I stand?

BlackCrossInResidence

Chris, truly sorry to hear of your plight!

Regarding the pension why not ring WINS and find out whether you qualify for the NZ pension (from what they told me you ought to) and any other benefits if the worst comes to the worst?

If you did return to the UK your pension would be unfrozen, by the way.

Good Luck.

Chris-Napier

Thanks for your reply, appreciated! Just couldn't go back to UK as everything I have in the world is here! My daughter and two teenage granddaughters came here at the same time. If the nightmare happens I guess I would have to go to WINS and just see what I could apply for.

BEVS

Wandering off track is fine mate. Most of what this forum is about is support. Perhaps start your own topic/thread about this so more people will see it. NOt everyone drops into every topic/

I'm very, very sorry to read about what's happened Chris-Napier. It's the one thing we look for as we get older isn't it. Financial security.

With regard to the pension thing . Could you have chosen between taking an NZ pension , with NZ clawing back the money from the UK, or the UK pension which is frozen .


Bit confused about all that. I'd qualify for either .

Chris-Napier

Thanks!!! Guess I should share this all with a new thread. I think when I saw the pension issue it brought out the 'can of worms' with everything that is happening at the moment. We just wanted a better life and never wanted to make heaps of money, just to live happily with some security at the end of it all and we love NZ. I now work more hours than I ever did in UK because of the business financial problem but I expect there are others out there in the same boat. We are trying to be positive and just plod on at the moment and hope things will change for the better. But I will certainly find out about the NZ pension and my entitlements.

Genesis

Hi Chris, sorry to hear of your plight. On a smaller scale we lost a huge amount of cash (it was huge to us anyway) to Hanover Finance. So I have an idea of your frustration. I am getting on for the wrong side of 50 so every penny counts eh? To take an $80k hit at this time in your life (or any other to come to think of it!) is hard.