Pensions
Information updated as at 15-January-2024 | Source https://www.gov.uk/ and https://www.workandincome.govt.nz/ )
Are a few grey hairs sprouting? Wondering what eligibility, entitlements and strategies to be aware of approaching retirement? Our team have collated information on State Pension's in UK and NZ.
The state pension is income provided by the government if you have passed certain eligibility criteria. State Pensions essentially comes from a big communal pot that you, as a taxpayer, contribute into via your national insurance contributions through your working life.
State Pension UK?
From April 2024: the current new full state pension (currently £203.85 a week) will rise to £221.20 a week, or £11,502 a year. Between 10 and 35 qualifying years on your national insurance record, the amount of pension paid is calculated as a proportion of 35 years.
UK Pensions (Criteria and FAQ's)
Eligibility Criteria
Age
once you reach a certain age – currently 66 – and have passed certain eligibility criteria.
You’ll be able to claim the new State Pension if you’re:
a man born on or after 6 April 1951
a woman born on or after 6 April 1953
National Insurance Contributions
You’ll usually need at least 10 qualifying years on your National Insurance record to get any State Pension.
You’ll need 35 qualifying years to get the full new State Pension.
You’ll get a proportion of the new State Pension if you have between 10 and 35 qualifying years.
The government website lets you see how many years you have accumulated.
Claim State Pension abroad
You can claim State Pension abroad if you’ve paid enough UK National Insurance contributions to qualify.
UK has entered into an agreement with some countries to ensure if you are living abroad in these countries, the annual increases are protected. NZ and Canada are 2 specific exclusions from these annual increases.
Annual increases
The new State Pension increases each year by whichever is the highest:
Earnings – the average percentage growth in wages (in Great Britain)
Prices – the percentage growth in prices in the UK as measured by the Consumer Prices Index (CPI)2.5%
If you have a protected payment, it increases each year in line with the CPI.
The new State Pension has increased by 10.1% this year, in line with CPI.
State Pension NZ?
Currently, to get NZ Super or Veteran's Pension, you must have lived in NZ for at least 10 years since you turned 20. The 10 or more years must include 5 years since you turned 50. From July 2024, the number of years you must have lived in NZ since you turned 20 will gradually increase from 10 years to 20 years. The amount of payment varies on your tax code and living situation (between $537.16 to $992.74 per fortnight)
NZ Pension (Criteria and FAQ's)
Criteria
You may qualify for NZ Super if you are 65 and over, and:
either:
are a New Zealand citizen
are a permanent resident, or
hold a residence class visa
are ordinarily resident in NZ, the Cook Islands, Niue or Tokelau when you apply, and
have lived in NZ for at least 10 years since you turned 20. The 10 or more years must include 5 years since you turned 50. If you haven't lived in NZ for at least 10 years, you may be able to use other countries to meet this residence criteria.
Being ordinarily resident when you apply
Your income
You can still be working when you apply for NZ Super. It doesn't depend on your income or your assets. However any income you do earn can affect other payments you get from us.
If you get an overseas pension, you can still get NZ Super. However this could affect your NZ Super payment.