Retirement Lump Sum

This one-off payment recognises the barriers to retirement saving, if you’ve been on longer-term veteran’s income support.

Qualifying

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.

Service

You must have:

Age

You must have turned 65 after 6 December 2014.

Income support

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: 

Assets

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.

Asset testing

Assets tested

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.

Assets exempt

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.

Applying

Application form (Retirement Lump Sum) [PDF, 400 KB] includes agreement to asset-testing. You’ll need to list your assets and their estimated value.

Getting paid

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

Related information

Relevant legislation

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