Tropical retirement barriers to be removed

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A new law aims to remove barriers to people who want to move to tropical islands ahead of their retirement.

The law would affect people planning to retire in the Cook Islands, Niue and Tokelau, all of which are in the Realm of New Zealand.

The Social Assistance (Portability to Cook Islands, Niue and Tokelau) Bill passed after its third reading in Parliament today.

The law would let people in the islands apply for New Zealand Super from those places, instead of just from New Zealand.

Cook Islanders, Niueans and Tokelauans are all New Zealand citizens. The usual superannuation eligibility rules applied - people must have lived in New Zealand for at least 10 years after turning 20, five of which must be over the age of 50.

Those who moved to the islands after the age of 55 could apply for super when they turned 65.

Social Development Minister Anne Tolley said the Bill would offer more pension flexibility for people who wanted to live in the islands.

Previously, people had to be "resident and present" in New Zealand when they applied for Kiwi superannuation, Mrs Tolley said.

"These islands struggle with depopulation and retaining a skilled workforce. This Bill allows people to return to these islands and contribute valuable skills for up to ten years before applying for New Zealand Superannuation."

Labour supported the bill and called it a "step in the right direction" towards equal treatment for all Kiwis living in the Realm. However, both Labour and NZ First believed the rule requiring people to live in New Zealand for five years over the age of 50 should be dropped.

"Many have retired already in these islands before age 65," New Zealand First said. "The simple change in rules means they do not have to return and live in New Zealand prior to application."

The party hoped the bill would address the depopulation of the islands and would help Kiwis and Cook Islanders to retire to the islands.

"We want our superannuitants to have as many options as possible as to where they choose to live," Mrs Tolley said in a statement after the bill's passage.

"They have worked hard throughout their lives and many wish to return home as they near retirement," she added.