New Zealand Pension Increase 2024 : Who is Eligible for Increased Pension Amount ? Know Payment Dates

New Zealand’s pension system for seniors aged 65 and above will be undergoing changes in 2024, impacting eligibility, payment amounts, and distribution schedules. The 2024 pension increase in New Zealand includes an expected increase in pension rates to address rising inflation, with details on specific amounts and eligibility criteria explored in this article. Additionally, residence criteria for the Superannuation and Veteran’s Pension will gradually increase, aiming for fair access to these benefits. Read  entire article for all these changes, providing crucial information for retirees and ensuring an understanding of their financial security in the coming year.

New Zealand Pension Increase 2024

New Zealand pension system, which is recognized as one of the most efficient in the world, comprises of a pension system in three-pillar structure. These are:

  1. New Zealand Superannuation (NZ Super): NZ Super is a non-contributory state pension available to eligible individuals. Every year, the Consumer Price Index and its correlation with the average weekly net-of-tax salaries are used to modify the pension rate.

Additional support includes the Winter Energy Payment for heating costs during winter and the Accommodation Supplement for housing expenses.

NZ Old Age Pension 2024: What is Expected NZ Pension Increase ?

New Zealand Pension Increase 2024

The NZ Super Payment is adjusted annually by the government, considering the cost of living and average wages. For couples who both qualify, the after-tax rate is based on 66% of the average ordinary-time wage. For single individuals, it’s approximately 40% Pension Increase 2024 in New Zealand will also see major changes in NZ Super as it will affect all the categories of person based on circumstances.

  1. Occupational Superannuation Schemes: They are employer-sponsored schemes and are not government-subsidized through the tax system. KiwiSaver, a voluntary funded part of the pension system, complements NZ Super.
  2. Private Pension Savings: Complementing the first two pillars, private pension savings play a role in securing retirement income. It is provided by the companies for whom the person works, and Pension Increase 2024 in New Zealand may also see the companies increasing the fund amount.

Other than these pillars, there is also Veteran’s Pension for those who have served in New Zealand’s Armed Forces, and they might be eligible for the Veteran’s Pension instead of NZ Super.

Overall, the pension increase 2024 in New Zealand will be dependent on the percentage increase of cost-of-living. It will affect all the types of categories as the expected 1.79% increase in cost-of-living will further determine the categories and their expenses.

New Zealand Pension Increase 2024 : Who is Eligible for Increase Amount ? Know Payment Dates

Pension Increase Amounts for all Categories

The amount is generally paid online and fortnightly (14 days) on every second and fourth Tuesday of each month. The amount will be deposited in the registered bank account. The amount will vary as per the categories of people after Pension Increase 2024 in New Zealand:

Living Situation Weekly Payment Rate (Single) Weekly Payment Rate (Couples) Tax Code
Living Alone NZD 437.55 NZD 669.65 Main Income
Sharing Accommodation NZD 411.20 NZD 634.00 Secondary Income
Non-Qualified Partner NZD 411.20 NZD 634.00 Special Tax Code (Tailored)

Overview of Pension Increase 2024 in New Zealand

Name Pension Increase 2024 in New Zealand
Country of Origin New Zealand
Regulating body / Department Work and Income
Year 2024
Category Government Aid – Finance
Objective Improve pension amount for the retirees with rising inflation
Applicable persons Old age people

Retirees

Age Limit 65+ years
Amount (per week) $496.36 (approximate value. It may vary due to categories and tax codes.)
Dates in February and April 13 February 2024

27 February 2024

12 April 2024

26 April 2024

Website https://www.workandincome.govt.nz/

 

New Zealand Pension Increase 2024 Payment Dates

Month Payment Dates for that month
February 13 February 2024

27 February 2024

April 12 April 2024

26 April 2024

April 9 April2024

23 April 2024

May 7 May 2024

21 May 2024

June 4 June 2024

18 June 2024

July 2July2024

16 July 2024

30 July 2024

August 13 August 2024

27 August 2024

September 10 September 2024

24 September 2024

October 8 October 2024

22 October 2024

November 5 November 2024

19 November 2024

December 3December2024

17 December 2024

31 December 2024

 

Who is Eligible For Pension Increase ?

  1. Age: Person must be 65 years of age or older when applying.
  2. Residency: Criteria has been changed slightly for Pension Increase 2024 in New Zealand in case of residency which must followed:
  • Person must be a New Zealand citizen or permanent resident.
  • Has lived in New Zealand for a specific period, meeting the minimum residency requirements. This is where the changes in Pension Increase 2024 in New Zealand come into effect:
    • Before July 1, 2024: The necessary residency condition was ten years from the date of turning twenty, with a minimum of five years in New Zealand after turning fifty.
    • From July 1, 2024, on wards: To meet the 20-year threshold by July 2042, the minimum residency requirement will progressively rise over the next 18 years. In addition, after turning fifty, five years must still be spent in New Zealand.
  • For an individual who has not resided in New Zealand for the whole qualifying period, time spent in the Cook Islands, Niue, or Tokelau may fulfil the specified residency requirements.

How to apply and check status?

The Ministry of Social Development (MSD) website can be accessed by anyone interested in applying for or checking on Pension Increase 2024 in New Zealand by logging into their MyMSD portal using their IRD number and a RealMe verified account. In addition, they can give MSD a call at 0800 552 002 or visit their local MSD service facility.

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