Support for pension move

Investment advisers are unfazed by a suggestion that migrants be kept waiting longer for a New Zealand pension.

Wednesday, October 24th 2018, 5:59AM

A new member’s bill proposed by NZ First MP Mark Patterson would raise the minimum residency for the pension from 10 years to 20.

The New Zealand Superannuation and Retirement Income (Fair Residency) Amendment Bill was drawn from the ballot on Thursday.

In 2016, Retirement Commissioner  Diane Maxwell recommended that residency for super increase to 25 years.

There are concerns that such a move could leave some people under-resourced in retirement.

But adviser Stephen O’Connor said it was unlikely to be an issue for his clients. “I don’t have many immigrants as clients and the impact on them is negligible to nil. Most are well heled anyway and not reliant on NZ Super. They have their own wherewithal in terms of retirement provision.”

Another adviser, Brent Sheather, was similarly unconcerned.

“I think it is a great idea and anything like this which makes superannuation more affordable for NZ should be encouraged."

Financial Advice NZ chief executive Katrina Shanks said it would mean those migrant show were affected would have to work harder with the assets they had and maximise them with as many revenue streams as possible.

The advice they would need would be much wider and greater, she said.

Maxwell earlier said the length of residence needed to be decided in the context of increasing international mobility and the reform of overseas pensions.

The 10 years currently required is short by international standards.

Tags: NZ Super superannuation

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