A.         I will answer your question about KiwiSaver first, as it is the more straightforward question. 

Once you reach the age of 65 and have been in KiwiSaver for at least 5 years, you will be eligible to cash up your account, no matter where you are living. You will need to apply to your fund manager by filling out the standard form they provide for people who have reached the age of eligibility. It may take a few weeks for your withdrawal request to be processed, but once your KiwiSaver funds have been paid out to you, you are free to spend them as you wish either here or overseas. 

If someone leaves New Zealand permanently before the age of 65 they can apply to cash up their KiwiSaver after one year has passed, but they forfeit their Member Tax Credits. For those who have been contributing members since 2007, this may amount to $4690 of their current balance, increasing by up to $521 each year. But once you reach the age of eligibility this restriction no longer applies. 

The rules around KiwiSaver are simple compared with New Zealand superannuation, as far as living overseas is concerned. According to the Work & Income website: “If you receive New Zealand Superannuation or the Veteran’s Pension, you can go anywhere in the world and you may still be able to take up to 100 per cent of your gross payment with you. What you’ll get depends on where you go to and how long you’ve resided in New Zealand.”

New Zealand has reciprocal social security arrangements with several countries, including Australia, the United Kingdom, Canada and the Netherlands. Anyone who has lived overseas and might qualify for an overseas pension, or who plans to live overseas once they retire, should find out their entitlements well in advance. Talk to the International Services team at Work & Income. 

Even going overseas on holiday could affect your NZ Super. Work & Income would like to know the overseas travel plans of anyone receiving a benefit or NZ Super. Generally holidays of less than 26 weeks will not affect NZ Super, but if you are delayed overseas and stay away for more than 26 weeks without letting them know, they may ask for your NZ Super to be repaid. 

With increasing longevity people may spend many years in retirement, so careful planning is very important. Who knows what superannuation entitlements you will have in 20 or 30 years’ time? Keep up with Government social welfare policies in New Zealand so that you are well informed and can adapt to any changes.