Specialist Resources for Doctors
Background information on more complex or less familiar arrangements that some doctors encounter during their careers.
Financial arrangements doctors commonly encounter
The arrangements below are ones we commonly see among doctors during their working lives. They are often more complex or less familiar than everyday banking or investing, and they tend to matter most when different pieces need to work together. Understanding how these arrangements operate can make financial decisions easier and reduce unnecessary friction over time.
1. National Provident Fund and Pension National Scheme
2. Smoothing cashflow using AIM (for doctors in private or mixed practice)
3. Your 6% / 6% superannuation entitlement does not have to be split
4. UK pension transfers
- The type of UK pension matters
- Changes effective from 1 April 2026
- Why this matters
4. US University retirement plans (TIAA and similar schemes)
5. Australian superannuation
6. Other overseas pensions and retirement savings
National Provident Fund and Pension National Scheme
Doctors who have built up benefits in the National Provident Fund or Pension National Scheme often discover, close to retirement, that they are faced with a set of decisions that cannot be changed once made.
When you come to access your NPF benefits, you are not simply choosing when to start receiving income. You are choosing how that income will be structured, and what happens to the remaining value if you die.
Depending on your particular scheme and membership history, your entitlements may take the form of a pension, a lump sum, or a combination of the two. The options may include taking a pension for life, capitalising part or all of your benefit where that option exists, or choosing a pension that is shared with your spouse or partner in different formats. In some cases, if you take a pension in your own name and die earlier than expected, no remaining value is paid to your spouse. In others, a joint or survivor pension reduces the income you receive during your lifetime in exchange for ongoing payments after death.
These rules are specific to each scheme and are set out in the trust deed and scheme booklet, including any amendments that apply to your membership. They are not intuitive, and they are not the same across all NPF schemes. Understanding them matters, because once you make your election it is generally irrevocable.
A further complexity is the way lump sums work. Outside of capitalisation options, most schemes do not allow partial withdrawals. At the decision point, you are typically choosing between a pension, or a lump sum that is then invested elsewhere, or a combination where that option exists. There is no ability to revisit that decision later and take “a bit more out” if circumstances change.
The guaranteed nature of NPF returns can be attractive, particularly in uncertain markets. That guarantee, however, does not remove the need for planning. At retirement, you still need to decide where your spending will be funded from, how different income streams interact, and how flexible you want your assets to be over time.
Another element that is often overlooked is reserves. Depending on when you access your NPF benefit, reserves credited to your account can materially change the value available to you. In some circumstances this can make NPF an excellent addition to your overall retirement assets. In others, the trade-off between certainty, flexibility, and long-term value needs to be weighed carefully.
It is also important to be aware that the Pension National Scheme is being wound up, with assets transferring to another scheme from 31 March 2026. While member entitlements are protected, this change adds another layer of timing and structural considerations for those approaching retirement.
In practice, the right approach depends on:
the specific rules of your scheme
your health and family circumstances
the role NPF plays alongside KiwiSaver and other investments
how much flexibility you want over time
This is one of those areas where understanding the documents is only the starting point. The real work is in understanding how the rules apply to your situation, and what trade-offs you are making when you choose one option over another.
These arrangements rarely sit in isolation. Where they apply, we look at how they interact with KiwiSaver, other investments, income planning and the timing of retirement decisions
Smoothing cashflow using AIM (where private practice income is involved)
Doctors who operate in private or mixed practice often find that the challenge is not just earning income, but managing the timing of tax payments alongside irregular or lumpy cashflow.
In recent years, we have seen more clients caught out by unexpectedly large end-of-year tax bills. Often this has not been because income was unusually high, but because different income streams interacted in ways that were not fully anticipated. For many people, tax has historically been dealt with after the fact, rather than planned for as income is received.
One practical approach we often encourage is separating money that is earned from money that is already spoken for. Where a client has a private business, this usually means setting up separate bank accounts for GST and for tax, and transferring money into those accounts as income is received or on a regular monthly basis. This can make a material difference to how manageable tax liabilities feel over time.
Where income flows through a company and is later distributed as dividends to individuals or a trust, an additional layer is introduced. In those cases, we often see value in a separate account to provision for the tax arising on distribution, so that the eventual liability is not competing with day-to-day spending or investment decisions.
For some clients, using the AIM provisional tax method has been a useful extension of this approach. Under AIM, tax is paid more frequently, typically alongside GST filing, rather than through the traditional provisional tax instalments. This means tax liabilities are recognised and paid as income is earned, rather than accumulating quietly in the background.
There is a trade-off. Money paid earlier is not sitting elsewhere while it waits for the usual provisional tax dates. For some people that will matter. For others, the benefit is predictability. Cashflow becomes smoother, the end of the year is less fraught, and large surprises are less likely.
In our experience, this approach suits doctors who value certainty and who prefer to know that tax obligations are already dealt with. It is not for everyone, and it does require good systems and coordination with your accountant.
We are not accountants, and this is not tax advice. Our comments are based on our own experience and what we have seen work for some of our clients. Whether AIM is appropriate depends on your structure, income mix, and personal circumstances, and should always be confirmed with your accountant.
Where it does apply, AIM can be a useful tool in making cashflow more predictable and reducing stress around tax, particularly when combined with clear separation between business income, tax obligations, and long-term investment planning.
As with many of the arrangements on this page, the real benefit comes from understanding how the mechanics work and deciding whether they fit the way you want your financial life to run.
Your 6% / 6% superannuation entitlement does not have to be split
Many doctors are told that if they contribute 6% of their income to superannuation and receive a matching 6% employer contribution, those contributions must be split across different schemes — with only a minimum amount allowed into KiwiSaver and the balance required to go into a separate legacy superannuation plan.
That is not correct.
Provided the fund you choose is a complying superannuation fund, you can direct your full personal contribution into KiwiSaver and still receive the full matching employer contribution. You do not have to split contributions across multiple schemes unless you choose to do so.
The confusion usually arises because many employer superannuation arrangements pre-date KiwiSaver. Legacy schemes such as those offered through the Medical Assurance Society, the New Zealand Retirement Trust, and similar workplace plans were once the default option and are still referenced in some employment agreements.
These schemes continue to exist, and for some people they may still play a role. However, participation in a legacy scheme is not a requirement in order to receive employer contributions, and it is not necessary to split contributions unless there is a specific reason to do so.
Doctors in these legacy arrangements should keep a few points in mind.
You can choose where your employer contributions go. If you prefer to direct both your own and your employer’s contributions into KiwiSaver, that is generally permitted so long as the fund qualifies as a complying superannuation fund and the employment agreement allows for that choice.
Matching employer contributions still apply. Under many collective agreements, employer contributions of up to 6% are paid when you make a corresponding personal contribution. Choosing KiwiSaver rather than a legacy superannuation scheme does not, in itself, remove that entitlement.
Employer superannuation contributions are generally subject to employer superannuation contribution tax (ESCT), which is deducted by the employer before the contribution is paid into KiwiSaver or another complying superannuation fund. This is separate from your personal income tax.
Legacy superannuation schemes persist because they pre-date KiwiSaver and were once the standard way for employers to provide retirement savings. However, they can differ from KiwiSaver in important ways, particularly around fees, investment choice, and the transparency of performance information. In practice, this information can be difficult to obtain or compare on a like-for-like basis.
When we work with doctors who have been contributing to multiple schemes by default, it is often worth stepping back and reviewing whether that structure still makes sense. In many cases, simplifying contributions into KiwiSaver can reduce complexity while still maintaining appropriate diversification through the underlying investments.
The right approach depends on your broader financial plan and should be reviewed periodically as your circumstances change.
UK Pension transfers
Some doctors who have worked in the UK will have built up pension entitlements there. Deciding what to do with those UK pensions is an important part of planning your financial future, but it is not a simple ‘move and forget’ decision. Rules around UK pensions and transfers to New Zealand are complex, change regularly, and require expert, up-to-date advice.
We do not provide UK pension transfer advice. We are happy to refer you to a specialist who focuses on this area, because the rules and consequences are specific and technical.
The type of UK pension matters
UK pensions are not all the same, and the type of scheme you belong to makes a significant difference to whether a transfer should even be considered.
Some UK pensions provide a guaranteed income for life, usually based on your salary and years of service. These are often referred to as defined benefit or final salary schemes. Others are built up through contributions and investment returns, with no guaranteed income level, and are commonly described as defined contribution schemes.
This distinction is important because a defined benefit pension can represent a valuable, inflation-linked income stream that is difficult to replicate elsewhere. Transferring out of this type of scheme usually means giving up those guarantees in exchange for flexibility and control, which may or may not be appropriate.
Defined contribution pensions tend to be more portable, but they still come with their own tax, timing, and regulatory considerations.
Understanding which type of scheme you are in is a necessary first step before thinking about any transfer.
Transferring to New Zealand
To move a UK pension to New Zealand, the transfer must generally be to a Recognised Overseas Pension Scheme (ROPS or QROPS) — a scheme that the UK tax authority (HMRC) recognises as eligible to receive transfers.
It used to be possible in some circumstances to transfer UK pension money into KiwiSaver, but current law does not allow UK pensions to transfer directly into KiwiSaver.
There are specific tax rules around pension transfers in New Zealand. If you transfer your UK pension within a certain period after becoming a New Zealand tax resident (typically within the first four years), the transfer may not attract New Zealand tax. If you transfer after that period, you may need to pay tax on the transfer value under New Zealand tax rules (and these rules are changing from 1 April 2026).
Staying in the UK scheme
You do not have to transfer a UK pension. If you leave it in the UK and draw it down from there when eligible, you may continue to receive income. There are tax implications on that income in New Zealand depending on your residency status and double-tax agreements.
For defined benefit schemes in particular, a strong argument can sometimes be made for leaving the pension in place and taking the benefit as an income rather than transferring, because the guarantees in the original scheme are often valuable and not readily replicated elsewhere. Whether this is appropriate depends on your situation, tax residency, and the terms of the specific scheme.
Tax and other consequences
A few practical points that regularly arise:
Taxation in New Zealand: A transfer can be tax-free if done in the early years of New Zealand residency, but transfers outside this window generally attract New Zealand tax based on valuing the pension and applying either the Schedule or Formula Method.
Scheme and UK tax rules: Transferring to a scheme that is not approved by HMRC can trigger very high tax charges (for example, 55% on unauthorised payments).
Future portability: Once you transfer out of a UK scheme, you generally cannot transfer back into the same UK plan, even if you return to the UK later.
Timing of access: UK pensions often allow income withdrawal from around age 55 (increasing to age 57 for those who reach that age after April 2028), but rules vary.
Changes effective from 1 April 2026
From 1 April 2026, New Zealand’s tax rules for overseas pension transfers will include a new optional tax payment mechanism that can make it easier for some people to manage the tax arising on a transfer of a UK pension to a New Zealand scheme.
Under the current rules, tax on a transfer that is not exempt (for example, outside the four-year transfer window for new residents) is generally calculated under the Schedule or Formula methods and added to your New Zealand income tax return, meaning it is taxed at your marginal rate. After 1 April 2026, there will be an additional option:
A flat tax rate of 28 percent will be available on eligible transfers to a New Zealand recognised overseas pension scheme.
The receiving scheme can withhold this tax and pay it directly to Inland Revenue under what is commonly referred to as a “scheme pays” or Transfer Scheme Withholding Tax (TSWT) option.
This option is optional, not automatic: if you or your adviser elect not to use it, the old calculation methods remain available.
The practical impact is that for many people — especially those with higher marginal tax rates — the new flat 28 percent option may provide greater certainty and simplicity in calculating and settling the tax on a transfer, and can be done directly through the pension scheme rather than waiting for an annual tax return.
That said, the overall tax outcome will still depend on factors such as your New Zealand tax residency history, the value and type of pension being transferred, and your personal tax situation. Deciding whether to use the new flat rate option, an older method, or not to transfer at all remains a nuanced decision that benefits from specialist advice.
Why this matters for doctors
The 28 percent flat option brings more predictability, especially for higher-income earners who might otherwise face tax at marginal rates up to 39 percent.
It formalises an election process: your specialist adviser and the receiving scheme must make the election on your behalf.
Alongside the existing four-year tax-free window for new tax residents (still relevant in many cases), this change gives another lever in timing and tax planning
Why specialist advice matters
Rules change often — for example, new transfer tax options come into effect from April 2026 that may allow tax on eligible transfers to be withheld at a flat rate by the receiving scheme rather than paid personally.
Because of this complexity, and because the tax and retirement income consequences of any transfer will vary based on your tax residency, scheme type, personal goals, and timing, we recommend seeking expert advice from someone who specialises in UK-NZ pension transfers before making any decisions.
We can refer you to someone with that expertise if you need it.
Why this matters This decision is not just about moving money. It involves trade-offs between guaranteed lifetime income, tax treatment, currency exposure, scheme rules, and longer-term financial planning considerations. Approached well, it can support a broader plan. Approached without specialist input, it can inadvertently reduce benefits or trigger unnecessary tax.
We do not provide UK pension transfer advice ourselves. Where a transfer is being considered, we work with a specialist adviser who focuses specifically on UK–New Zealand pension transfers.
In practice, we usually start by understanding how a UK pension fits alongside your other assets, income, and retirement planning. If specialist transfer advice is needed, we can then coordinate that input as part of the wider picture.
US University Retirement Plans (TIAA and similar schemes)
Doctors who have worked or taught in the United States often have retirement savings through a university plan. These are commonly 403(b) or 401(a) arrangements and are frequently administered by providers such as TIAA.
These plans are often well-designed and can represent a meaningful part of long-term retirement assets. They can also be difficult to navigate from New Zealand, both administratively and from a planning perspective. The key decisions tend to centre on how and when benefits can be accessed, and how those choices interact with New Zealand tax rules and the rest of your financial position.
When it comes time to access these plans, members are usually choosing between receiving an income stream, taking a lump sum where permitted, or a combination of options depending on the specific contract and plan history. As with other overseas retirement arrangements, the form in which benefits are taken matters. Income payments and lump sums are treated differently, and once an election is made it is often difficult or impossible to change later.
A further layer of complexity is that not all US university retirement savings are equally flexible. Some TIAA arrangements, particularly older or more traditional contracts, can restrict how funds are withdrawn or transferred, sometimes requiring payments to be spread over time rather than taken all at once. This can affect both cashflow planning and how the asset fits alongside other retirement income sources.
From a New Zealand perspective, overseas retirement plans do not sit outside the tax system. The treatment can depend on how the plan is structured, how long you have been back in New Zealand, and whether benefits are taken as income or as a lump sum. This is not an area where assumptions are helpful. Getting the structure wrong can have long-term consequences.
In practice, these decisions should not be made in isolation. A US retirement plan needs to be considered alongside KiwiSaver, other investments, expected income needs, currency exposure, and how much flexibility you want over time. For some people, retaining an income stream can make sense. For others, bringing funds into a more flexible structure may be appropriate. The right answer depends on the details.
These plans are often sound, but the rules are rarely intuitive, particularly once viewed from New Zealand.
We do not act as US pension transfer specialists or provide US tax advice. What we do is help clients understand how these plans work in practice, interpret the documentation they receive, and think through the implications of different options in the context of their wider financial plan.
In many cases, the most valuable work is clarifying what choices actually exist, what is fixed by the plan rules, and how those decisions interact with New Zealand tax, other investments, and retirement income planning. Where additional specialist input is required, we factor that into the overall decision-making process rather than treating the US plan in isolation.
Australian Superannuation
Doctors who have worked in Australia often have superannuation balances there. Unlike most other overseas retirement arrangements, Australian superannuation can generally be transferred into KiwiSaver, subject to the rules of both the Australian fund and the receiving KiwiSaver provider.
In practice, the experience can vary. Australian super providers are not required to make transfers straightforward, and some are slower or more difficult to deal with than others. We have found that outcomes depend as much on the receiving KiwiSaver provider’s systems and experience as on the Australian fund itself.
The main reason people choose to transfer Australian super into KiwiSaver is simplicity. Having retirement savings in one place can make ongoing management easier, reduce administrative friction, and improve visibility when reviewing your overall financial position.
That said, Australian superannuation can include insurance benefits, such as life or income protection cover, which may be lost on transfer. Before proceeding, it is important to understand what cover exists, whether it is still relevant, and whether suitable alternatives are already in place or needed. In some cases, retaining Australian superannuation, or maintaining a continuation option, may make sense as part of a broader plan.
As with other overseas arrangements, the decision to transfer should be made in the context of your full financial plan, rather than as a standalone transaction.
Other overseas pensions and retirement savings (not Australia, UK or US)
Doctors who have worked outside New Zealand may have retirement savings or pension entitlements in countries other than the UK or the United States. These can arise from earlier training roles, research positions, humanitarian work, or time spent overseas before returning to New Zealand.
While the details vary by country, the same broad issues tend to arise. Most overseas retirement arrangements involve a choice, at some point, between taking income, accessing capital, or leaving benefits in place. The rules around when benefits can be accessed, whether they are paid as a pension or a lump sum, and what happens on death are set by the original scheme and are often difficult to change once a decision is made.
From a New Zealand perspective, overseas pensions and retirement savings do not sit outside the tax system. How they are treated can depend on factors such as how long you have been resident in New Zealand, how the overseas scheme is structured, and the form in which benefits are taken. Income streams and lump sums can be treated differently, and assumptions based on how things worked overseas are not always reliable.
Another common issue is fragmentation. Overseas retirement savings are often relatively small on their own, but meaningful when viewed alongside KiwiSaver, New Zealand investments, and expected retirement income. Left unattended, they can add administrative burden and uncertainty. Considered properly, they can play a useful role in a broader plan.
In practice, the first step is usually understanding what you actually have. That often involves tracking down documentation, confirming current values and access rules, and identifying whether the scheme offers flexibility or imposes restrictions. Only once that picture is clear does it make sense to think about whether to leave an arrangement in place, draw income from it, or integrate it with other assets over time.
We do not provide country-specific pension advice for every overseas jurisdiction. What we do is help clients understand how overseas retirement arrangements fit into their wider financial planning, identify the key decisions that matter, and factor those into a coherent plan alongside New Zealand assets and income. Where specialist advice is required, it is approached as part of that wider context rather than as a standalone transaction.
As with many of the arrangements on this page, the value lies less in finding a perfect answer and more in avoiding poor ones. Understanding the rules, the trade-offs, and how different pieces interact can make financial life simpler and reduce the risk of unintended consequences later on.
These resources are intended to help doctors understand more complex arrangements they may encounter. Where advice is needed, we work through how these pieces fit together in practice.
Moneyworks NZ Ltd
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