6 surprising benefits of New Zealand Superannuation  

New Zealand’s superannuation scheme offers more than mere money - here are 6 other surprising benefits of our universal superannuation payment.
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By Alex Brooks

Did you know that New Zealand - along with Germany and Denmark - were the first countries in the world to provide an old age pension to prevent older people becoming destitute?

New Zealand's Superannuation is more than a retirement payment - it offers a range of surprising perks that make retiring in our country truly unique.  

NZ Super pays couples 66% and singles 40% of average wage 

New Zealand superannuation - known as NZ Super - is a symbol of the land of the long white cloud’s promise to its older generation. 

It’s available to everyone who is 65 or older and it means New Zealand’s older age poverty rate is lower than our neighbour, Australia, according to OECD pension reports.
Unlike many countries, NZ Super is not asset tested so eligible people can get the fortnightly payment of between $563.24 up to $1,034.24 for the rest of their life. Bonus!

There is plenty of discussion about how adequate NZ Super payments are when health and housing costs in big cities like Auckland and Wellington are sky-high, but its universal access means it offers every person - regardless of gender, marital status or wealth - a basic level of financial security that’s tied to wage growth.

The biggest bonus is that no matter how pumped your KiwiSaver, investment portfolio or property value is, everyone has the ability to use NZ Super as a main or secondary income as they age.

Depending on your financial circumstances, older people can access other New Zealand government benefits like:

• Accommodation Supplement
• Disability Allowance
• Winter Energy Payment
• Special Needs Grant
• Temporary Additional Support
• Advance Payment of Benefit
• Recoverable Assistance Payment
• Community Services Card
• SuperGold Card

If you’re a veteran, you might qualify for the Veteran’s Pension instead of NZ Super. You can call the NZ Government Seniors line on 0800 552 002 to find out more.

NZ Super is backed by ‘sovereign wealth’ to invest sustainably  

Nearly every country in the world is worried about the ageing population and financial sustainability of pension schemes like NZ Super. 

Our country got smart about it and created an independent sovereign wealth fund - sometimes called the Cullen Fund - to invest in New Zealand and overseas opportunities. 

As of 31 May 2024, the NZ Super fund returned an average 9.9% before tax growth rate and is worth $75.1 billion. Not bad, for a little country with 5.3 million people (and better than Australia’s Future Fund, which had an average 8.6% 10-year return).

Our fund sticks to responsible, ethical and sustainable investments that adhere to the Principles for Responsible Investment, investing in things like renewable energy and affordable housing for New Zealanders.

NZ Super is more than a payment for older people, it’s a reflection of New Zealand’s values which say society has a responsibility to care for people who have contributed to it and that everyone deserves dignity (no matter what numbers on a balance sheet say).  

You can collect NZ Super and keep working - so make like Nike and just do it 

Work has plenty of benefits, alongside the income it gives you. Work helps you stay socially and mentally connected, and avoid the health issues that can plague people who mistakenly believe a life of golf and long holidays is what retirement should be about.

New Zealand doesn’t have an official retirement age, and there’s lots of evidence to say older New Zealanders are the hardest working bunch of people in the world. 

The Te Ara Ahunga Ora Retirement Commission says nearly one-quarter of people over 65 work in this country compared to 12% in Australia. 

Around 44% - or nearly half - of New Zealanders aged 65 to 69 hold down jobs. You’ll be taxed differently on NZ Super payments if you keep working, but the monetary and emotional benefits might just make it worth it.

You can get NZ Super when you travel

Kiwis are inveterate travellers, and NZ Super recipients can travel overseas for up to 26 weeks while still receiving their payments.

There are rules and residency requirements to get NZ Super, so check carefully so you don’t accidentally get overpaid. 

To qualify for NZ Super, you have to live in New Zealand, Cook Islands, Niue or Tokelau for at least 10 years after the age of 20, though this required time is gradually increasing from 10 to 20 years. 

If you turn 65 after 1 July 2042, then you’ll need to have lived here for longer to qualify for NZ Super.

Read more about the Social Security Agreement New Zealand has with Australia and receiving NZ Super while overseas.

Wait! If you can’t get NZ Super, there’s more …

New Zealand is a fair and generous country, so even if you don’t qualify for NZ Super you might be able to access other helpful retirement support like: 

• publicly funded health treatments if you have an accident, need prescriptions for medicine or have to go to a public hospital,
• help with housing costs and rent (and maybe even rates payments). You might also want to check if your local council or public housing can help, too,
• insulating and heating grants for eligible people to pay up to 80 to 90% of the cost to make your house warmer,
• free financial mentors who can help get you out of hardship and sort your day-to-day spending.

NZ Super gets better if you contribute to KiwiSaver, too

Your NZ Super benefits become exponentially better if you have somehow managed to take advantage of the tax credits and other benefits of KiwiSaver.

“I would say to anybody though before they retire, make sure to take advantage of the KiwiSaver and put as much as you can into it because you’re going to appreciate it when you do retire,” said one retired person to the Ipsos researchers who did extensive work for the Retirement Commission.

Improving your financial literacy - and knowing how to cut down on expenses - become important tools that work hand in hand with receiving NZ Super. Try using Sorted’s retirement calculator to check you’re on track for the retirement you want.

Flexible retirement plans, phased withdrawals from KiwiSaver, and support to keep working or volunteering help NZ Super become more than just a fortnightly payment.

This article reflects the views and experience of the author and not necessarily the views of Citro. It contains general information only and is not intended to influence readers’ decisions about any financial products or investments.  Readers’ personal circumstances have not been taken into account and they  should always seek their own professional financial and taxation advice that takes into account their personal circumstances before making any financial decisions.