Understanding Your Financial Rights with Susan Edmunds
Introduction
Have financial questions? RNZ has launched the engaging new podcast, “No Stupid Questions,” hosted by money correspondent Susan Edmunds. In this informative series, listeners can submit inquiries related to money and the economy, either via written questions or voice memos to questions@rnz.co.nz. Enhance your financial literacy by signing up for “Money with Susan Edmunds,” a dedicated newsletter that dives deep into various financial topics.
Understanding New Zealand Super for Australian Citizens
Your Superannuation Queries Answered
If you’re an Australian citizen residing in New Zealand and planning for retirement, you’re likely pondering on your superannuation options. For those born in 1964 or earlier—like yourself—understanding how both New Zealand Super (NZ Super) and the Australian Superannuation system affect your financial future is crucial.
Key Questions About NZ Super
Upon turning 65, you will become eligible for New Zealand Super, provided you meet the residency criteria. However, confusion arises when considering a potential move back to Australia at 65 or transitioning to the Australian Super at 67. Under New Zealand’s reciprocal Social Security Agreement (SSA) with Australia:
- Australian citizens who migrate to New Zealand are treated similarly to local citizens concerning benefits and pensions, provided they fulfill the residency criteria.
- You may receive NZ Super at 65 if you’ve lived in New Zealand long enough. However, if you rely on your Australian residency to meet these criteria, your eligibility for NZ Super might be pushed to age 67.
Important Steps
To obtain precise insights tailored to your situation, contact the Ministry of Social Development (MSD) service center. They can provide information specific to your circumstances, especially regarding switching between pensions. Notably, the Australian Age Pension is subject to income and asset testing.
Dealing with Retirement Village Investments
Understanding Your Rights After a Family Member’s Passing
If you inherited a retirement unit after your father’s passing in 2013 and are now facing challenges regarding its resale, you’re not alone. Many navigate similar stresses when dealing with retirement villages.
Selling the Unit: What You Need to Know
When your stepmother vacated the unit in March, you expected the process to move swiftly. However, as of October, you’re left in limbo.
The Retirement Commission clarifies that operators are not obliged to repay capital until the unit gets resold. They are, however, responsible for:
- Actively marketing the unit.
- Providing regular sales updates.
- Completing a valuation after six months.
- Reducing monthly fees after nine months.
If you believe the operator has neglected these responsibilities, you may lodge a formal complaint. This involves several steps:
- Submit a written complaint to the operator; they must respond within 20 working days.
- If unresolved, escalate through the village’s internal complaints process, then to a statutory supervisor, mediator, and finally, a dispute panel.
- If the unit remains unsold after nine months, you can issue a dispute notice.
Ongoing Legislative Review
The Retirement Villages Act 2003 is currently under review. One focus is how to enable earlier capital repayments when residents leave a village. While waiting for reforms, seeking independent legal advice is advisable if you’re unsure about your operator’s fulfillment of their obligations.
Conclusion: Stay Informed and Engaged
For continued insights into managing finances effectively, be sure to sign up for “Money with Susan Edmunds,” your weekly guide to navigating the financial landscape.
By engaging with resources like the RNZ podcast and newsletter, you’ll enhance your understanding of financial topics, ensuring you make informed decisions about your future.
Call to Action
Have questions for Susan? Send in your inquiries to questions@rnz.co.nz and take advantage of the financial wisdom and guidance offered through “No Stupid Questions.”
