Working Past 65 in NZ: Can You Get NZ Super and a Salary at the Same Time?

You can draw NZ Super and keep earning a wage — Super is not income-tested, so a job does not reduce it. What changes is your tax code, your end-of-year position and your KiwiSaver. Here is how Super, salary and tax fit together past 65.

This article is general information only and is not personalised financial advice. It does not take into account your particular financial situation, goals or needs. Before acting, consider whether it's right for you and seek advice tailored to your circumstances.

Plenty of people reach 65, qualify for NZ Super, and have no intention of stopping work. A common worry is that drawing Super while still earning will cost them their pension, or land them with a tax bill. The first concern is unfounded: NZ Super is not income-tested, so a salary does not reduce it. The second is real but manageable, and it comes down to getting your tax codes right.

This guide explains how Super and a salary sit together, how the combined income is taxed, why some people end up owing tax at year end, and what happens to your KiwiSaver once you cross 65.

TL;DR: You can receive NZ Super and a salary at the same time, and the wage does not reduce your Super — it is not income-tested ³. The two incomes are taxed together on the progressive scale, so your tax codes (M on the main income, a secondary code on the other) must match your total income or a year-end bill can follow ⁴⁵. After 65, employer KiwiSaver contributions and the government contribution stop ⁶⁸.

Can you receive NZ Super and keep working in New Zealand?

Yes. Qualifying for NZ Super is based on your age and residency, not on whether you have stopped working. Once you turn 65 and meet the residency rules, you can claim Super and keep your job, start a new one, or run a business, all at the same time ³.

Around half of New Zealanders in their late sixties do exactly that. About 48% of people aged 65 to 69 are active in the labour market, and roughly a quarter of all over-65s are still working — among the highest older-worker participation rates in the OECD ⁹. So this is a well-worn path, not an unusual one.

The reason it works cleanly is the design of NZ Super itself, which we come to next.

Does income from a job reduce your NZ Super?

No. NZ Super is a universal pension paid at a flat rate set by your living situation, with no income test and no asset test ³. You can earn a full-time salary and still receive your full gross Super entitlement, exactly the same as someone the same age who has retired completely.

This catches out people who have lived overseas, because a number of countries reduce the state pension as other income rises. New Zealand does not. The current after-tax rates on the standard M tax code give a sense of the base figure you keep regardless of what you earn:

Rates effective 1 April 2025; current as at 5 June 2025. NZ Super rates are reviewed and adjusted each 1 April ¹⁰.

So the headline is reassuring. The wage does not touch your Super entitlement. What it does change is how the two incomes are taxed together, which is where the detail matters.

How is NZ Super taxed when you also earn a salary?

NZ Super is taxable income, and so is your salary. The two are not taxed in separate silos — they stack up and are assessed together against New Zealand's progressive tax scale, where each slice of your total annual income is taxed at an increasing rate ⁴:

Thresholds set 31 July 2024; in force as at 5 June 2025 ⁴.

For a single person, NZ Super alone is roughly $28,000 a year gross, which already uses up the 10.5% band and part of the 17.5% band. A part-time wage on top is therefore taxed at 17.5%, or at 30% once your total income passes $53,500. The key idea is that your salary is taxed at your marginal rate — the band your combined income reaches — not at a penalty rate, and not by reducing your Super.

The table below works through this for a single person on the M code, with a part-time wage on the matching secondary code, at two earning levels.

Figure: NZ Super plus a salary — how the combined income is taxed. Super on the M code; wage on the matching secondary code (S at 17.5%, then SH at 30% on the slice above $53,500). Modelled on IRD tax codes and 2025/26 NZ Super rates ¹⁴⁵; figures are rounded illustrations, not predictions, and your actual tax depends on your full circumstances.

The two incomes together produce a tidy result only if the tax codes on each one are set correctly. That is the part people most often get wrong.

Which tax code should you use on NZ Super and on your job?

Inland Revenue's rule is straightforward: use the main code on your highest source of income, and a secondary code on the other one ⁵.

For most people drawing Super and a part-time wage, the Super is the larger income, so it keeps the M code, and the wage takes a secondary code ⁵. The secondary code is not a penalty — it exists so the tax across both incomes adds up correctly, because the bottom tax bands are already used by the main income. The right secondary code is the one that matches the band your total income (Super plus wage) falls into:

Secondary tax codes by total income; current as at 5 June 2025 ⁵.

If your salary happens to be larger than your Super — for someone working close to full-time — the roles flip: the salary takes the M code and your NZ Super moves to a secondary code based on your total income ⁵. Either way, the goal is the same: the right total tax deducted across both incomes, so the year squares up on its own.

Inland Revenue's "Work out my tax code" questionnaire confirms the right codes from your income details. It is worth running it when you start work, and again whenever your hours or income change.

Why do some people get a tax bill at the end of the year?

An end-of-year bill almost always means too little tax came out across the year. For people working past 65, the usual cause is a tax-code mismatch ⁵.

The classic trap is leaving NZ Super on M while adding a wage that does not carry the correct secondary code — or carries a flat default code that ignores the Super. Both incomes then quietly use the lower tax bands, the combined deduction falls short, and the gap surfaces when your income is assessed. Because the scale is progressive, the slice of income that should have been taxed at 17.5% or 30% was effectively taxed too low ⁴⁵.

A few other patterns add to it:

• Income that is not taxed at source. Rental or self-employed income alongside Super and a wage has no PAYE taken as it is paid, so the tax on it is settled at year end. If nothing was set aside, the bill can be a surprise ⁴.
• A jump into a higher band. Extra hours late in the year can push your total income into the next bracket, so more tax was due than your code assumed ⁴.
• The opposite problem. A secondary code set higher than your total income justifies takes too much tax every payday. You usually get it back after year end, but you were without that cash in the meantime.

None of this means you have done anything wrong. It is the system catching up when in-year deductions did not match the total. Setting the codes correctly in advance is what prevents a repeat.

How does working past 65 affect your KiwiSaver contributions?

This is where the rules genuinely change at 65, and it is worth knowing before you take or keep a job.

Compulsory employer contributions stop. Once you are 65, your employer is no longer legally required to make the compulsory KiwiSaver contribution ⁸. Below 65, the minimum employer contribution is 3% of your gross pay, matching the 3% minimum employee rate (both scheduled to rise to 3.5% from 1 April 2026) ⁷. After 65, an employer can choose to keep contributing, but that depends on your individual employment agreement rather than any obligation ⁸.

The government contribution stops. Eligibility for the KiwiSaver government contribution runs up to the point you can withdraw at 65 ⁶. Before then, the Government adds 50 cents for every $1 you contribute, up to a maximum of $260.72 a year if you put in at least $1,042.86 of your own money over the contribution year (this maximum was halved from $521.43 effective 1 July 2025) ⁶. From the year you qualify for NZ Super, that top-up no longer applies ⁶.

The deduction from your wages is no longer automatic. Because the employer side is no longer compulsory, the wage deduction stops being mandatory too — it continues only by agreement ⁸. You can still choose to contribute.

Here is how the picture shifts:

Source: IRD and Work and Income guidance, as at 5 June 2025 ³⁵⁶⁷⁸.

For what unlocks at 65 and the ways to take your KiwiSaver, see our guide to withdrawing your KiwiSaver at 65.

Should you keep contributing to KiwiSaver after 65 while working?

There is no single right answer, and it depends on your situation rather than a rule. A few things to weigh up:

• The incentives have gone. Without the employer match and the government contribution, contributing after 65 is simply you moving your own money into an invested fund ⁶⁸. That can still make sense, but the "free money" that made it compelling earlier in life no longer applies.
• It stays at market risk. KiwiSaver is a long-term investment, not a savings account. The value can fall as well as rise, and you may get back less than you put in. Money you expect to spend within a few years generally sits differently from money you will not touch for a decade.
• Access is no longer a barrier. After 65 you can withdraw whenever you like, so contributing does not lock your money away the way it did before ⁸.

Some people keep contributing through PAYE because it is automatic and tidy; others would rather hold the money elsewhere or spend it. The decision turns on your wider plan — your other income, how long the money has to last, and your comfort with market ups and downs. This is general information, not a recommendation. To get advice tailored to your circumstances, book a conversation.

When does it make financial sense to keep working past 65?

The financial case for working past 65 is rarely about the Super, since you receive that either way. It is about what the extra income lets you do with the rest of your plan.

• It can delay drawing on KiwiSaver. If a wage covers your day-to-day costs, you may not need to touch your KiwiSaver yet, which leaves more of it invested for longer (with the usual caveat that returns are not guaranteed). For how to turn a balance into income later, see KiwiSaver drawdown options in retirement.
• It softens sequence risk. Drawing less from invested savings in the early years means a market dip early in retirement does less lasting damage to your balance.
• It is taxed at your marginal rate, not penalised. As the tables above show, the wage is taxed in the normal bands. Provided the codes are right, there is no clawback and no special penalty for working ⁴⁵.

There are non-financial reasons too — routine, purpose, social contact — that sit outside what an adviser can quantify. On the money side, the question is usually less "can I afford to stop?" and more "what does another year or two of part-time income do to the shape of my plan?" If you are still weighing the timing itself, our guide on when you can retire in NZ and the wider rules in NZ Super rates and eligibility are good starting points.

Frequently asked questions

Can I get NZ Super and a salary at the same time? Yes. NZ Super is based on your age and residency, not on whether you work, and it is not income-tested. You can draw Super and earn a full salary at the same time, and the wage does not reduce your Super ³.

Does my salary reduce my NZ Super payments? No. There is no income or asset test on NZ Super, so your gross entitlement stays the same no matter what you earn. What changes is the tax across your combined income, not the Super itself ³⁴.

What tax code should I use on NZ Super and my job? Generally you put the M code on your highest income (often the Super) and a secondary code (SB, S, SH, ST or SA) on the other, matched to the band your total income falls into ⁵. IRD's "Work out my tax code" tool confirms the right codes from your details.

Why might I get a tax bill at the end of the year? Usually because the tax codes did not match your total income and too little tax came out through the year — for example, Super left on M while the wage was on the wrong code. Because tax is progressive, all your income is assessed together, so correct codes are what avoid a year-end shortfall ⁴⁵.

Do I still get the government KiwiSaver contribution after 65? No. Eligibility ends once you qualify to withdraw at 65. Before then it is 50c per $1 you contribute, up to $260.72 a year if you contribute at least $1,042.86 yourself ⁶.

Does my employer still have to pay into my KiwiSaver after 65? No. Compulsory employer contributions stop at 65. Some employers keep contributing voluntarily, depending on your employment agreement, but they are no longer required to ⁸.

Smiths Financial is a trading name of Craig Smith Business Services Ltd (FSP712931), which holds a Class 2 financial advice provider licence issued by the Financial Markets Authority to provide financial advice on personal risk insurance, health insurance, general insurance, KiwiSaver and managed funds. Our advisers, Henry Smith (Financial Adviser) and Craig Smith (Principal Adviser), are bound by the Code of Professional Conduct for Financial Advice Services and the duty to give priority to clients' interests. Craig Smith Business Services Ltd is a member of the Financial Dispute Resolution Service (FDRS), a free and independent dispute resolution scheme. Our publicly available disclosure information is available free of charge on request and on the FMA Financial Service Providers Register at fsp-register.companiesoffice.govt.nz. To get advice tailored to your circumstances, book a conversation.

NZ Super rates, the qualifying age, residency rules and tax thresholds are set by the Government and can change. KiwiSaver is a long-term savings scheme; government contributions, contribution rates, withdrawal rules and tax (PIR) settings are set by the Government and can change. Figures are correct as at 5 June 2025. Check current rules at ird.govt.nz, workandincome.govt.nz, kiwisaver.govt.nz and sorted.org.nz, and the relevant scheme's Product Disclosure Statement. Returns are not guaranteed. The value of investments can go down as well as up and you may get back less than you invested. Past performance is not a reliable indicator of future performance. This article does not cover provisional tax, estate or legal matters — please consult an appropriately authorised professional where relevant.

Written by Henry Smith, Financial Adviser at Smiths Financial (FSP712931); reviewed by Craig Smith, Principal Adviser. Last reviewed 5 June 2025.