Investment informant

Ruapehu Bulletin, Volume 12, Issue 548, 9 August 1994, Page 11

Investment informant

Your questions answered by Warrick Funnell, independent investment broker My wife and I are due to retire in three years time and we have worked too hard to accumulate what assets we have. Can you shed some light on how we can organise our ajfairs so that we don't lose our life-long eamings to the government when I retire and apply for a pension. Dear T& C I am especially pleased to be able to answer your question in regard to the preservation of your capital in retirement. Firstly, because it is important that you retain your savings for your own use. There in general seems to be a lot of confusion with regard to what you can and can't do or,

more importantly, what the government can or can't do in taking your savings off you either in surtax or by making you pay foi yourselves if you have to go into a home later on. Pensions You are both entitled to New Zealand Superannuation when you turn 65. You are entitled to this without any means testing at all. If your spouse is still under 65 when you qualify, you will either receive a single pension or you and your spouse will still qualify for a full married pension as long as your family income is less than $2600. If your other income is higher than $2600 your spouse' s pension will reduce but it may Turn to Page 10

Investment informant

From Page 11 still be well worth claiming, even if your family income is quite a lot higher than $2600. There is also a transitional retirement benefit for those who have been forced to retire after age 60 but before age 65. This is subject to an income means test and the level of payment is about $70 per fortnight less than Super for a married couple. The other tax that people in retirement who are on Super need to be aware of is surtax. Surtax is paid on all other income at a rate of 25 cents in the dollar for single people on their income that is above $4160. and married people when their joint income is in excess of $6240. At present there are various types of investment that you can quite safely invest in and not have to pay the surcharge. A broker can advise you on these. CONTINUED NEXT WEEK