RNZ's money correspondent Susan Edmunds. Photo: RNZ
Send your questions to susan.edmunds@rnz.co.nz
You mentioned in your article of 28 December about overseas pensions and the effect on our NZ pension. How does the Dutch pension affect our NZ pension?
If you're eligible for some overseas pensions, it can reduce the amount you get from NZ Super.
Payments from overseas can reduce your NZ Super entitlement on a dollar-for-dollar basis, and this can also have an impact on what your partner receives.
According to the government's website, to count as a pension that offsets NZ Super, the pension you're getting needs to be part of a programme providing pensions or benefits, cover something that NZ pensions and benefits cover, such as old age or disability, and be administered by or on behalf of a country's government.
One of the examples cited is Netherlands' Algemene Ouderdomswet (AOW).
If you're not sure whether your pension entitlement might be affected, it's probably best to talk to International Services at Work and Income.
I want to know how to prioritise what to do with money. I have privilege with a good income, but I own a house that I could put thousands into improving. I also feel like I work hard and should deserve family holidays, and we will need to replace our car soon, but I'd like it to be electric or at least hybrid. I don't know how to decide/organise what I should do and when. Can't do it all.
This is a hard one to answer because a lot of it will come down to what you value and think is important. Here are a few thoughts, though.
You probably shouldn't spend all your money only on things you think you "should" do, if it's not something you'll get any enjoyment out of because it will take the fun out of your life.
If you have a builder contact or someone you trust, I'd get them to look at what really needs to be done soon to stop the house falling into disrepair, so that you can budget to at least get that done.
Some house maintenance gets more expensive the longer you put it off, so it's a good idea to address anything that's becoming more of a problem. Then you can decide what beyond that you want to do - what would improve your enjoyment of your house, for example, or make it easier to live in.
You could set aside a savings account for a family holiday and have a goal amount that you save each month. It could be that you decide one year you'll have a cheap holiday and the next you'll spend a bit more.
As for the car, switching to a newer and more efficient vehicle should save you money, so it may provide some benefits as well as costs. As well as fuel, some older cars can end up costing more as they need more repairs. (I'm not a car person, though, so again - an expert could probably better advise you!)
You may also be able to qualify for cheap lending if you're looking at an electric vehicle, depending on your bank.
I think the answer here will come down to think about what gives you the best return - whether that's financial or just in fun times with your family. What makes you happy?
I would also urge you to have a bit of money available to you, whether that's in a savings account, or mortgage offset or revolving credit, as an emergency fund in case an unexpected expense pops up just as you decide to go for that family trip. You might also think about increasing your investments, to give you more options in the future.
What's the single best thing I can encourage my teens with their first real jobs to do to set themselves up?
I would encourage them to set up a savings habit right from the start. It's a lot harder to start saving in future when you've become used to having a certain amount of money available to spend.
You could encourage them to put money aside every payday.
It makes sense that at least some of it is in KiwiSaver so that they get the benefit of any employer contributions and the government's member tax credit, but if they want to save for something other than a first home, they might want to set up another savings account elsewhere, too.
Would I save money if I got a smaller house? And could I retire earlier?
This is another tricky question to answer without knowing the specifics.
When I have looked at "downsizing", the data has indicated that it's often harder than people think to find a suitable house to downsize to.
If you can sell your house and find an apartment in your area for less, for example, you might be in a better financial position.
If it meant you could clear your debt earlier and put more into investments, you could be able to retire sooner.
But it seems that often people find that the apartments they like, for example, aren't that much cheaper than their houses - and there's the cost involved in selling and getting a new place ready to live in, which could erode your capital.
As people get ready for retirement, they often also want to stay in the areas where their networks and connections are.
You might be best to go to some open homes for cheaper, smaller houses around you, and ask a real estate salesperson for an appraisal of your place.
That might help you get a sense of what your options might be and how much equity you could be able to free up.
I want to draw money out from my KiwiSaver (Fisher Funds) and want to know the best way or what you think is feasible.
I want to apply for financial hardship or compassionate grounds. We lived in Australia for 10 years but came back 2017 because my father fell ill and was told he only had days to live. Everything started going downhill around the Covid lockdown era in 2020, with my wife not working, kids' schooling and only making ends meet with what she was receiving through subsidy. I was an essential worker so we were surviving.
In late 2020 we started going into arrears with the house and bills. In May 2021, I collapsed at work with a spinal infection. I was off work for six months.
In October, we lost the house and my wife and kids split up to our family homes. At present, we are still living apart. In February 2023, I was assaulted while at a work conference in Queenstown. It has been hard living on 80 percent wages from ACC, but I'm thankful to God I'm alive. One thing I made a priority was paying the bills.
I just want to be a whole family again. I am hoping to be able to withdraw $30,000. That will get family into a house (renting), pay moving-in costs and a bit more in advance. Buy whiteware, furniture etc. Also I really need a new car too. (edited for length)
You've had a really tough few years, I'm sorry. I totally understand why you want to find a home and get your family living together again.
The rules around financial hardship withdrawals can be quite stringent, though, and it's possible that your efforts to keep on top of your bills could actually count against your withdrawal.
I asked Rupert Carlyon, who is founder of Koura KiwiSaver, what he thought of your situation.
He said it did not sound like you would meet the financial hardship criteria because you're not behind on your bills or unable to pay debt.
But he said it would be worth you talking to Fisher Funds to see what they think. "They will be the ones that determine whether it is hardship or not."
You could also talk to the Ministry of Social Development about what help there might be for you. It offers a bond grant, and you don't need to be on a benefit to qualify.
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