Sunday, November 7, 2010

Retirement in New Zealand

There is actually no compulsory retirement age in NZ so people can keep working for as long as they choose to (or as long as they can keep their job!) and if you have a look around Unitec you'll see a few staff members around who are in fact older than 65.   

At 65 people get financial assistance from the government (a pension). They get what is called '65' at 65. This means they get 65% of the average income, so my parents get about $490 a week from the government. (It doesn't matter how much money people have - even very wealthy people get pensions as they have paid taxes all their lives so they deserve to get it.) Mind you, with people now living considerably longer and people having fewer children, pensions may not be available in the future, so the government is warning everyone to save for their retirement now and has set up a scheme called "Kiwi Saver," where you put about 2% of your annual income aside and your employer and the government can contribute to it. Everybody who joins it instantly gets $1 000 to start them saving.

Anyway, most younger people don't even want to think about their retirement but if any of you are thinking of getting PR (permanent residence) in NZ, you should look into joining Kiwi Saver when you start work.  I don't want you to be old and broke! :)

Carolyn

2 comments:

  1. Old people in NZ are lucky to receive such money.

    ReplyDelete
  2. hello Carolyn

    In my country, our pension system much as same as the "kiwi saver".My parents put about 8% of their income aside per month,and then their companies give 20% as supplement.when they are retired, the can get money constantly.

    Yi

    ReplyDelete