NZ Superannuation:
Plato said “Wise men speak because they have something to say; fools because they have to say something”. Is there something in the air, with numerous commentators currently having their say on New Zealand Super , many from platforms of perception, vague knowledge, and little research awareness?
NZ Super is a big-ticket item, but it’s also recognized internationally as excellent public policy, simple, effective, and efficient with all those in receipt being taxed on their allotment. In comparison, with most OECD countries retirement schemes its cheap. No alternative scheme has emerged, except for Dr Claire Dale and Susan St John “Basic income proposal.”
Red herring comparisons with Australia appear in the mix, these are silly and unrealistic, who could possibly want to re-create the complex and flawed Australian policy, and one or two well-meaning voices want to convert the voluntary Kiwi Saver supplementary retirement income scheme to replace NZ Super. Wacky!
Today’s younger people may need NZS more than older generations. Although younger people will be able to be in KiwiSaver for longer, they may have less potential to both own a home and save.
Currently 40% of NZ over 65 years rely solely on NZ Super, and indicators do not see that percentage changing much over the next 3 decades. There are many other areas to gain revenue for shortfalls in Government expenditure, beginning with a full Capital gains tax, inheritance, land and wealth tax combinations, a rise in GST user pays, congestion tax and other examples taken from the last 2 Working Party on Tax reviews.
Never much traction on the above topics, the rich and powerful and the lobbyists marching in formation to quickly close down the focus and discussion instead some want to pull down or alter great retirement income Policy, the twin schemes of Kiwi Saver/NZ Superannuation.
The risk of such commentator indulgence is to increase poverty, increase the gap between the wealthy and poor (ignored within the 2025 latest Long-Term Fiscal Statement (LTFS) from Treasury) a surge in accommodation allowance applications , hardship grants, social welfare benefits e.g. unemployment , and the likelihood of unintended costs arising from the consequences of very likely poor re-placement Policy. The negative impact on Māori and women is also a very significant issue. disproportionately impacting women and Māori due to lower lifetime savings, gender pay gaps, and lower life expectancies.
Critics of NZ Super and Kiwi Saver, are silent on the research findings, that regularly emerge from the Retirement Commissioner or the NZ Society of Actuaries findings. New Zealand Parliament has a history of poor policy decisions on big ticket items, e.g. Inter-Island Ferries, Three Waters, so be very wary of the unhelpful fascination with NZ Superannuation.
Instead ring out the applause and recognize we are the smart country!
Alec Waugh MPP/BA
Editor www.kaspanz.com
Research Associate, Pensions, and Intergenerational Equity (PIE) research hub
March 2026.
027 2111479