No change to NZ Super in Budget

The government’s decision to suspend automatic payments to the New Zealand Superannuation Fund does not affect New Zealanders’ fortnightly NZ Super payments.

The names may sound similar, but the New Zealand Superannuation Fund and NZ Super are quite different things.

What is the New Zealand Superannuation Fund?
The New Zealand Superannuation Fund is an investment fund set up to help pay for the expected increase in the cost of New Zealand Superannuation from around 2030. It has no impact on NZ Super payments today.

In the 2009 Budget the government announced it will not be making automatic annual payments to the New Zealand Superannuation Fund until the government accounts are next in surplus. This is not expected to be for at least ten years.

What is NZ Super?
NZ Super is short for New Zealand Superannuation, the state pension paid to most eligible New Zealanders when they turn 65.  Maximum annual after-tax rates for NZ Super are currently $16,169 for singles living alone and $24,876 for couples.

Current NZ Super payments are funded by taxation. They are not funded by the New Zealand Superannuation Fund.

The government has also reiterated that it had no plans to change the current age of eligibility for NZ Super, which is 65 years. Current payment levels would also be maintained.

Note that there is no ‘retirement age’ in New Zealand – there is no law to stop you working past age 65.

Find out more about NZ Super.

Published 29 May 2009