New Zealand Superannuation Fund

A A A

DEFINITION

A New Zealand government fund established in response to the projected increase in the cost of funding the New Zealand Superannuation (NZS) - the retirement benefit paid to all eligible citizens aged 65 and over - due to the country's aging population.

INVESTOPEDIA EXPLAINS

The fund was established in 2001 and is governed by a separate Crown entity called the Guardians of New Zealand Superannuation, which is overseen by a board selected by New Zealand's Ministry of Finance. It is a funded on a "pay as you go" basis, which means that the cost of paying NZS in any given year is paid from the taxes levied on incomes of the working population in that year. The fund's assets totaled $15.8 billion by May 2010, and its size is not projected to peak until 2056.


RELATED TERMS
  1. Reserve Bank Of New Zealand

    The Reserve Bank of New Zealand is New Zealand's central bank and its overall ...
  2. Superannuation

    An organizational pension program created by a company for the benefit of its ...
  3. Pension Fund

    A fund established by an employer to facilitate and organize the investment ...
  4. Kiwi

    A slang term for the New Zealand dollar (NZD). It derives its name from New ...
  5. Funded Status

    The status of pension plan that has accumulated assets that have been set aside ...
  6. Pension Risk Transfer

    When a defined benefit pension provider offloads some or all of the plan’s ...
  7. Leveraged Benefits

    The use – by a business owner or professional practitioner – of their company’s ...
  8. Peri-Retirement

    A term for the period of time leading up to actual retirement. Peri-retirement ...
  9. MyRA

    A new tax-advantaged retirement account that President Barack Obama introduced ...
  10. Provident Fund

    A compulsory, government-managed retirement savings scheme used in India, Hong ...
Related Articles
  1. Top 8 Most Tradable Currencies
    Forex Education

    Top 8 Most Tradable Currencies

  2. Weave Your Own Retirement Safety Net
    Retirement

    Weave Your Own Retirement Safety Net

  3. Get To Know The Major Central Banks
    Forex Education

    Get To Know The Major Central Banks

  4. Pension Plans: Pain Or Pleasure?
    Retirement

    Pension Plans: Pain Or Pleasure?

  5. Passing Boomers Will Leave A Big Economic ...
    Investing Basics

    Passing Boomers Will Leave A Big Economic ...

  6. Will I pay taxes on my Social Security ...
    Retirement

    Will I pay taxes on my Social Security ...

  7. Can I deduct my Individual Retirement ...
    Taxes

    Can I deduct my Individual Retirement ...

  8. Can I contribute to a Roth IRA and still ...
    Retirement

    Can I contribute to a Roth IRA and still ...

  9. At what age will I be eligible for the ...
    Retirement

    At what age will I be eligible for the ...

  10. Can I take money out of my Individual ...
    Retirement

    Can I take money out of my Individual ...

comments powered by Disqus
Hot Definitions
  1. XW

    A symbol used to signify that a security is trading ex-warrant. XW is one of many alphabetic qualifiers that act as a shorthand to tell investors key information about a specific security in a stock quote. These qualifiers should not be confused with ticker symbols, some of which, like qualifiers, are just one or two letters.
  2. Quanto Swap

    A swap with varying combinations of interest rate, currency and equity swap features, where payments are based on the movement of two different countries' interest rates. This is also referred to as a differential or "diff" swap.
  3. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered as a replacement to the more well known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account, but also adds other figures that represent the cost of the negative effects related to economic activity (such as the cost of crime, cost of ozone depletion and cost of resource depletion, among others).
  4. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  5. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
  6. Centralized Market

    A financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.
Trading Center