Oz KiwiSavers may get money early

New Zealanders moving home from Australia will soon be able to access some of their retirement savings from the age of 60.

Legislation introduced in Australia yesterday will make it possible for people to transfer retirement savings across the Tasman, in either direction, from July next year.

Kiwis who have worked in Australia and made compulsory superannuation payments will be able to bring their savings across into a KiwiSaver scheme.

They will also be able to access those savings five years earlier than the usual age in New Zealand, said Michael Littlewood, director of Auckland University’s Retirement Policy and Research Centre.

The reason for this is that Australians are able to withdraw their retirement savings at 60-years old, and in some cases up to five years younger, compared to 65 in New Zealand.

“For those who make the transfer, they could take out their Australian savings from what is called the ‘preservation age’ in Australia,” Littlewood said.

“If you’re intending to retire in New Zealand then it makes sense to have your retirement savings here.”

Australia’s preservation age, ranging between 55 and 60, means eligibility for access to superannuation savings depends on an employee’s date of birth.

The legislation to establish a trans-Tasman retirement savings portability scheme removed one more barrier to labour mobility between the two countries, said Australia’s Minister for Financial Services and Superannuation, Bill Shorten.

“The new scheme will assist the thousands of Australians and New Zealanders who move across the Tasman Sea each year, help them to consolidate their retirement savings in their country of residence and avoid paying fees and charges on accounts in the two countries.”

More than 50,000 New Zealanders moved to Australia in the last year, while about 14,000 people left Australia permanently for New Zealand, he said in a statement yesterday.

Littlewood said the news rules are a positive step.

“Overall it’s a good thing because it’s administratively much more convenient.

“The development of these types of common rules is to be encouraged.”

Previously, New Zealanders who made payments to Australian pension schemes had to leave them there.

Australians moving to New Zealand will be able to bring their benefits with them.

The rule also means New Zealanders moving to Australia will be able to transfer their KiwiSaver scheme savings and add them to their Australian superannuation benefits. But those KiwiSaver funds will not be accessible until the a