As of May 2025, New Zealand residents eligible for NZ Super (New Zealand Superannuation) can choose to delay receiving payments past the qualifying age of 65. This delay isn’t just allowed—it comes with financial incentives. But is it the right choice for you? This guide breaks down everything you need to know about deferring your NZ Super, how much more you could get, and what to consider before making the decision.
What Happens If You Delay NZ Super?
Delaying NZ Super means you won’t start receiving payments at age 65. Instead, you postpone them to a later date. In exchange, you’re offered a higher fortnightly payment when you do start collecting. This option is called the “deferral option” and is designed to reward those who don’t need the income immediately and can wait.
How Much More Can You Get by Delaying?
The exact increase depends on how long you delay. Here’s an overview:
| Delay Period | Approx. % Increase in Payment | Notes |
|---|---|---|
| 1 Year (to age 66) | ~6.1% | Compounds yearly |
| 2 Years | ~12.6% | Bigger jump due to compounding |
| 3 Years | ~19.3% | Capped at age 70 |
| 4 Years | ~26.1% | Max deferral period ends at 70 |
| 5 Years (to age 70) | ~33% | Max increase available (as of 2025) |
These percentages are based on the current NZ Super deferral scheme offered by the Ministry of Social Development (MSD). The longer you wait (up to age 70), the larger your payment gets.
Who Should Consider Delaying?
Delaying NZ Super isn’t for everyone. It may suit you if:
- You’re still working and don’t need the extra income.
- You have other retirement savings or investments to draw on.
- You’re in good health and expect to live longer.
- You want to reduce the tax impact of receiving NZ Super while still earning.
However, if you rely on NZ Super as your main income source, or your health is uncertain, delaying could mean missing out on payments you may need now.
How to Defer Your NZ Super
The deferral process is optional and must be actively chosen. Here’s how to do it:
- Don’t apply at 65: Simply don’t submit your application when you first become eligible.
- Apply later: When you’re ready to begin payments, apply through Work and Income NZ.
- Back pay isn’t available: Payments start from when you apply—not when you became eligible.
You can apply online or by visiting a Work and Income office. It’s recommended to contact them in advance to discuss your personal situation.
Tax Implications
Your NZ Super is treated as taxable income. If you delay and start receiving higher payments later, they’re still taxed at your applicable rate. If you defer while still earning income, this can help you avoid being pushed into a higher tax bracket during your peak earning years.
Things to Watch Out For
- You can’t change your mind retroactively: Once you’ve delayed, you can’t ask for missed payments.
- Health matters: The longer you live, the more financially beneficial deferral becomes. But if your health is poor, you might be better off taking it sooner.
- Partner’s Super: Your decision doesn’t affect your partner’s entitlement or timing.
NZ Super Deferral in 2025: Strategic Considerations
Given economic and policy shifts in 2025, deferring NZ Super may be more appealing:
- Inflation adjustments have been modest, making the guaranteed return from deferral relatively valuable.
- Investment returns are less predictable in mid-2025, making fixed increases from NZ Super deferral more attractive.
- Government has confirmed the deferral scheme will remain stable for the next 2 years (as of May 2025).
Conclusion
Delaying NZ Super in 2025 can be a smart financial move—but it depends on your income needs, life expectancy, and retirement plans. The boost in payments can be substantial if you wait until age 70, but you’ll forgo thousands in the meantime. Take time to assess your full financial picture and consider speaking with a retirement planner before deciding.
FAQ
Can I defer NZ Super if I’m still working?
Yes. In fact, continuing to work is one of the most common reasons people delay NZ Super. It can help you avoid higher taxes and increase your future payments.
Will I get back pay if I delay?
No. Payments only begin from the date you apply. You won’t receive any back payments for the period you chose not to receive NZ Super.
How do I know if deferring is right for me?
It depends on your financial situation, health, and life expectancy. If you don’t need the income immediately and are in good health, it can pay off.
Does deferring affect my partner’s payments?
No. Each person’s NZ Super is assessed individually. Your choice to delay won’t impact your partner’s entitlement.
Can I start payments before age 70 if I change my mind?
Yes. You can apply to start payments at any time between ages 65 and 70. You don’t have to wait the full five years.
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