For many New Zealanders, turning 65 no longer means stopping work altogether. Some keep working part-time, others run small businesses, draw on savings, or receive income from investments. That flexibility is one of the strengths of New Zealand’s retirement system — but it also raises a common question:
How does NZ Super interact with other income and work after 65?
The short answer: NZ Super is not income-tested — but tax still matters, and how your income is combined can affect what you take home each week.
Here’s a clear, practical explanation.
NZ Super Is Not Reduced by Working
New Zealand Superannuation is paid regardless of whether you continue working after 65.
That means:
- You can work full-time, part-time, or casually
- Your wages do not reduce your NZ Super entitlement
- There is no earnings cap
- You do not need to report hours worked to stop a reduction
This makes NZ Super unusual internationally and gives retirees significant freedom.
But NZ Super Is Taxable
While NZ Super isn’t income-tested, it is taxable income.
If you earn other income (such as wages or business income), all income is added together for tax purposes.
Tax is deducted using PAYE and depends on:
- Whether NZ Super is your main or secondary income
- Your chosen tax code
- Your total income level
This is where many people notice a difference.
Common Income Types and How They Interact With NZ Super
1. Wages or Salary After 65
If you keep working:
- NZ Super is usually taxed as secondary income
- Your wages are often treated as your main income
- A higher secondary tax rate may apply to NZ Super
This doesn’t mean you’re paying more tax overall — it helps prevent a tax bill later.
2. Self-Employment or Business Income
If you’re self-employed:
- NZ Super continues as normal
- Business income is taxed separately
- You may need to pay provisional tax
- End-of-year tax square-ups are common
Good record-keeping becomes especially important.
3. KiwiSaver Withdrawals
Withdrawals from KiwiSaver:
- Do not reduce NZ Super
- Are usually tax-paid already
- Can be withdrawn as lump sums or regular income
KiwiSaver is designed to supplement, not replace, NZ Super.
4. Investment Income (Interest, Dividends, Rent)
Investment income:
- Does not affect NZ Super eligibility
- Is taxable and added to total income
- Can push you into a higher tax bracket
This is common for retirees with rental properties or term deposits.
5. Overseas Pensions or Income
Overseas income:
- Is usually taxable in New Zealand
- May affect tax rates applied to NZ Super
- Can trigger obligations under international agreements
This area can be complex and often needs advice.
Real-Life Examples
John, 66, works two days a week and receives NZ Super.
“My Super didn’t change at all — but the tax on it did. Once I understood the tax code, it made sense.”
Ruth, 70, lives off NZ Super and investment income.
“I still get the full Super, but I budget knowing tax takes a bite across everything.”
What Has Not Changed
Despite common myths:
- NZ Super is not income-tested
- Working does not reduce entitlement
- KiwiSaver does not cancel NZ Super
- You do not need to stop work at 65
- There is no earnings threshold
Any change people notice is almost always about tax, not eligibility.
Key Tax Codes to Understand
Your tax code matters more than your income source.
In simple terms:
- M → NZ Super is your main income
- S / SH / ST → NZ Super is secondary income
Choosing the right code helps avoid:
- Weekly over-deductions
- End-of-year tax bills
Tax treatment is administered by Inland Revenue, while payments are handled by Work and Income.
Should You Keep Working After 65?
Many do — and for good reasons:
- Extra income improves financial comfort
- Work can improve health and social connection
- NZ Super provides a stable income floor
There is no financial penalty for continuing to work, aside from normal tax.
What You Should Do
- Review your tax code once you start or stop work
- Expect tax to change if income changes
- Budget based on after-tax income, not gross
- Keep Inland Revenue details up to date
- Seek advice if you have multiple income sources
Small adjustments early can prevent surprises later.
Common Questions About NZ Super and Other Income
1. Will working reduce my NZ Super?
No.
2. Can I earn unlimited income?
Yes.
3. Why did my NZ Super payment drop slightly?
Likely due to tax changes.
4. Does KiwiSaver affect NZ Super?
No.
5. Is NZ Super income-tested?
No.
6. Can I work overseas and still get NZ Super?
Yes, but travel and tax rules apply.
7. Does my partner’s income affect my NZ Super?
No.
8. Do I need to report income to Work and Income?
Usually no — tax is handled by Inland Revenue.
9. Can I change my tax code?
Yes, at any time.
10. Is it common to work after 65?
Yes — and increasingly so.
Bottom Line
NZ Super works alongside other income, not against it. You can keep working, withdraw KiwiSaver, or earn investment income without losing your entitlement. The key interaction is tax, not eligibility.
Understanding how your income streams combine — and choosing the right tax settings — ensures you get the most out of retirement, on your terms.
