Take-off date set for Golden Years OE

From January 2010, superannuitants and veterans pensioners will be able to take their entitlement with them while travelling overseas.

Paula Bennett, Minister for Social Development and Employment, has confirmed 5 January 2010 as the date the Social Assistance (Payment of Superannuation and Veteran's Pension Overseas) Amendment Act comes into force.

"We want people to have choice about how they spend their retirement - and this Act gives them freedom to do just that."

A superannuitant or veterans pensioner will be able to receive up to the full rate of their entitlement while travelling or living abroad, depending on how long they've resided in New Zealand between the ages of 20 and 65 years.

Previously, they only received 50 percent of their payments while living overseas.

The new law also means New Zealand Superannuation and Veteran's Pensions can be paid to people who are travelling to more than one country. If superannuitants or veterans pensioners want to move to a country that isn't covered by a social security agreement or the special arrangement with Pacific countries, they may be able to take up to 100 percent of the gross rate of their pension with them.  People can apply from 5 January 2010.

"We know retirees are "younger" than ever. For many, retirement affords them opportunities they might not have had during their working years.  We've had great feedback from people that this is the break they've been waiting for," Paula Bennett says.

Anyone who has spent time in the armed forces overseas, trained in another country, worked in an embassy or volunteered overseas won't be penalised. They'll be counted as living in New Zealand under the payment formula. 

The changes do not affect people living in some Pacific countries and countries that New Zealand has reciprocal agreements with. These include: Australia, Canada, Greece, the Netherlands, Jersey and Guernsey, Denmark, Ireland and the United Kingdom.

If you want to know if the changes will effect you, please go to: www.seniors.msd.govt.nz