NZ Super Power

New Zealand Superannuation (NZ Super) is the government pension paid to Kiwis aged 65 and older.


Any eligible New Zealander receives NZ Super, regardless of:

  • How much they earn through paid work
  • Their savings and investments
  • Any other assets they own
  • What taxes they have paid.

NZ Super has been around in more or less its present form since 1938.  Nowadays, 40% of people aged 65 and over have virtually no other income besides NZ Super. And another 20% have only a little more. Even with NZ Super, close to 1 in 3 of us don’t think we’ll have enough for our retirement unless we continue working past 65. 

Aotearoa has an ageing population. In 2018, those aged 65 made up 15% of the population and by 2048 this is expected to hit around 25%. This means expenditure on NZ Super will increase as more people become eligible and we will want to continue to support our whanau, our volunteers, our babysitters and the rest of our everyday, older heroes during their retirement.  

NZ Super keeps a lot of people out of hardship and ensures we can still play valuable roles in our communities and for our whānau. And because we know we have the security of NZ Super, we can focus on just saving the amount we’ll need to add on top. 

Review of retirement income policies

As part of the three-yearly review of retirement income policies that’s underway we have been asked by the government to dig deeper into the adequacy of NZ Super for future retirees who are renting or do not own their home outright.  Growing numbers of older people are working longer because they still have mortgages to pay, are renters, or haven’t been able to save enough.

Should any changes be introduced in the retirement income system (such as the recent increase in time needed to be spent in NZ to be eligible for NZ Super), it’s important that they are based on a principled policy rationale that considers all the settings, and provides a long lead time to enable younger New Zealanders to adjust their financial pathway. Consulting New Zealanders is also important.

Got you thinking about your own retirement?

It’s never too late to start! We have some great tools, guides and blogs on Sorted to help you on your financial journey.