Retirement Lump Sum
This one-off payment recognises the barriers to retirement saving, if you’ve been on longer-term veteran’s income support.
To get Retirement Lump Sum, you must meet conditions as to your age, assets and service. You must also have had veteran’s income support for at least 10 years.
You must have:
- service before 1 April 1974; or
- Qualifying Operational Service [PDF, 117 KB].
You must have turned 65 after 6 December 2014.
Before turning 65, you must have had veteran’s income support for at least 10 years (needn’t be continuous). Veteran’s income support is any of:
- Veteran's Pension (external link)
- Weekly Compensation
- Weekly Income Compensation
- Economic Pension, War Service Pension or War Veteran’s Allowance (earlier entitlements, no longer granted).
Asset threshold applies — assets must be below it when you turn 65.
There are two asset thresholds—higher one includes house and car in the assets tested; lower one doesn’t. The threshold used depends on your relationship status:
- if you’re single, the higher threshold applies
- if you’ve a spouse or partner, their assets are included in the test but you choose which threshold applies.
Assets tested include:
- cash, savings, investments
- investment property
- licence-to-occupy contracts
- caravans, campervans, leisure boats.
Assets that may be tested include:
- loans or gifts you made—depending on value and time-period (some gifts made in recognition of care are exempt)
- assets we find you deprived yourself of.
Some assets are exempt from testing. These include personal belongings; family taonga; household furniture & effects; some lump-sum awards from ACC or us.
Kiwisaver’s generally exempt, as are pre-paid funeral plans up to $10,000 per person.
Application form (Retirement Lump Sum) [PDF, 400 KB] includes agreement to asset-testing. You’ll need to list your assets and their estimated value.
Payment of Retirement Lump Sum is as a one-off amount, with New Zealand income tax taken off.
If you’re living outside New Zealand, check with your local authorities about tax or income-testing responsibilities.
Finding out more
Factsheet (Retirement Lump Sum) [PDF, 181 KB]: summary for printing
- Veterans’ Independence Programme: support to stay independent in your home
- Case Management: help accessing or managing support for your health & social needs
- Reviews: review or appeal rights, if you disagree with a decision to do with whether you qualify
- Veterans' Support Act (external link) (NZ Legislation website): sections 149–151
- Veterans’ Support Regulations (external link) (NZ Legislation website): regulations 34–39