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Common questions and answers

Updated 23 April 2010

This factsheet sets out the key elements of the UK State Pension scheme and the impact that UK State Pensions may have on your payments of New Zealand Superannuation or Veteran’s Pension.  The information about UK State pensions should only be used as a guide. For more specific information about UK state Pensions please contact the Pension Service in the United Kingdom.

 

At what age can I get a State Pension?

The United Kingdom (UK) has a state pension scheme that is available to men aged 65 years or over. Up until 5 April 2010 women were able to access the state pension scheme from age 60 but from 6 April 2010 the age of entitlement to the UK State Pension for women will gradually rise to 65 by 2020 . You can find a table at the end of this document showing the applicable UK State Pension age for women.

Over the longer term the UK State Pension age will also gradually increase between 6 April 2024 and 5 April 2046 from 65 to 68 years for both men and women.

 

What State Pensions are available in the UK?

There is the basic State Pension and an additional state pension called the State Second Pension (S2P). The S2P replaced the State Earnings Related Pension Scheme (or SERPS) in April 2002. Together, the basic State Pension and the S2P are referred to as the State Pension.

UK residents can choose to join a private pension scheme instead of remaining in the S2P scheme. This is called 'contracting out'.

 

Who’s entitled to a State Pension?

If you have worked in the UK and made social security contributions to the UK National Insurance scheme for the required number of qualifying years , you will be entitled to the basic State Pension (you can also receive National Insurance credits for periods when you were a carer or claiming certain United Kingdom benefits). You may also be entitled to a State Second Pension (S2P).

The amount of basic State Pension that you will receive is based on the number of contributions you have made. You need to have accumulated 30 qualifying years to get a full basic State Pension. To get the minimum basic State Pension you usually need to have at least 1 qualifying year.

UK employees and their employers pay what are called Class 1 contributions to the UK National Insurance scheme. National Insurance contributions are calculated as a percentage of your gross pay. Your employer collects your Class 1 National Insurance contributions out of your earnings via the Pay as You Earn (PAYE) scheme. The Class 1 contributions together with tax on your earnings are passed to the UK HM Revenue and Customs (HMRC), the government department responsible for updating an individual's National Insurance record.

If you are a married or have a civil partner and cannot get a full basic State Pension because you do not have enough qualifying years based on your own National Insurance contributions, you may be able to get a basic State Pension based on 60% of the amount of your spouse or civil partner’s basic State Pension.

SSP is related to a person’s annual earnings. Payments are based on the amount of Class 1 contributions paid, or treated as having been paid, on earnings between the Lower and Upper Earnings Limit in each tax year. If you want further information about the SSP rules you can contact The Pension Service, the UK government department that administers the UK pension scheme.

 

How to apply for a State Pension?

If you are not already getting a State Pension, we need you to apply for this by filling in an application form. We will forward your application to The Pension Service in the UK. The Pension Service will decide whether you are entitled to a State Pension and will tell you what their decision is. This may take a few months.

 

Why do I need to apply for a State Pension?

You are required to apply for any overseas state pensions that you may be eligible for under Section 69G of the Social Security Act 1964. If you or your partner do not apply to receive any State Pension you may be eligible for, you risk losing your entitlement to a New Zealand benefit or pension.

 

How much State Pension will I receive?

This depends on how long you paid into the UK National Insurance scheme and how many National Insurance credits you may have for periods when you were not working. If you qualify for the State Pension, The Pension Service will advise you of the amount you will receive.

 

Will the amount of my State Pension be increased while I live in New Zealand?

The amount of State Pension paid to pensioners living in New Zealand and some other countries is "frozen". This means that your State Pension is paid at the same rate as it was when you first became entitled to it, or at the rate you were being paid when you left the UK for New Zealand, if you were already receiving your UK pension on that date.

 

How often will I receive my State Pension?

You can choose to have your State Pension paid every four weeks or every 13 weeks. If your UK pension is less than £5 per week, you will be paid every 52 weeks.

 

Where can I get further information about State Pensions?

Further information on State Pensions can be obtained from The Pension Service. Their website address is:

 

Will my State Pension affect the amount of New Zealand Superannuation or Veteran’s Pension I get?

If you are entitled to a State Pension or another UK state benefit, generally your New Zealand Superannuation or Veteran’s Pension payments will be reduced by the amount of that State Pension or state benefit.

Section 70 of the Social Security Act 1964 sets out the requirement for this deduction and Article 15 of the Social Security Agreement between New Zealand and the United Kingdom (the Agreement) largely reflects this. This means that the treatment of UK pensions under the Agreement is generally consistent with the treatment of overseas pensions from other countries.

This ensures that all New Zealanders – regardless of whether they’ve lived overseas and are entitled to an overseas pension – get an equitable amount of state retirement pension. It would take you 30 years to become entitled to the full amount of UK pension, whereas it takes only 10 years of living in New Zealand before you become entitled to the full rate of New Zealand Superannuation. If you received a partial UK pension as well as full New Zealand Superannuation or Veteran’s Pension you would receive more state retirement pension than lifelong New Zealand residents, who have contributed through their taxes to the funding of New Zealand Superannuation for a longer period of time.

 

Are there any instances where the State Pension does not affect the rate of New Zealand Superannuation and Veteran’s Pension?

The State Pension does not affect the rate of New Zealand Superannuation or Veteran’s Pension in certain limited instances. You are able to receive both a State Pension and a New Zealand pension in full if you:

• qualify for New Zealand Superannuation or Veteran’s Pension without the assistance of the Agreement; and
• were a permanent resident of New Zealand on or before 1 January 1970; and
• on or before that date, made contributions to the UK National Insurance scheme while living in New Zealand

This provision is in Article 15(3) of the Agreement.

 

How much New Zealand Superannuation or Veteran’s Pension will I get paid?

The amount paid depends on marital status and living arrangements. There are three basic rates: the married rate, the single sharing rate, and the single living alone rate. These three rates are not subject to an income or asset test.

A qualifying superannuitant can choose to receive a married rate which includes payment for a spouse who is under 65 years of age (the “partner included” rate). This rate is subject to an income test.

Generally, superannuitants and veteran’s pensioners who receive a State Pension receive a lower rate of New Zealand Superannuation or Veteran’s Pension. If your State Pension exceeds the amount of New Zealand Superannuation or Veteran’s Pension you would have received if this was your only pension source, then you will continue to receive only your State Pension amount.

 

Am I entitled to other New Zealand payments in addition to New Zealand Superannuation or Veteran’s Pension?

You may be eligible for extra help such as a Disability Allowance for medical costs or an Accommodation Supplement for accommodation costs. We encourage you to check with Work and Income whether you are entitled to extra help.

 

Does my UK “contracted-out” pension affect the payment of New Zealand Superannuation or Veteran’s Pension or other New Zealand benefits?

Contracted-out pensions are regarded as private pensions which do not affect the rate of New Zealand Superannuation or Veteran’s Pension. However, contracted-out pensions will count as income for any income tested benefits such as Accommodation Supplement or Disability Allowance that you might receive.

 

Does my State Pension affect my partner’s New Zealand Superannuation or Veteran’s Pension entitlement?

This depends on the amount of your State Pension. If the amount of State Pension you receive is less than your New Zealand Superannuation or Veteran’s Pension, your partner’s New Zealand Superannuation or Veteran’s Pension is not affected.

If the amount of State Pension you receive is greater than your New Zealand Superannuation or Veteran’s Pension, your partner’s New Zealand Superannuation or Veteran’s Pension will be reduced by the amount that your State Pension exceeds your New Zealand Superannuation or Veteran’s Pension.

If you are receiving the “partner included” rate, the amount of State Pension will be deducted from this married rate and the remaining New Zealand Superannuation or Veteran’s Pension amount will be divided equally between the two of you.

 

What options are available for payment of my UK pension in New Zealand?

There are two payment methods for getting a State Pension paid into New Zealand - the direct payment method or the special banking option. To discuss the most suitable option for you, please contact our International Services team.

Under the direct payment method you can choose to have your State Pension paid directly into your own bank account. Your New Zealand Superannuation or Veteran’s Pension is reduced by the amount of your State Pension. The two pensions together add up to an amount that is similar to the full rate of New Zealand Superannuation or Veteran’s Pension.

Under the special banking option, you can choose to have your State Pension paid into a special bank account that only Work and Income and the bank can access. In return, you get the full amount of New Zealand Superannuation or Veteran’s Pension.

 

Do state pensions from other countries affect payment of New Zealand Superannuation or Veterans Pensions?

Yes, people who have lived in other countries and who are also eligible for overseas state pensions covered by Section 70 of the Social Security Act 1964 will have their New Zealand Superannuation or Veteran’s Pension reduced in the same way.

 

UK State Pension age for women born between 6 April 1950 and 5 April 1955

(1) Period within which woman's birthday falls	(2) Day pensionable age attained
6th April 1950 to 5th May 1950	6th May 2010
6th May 1950 to 5th June 1950	6th July 2010
6th June 1950 to 5th July 1950	6th September 2010
6th July 1950 to 5th August 1950	6th November 2010
6th August 1950 to 5th September 1950	6th January 2011
6th September 1950 to 5th October 1950	6th March 2011
6th October 1950 to 5th November 1950	6th May 2011
6th November 1950 to 5th December 1950	6th July 2011
6th December 1950 to 5th January 1951	6th September 2011
6th January 1951 to 5th February 1951	6th November 2011
6th February 1951 to 5th March 1951	6th January 2012
6th March 1951 to 5th April 1951	6th March 2012
6th April 1951 to 5th May 1951	6th May 2012
6th May 1951 to 5th June 1951	6th July 2012
6th June 1951 to 5th July 1951	6th September 2012
6th July 1951 to 5th August 1951	6th November 2012
6th August 1951 to 5th September 1951	6th January 2013
6th September 1951 to 5th October 1951	6th March 2013
6th October 1951 to 5th November 1951	6th May 2013
6th November 1951 to 5th December 1951	6th July 2013
6th December 1951 to 5th January 1952	6th September 2013
6th January 1952 to 5th February 1952	6th November 2013
6th February 1952 to 5th March 1952	6th January 2014
6th March 1952 to 5th April 1952	6th March 2014
6th April 1952 to 5th May 1952	6th May 2014
6th May 1952 to 5th June 1952	6th July 2014
6th June 1952 to 5th July 1952	6th September 2014
6th July 1952 to 5th August 1952	6th November 2014
6th August 1952 to 5th September 1952	6th January 2015
6th September 1952 to 5th October 1952	6th March 2015
6th October 1952 to 5th November 1952	6th May 2015
6th November 1952 to 5th December 1952	6th July 2015
6th December 1952 to 5th January 1953	6th September 2015
6th January 1953 to 5th February 1953	6th November 2015
6th February 1953 to 5th March 1953	6th January 2016
6th March 1953 to 5th April 1953	6th March 2016
6th April 1953 to 5th May 1953	6th May 2016
6th May 1953 to 5th June 1953	6th July 2016
6th June 1953 to 5th July 1953	6th September 2016
6th July 1953 to 5th August 1953	6th November 2016
6th August 1953 to 5th September 1953	6th January 2017
6th September 1953 to 5th October 1953	6th March 2017
6th October 1953 to 5th November 1953	6th May 2017
6th November 1953 to 5th December 1953	6th July 2017
6th December 1953 to 5th January 1954	6th September 2017
6th January 1954 to 5th February 1954	6th November 2017
6th February 1954 to 5th March 1954	6th January 2018
6th March 1954 to 5th April 1954	6th March 2018
6th April 1954 to 5th May 1954	6th May 2018
6th May 1954 to 5th June 1954	6th July 2018
6th June 1954 to 5th July 1954	6th September 2018
6th July 1954 to 5th August 1954	6th November 2018
6th August 1954 to 5th September 1954	6th January 2019
6th September 1954 to 5th October 1954	6th March 2019
6th October 1954 to 5th November 1954	6th May 2019
6th November 1954 to 5th December 1954	6th July 2019
6th December 1954 to 5th January 1955	6th September 2019
6th January 1955 to 5th February 1955	6th November 2019
6th February 1955 to 5th March 1955	6th January 2020
6th March 1955 to 5th April 1955	6th March 2020