The NZ Super gamble: Kiwis grow concerned about means-testing and eligibility age

Monday, 9 February 2026

Retirement questions Answered: from time to time, we will pick a question sent in by a reader and offer a response from contributor Gill South. You can read more here and submit questions below.

If your generation is post-babyboomer (I’m a proud Gen X’er), many of us have a sinking feeling that the good old NZ Super isn’t going to be around as it is now, when we limp to the finish line of our working lives.

Many of us think that the pension might well be means-tested by the time we hit 65, (or will it be 67?) by some of the hints being made by political parties in this election year, although they know moving the bar on pensions is deeply politically unpopular.

In Aussie, the pension is means tested. A single person’s assets limit is A$321,500 for a homeowner, a couple’s combined assets limit is A$481,500, (this excludes the family home in most cases) while the income limit is A$218 per fortnight for a single person and for a couple up to A$380 combined per fortnight.

Quite a lot of older Aussies are getting a part pension because they fail the test but not by too much – and to be eligible for a part pension a single person’s assets cut off point is A$714,500 and a couple combined limit is A$1,074,000.

To get a real person’s perspective on this, I rang a relation in Aussie, *Sue, a retired university bursar who is all over this.

She and her husband collect A$1776 fortnightly and they have a small nest egg plus superannuation funds which they haven’t needed to access.

By comparison, on NZ Super, a single person gets $1034 after tax, and if in a couple, $828* each after tax or a total of $1658* combined.

In their 80s, my rellies who lead a quiet life, can easily live on the pension there, she says. And they get a lot of discounts on things like their council rates. She just paid her rates, A$1280 for the whole year !!! I can feel Wellingtonians wringing their hands with envy.

Speaking of hand-wringing, we had a question from a concerned reader in their mid-40s, who is thinking a couple of decades down the track and wondering if they should be saving more in the next 20 years because they don’t feel able to count on the Government looking after them with a pension.

I’m going to call this reader, *Rupert:

“I am concerned that when my generation, in their mid-40s, are at retirement age, we get to 65 and the state Super is no longer available like it is to the boomers. What should we be doing to ensure we can live our lives well now but also have a good retirement? We want a balance between a good life today and having a decent retirement.'

For this topic, I went to Dean Anderson, chief executive of Kernel, a digital platform which helps Kiwis grow their savings over the long term.

He was very upbeat about Rupert’s chances as a young whipper snapper in their mid- 40s. Anderson, himself, is even younger.

“This is actually Rupert’s “prime moment,” says Anderson.

In your mid -40s, you can still pull significant levers, to ensure you have plenty of choices in the future, while still enjoying your life today, he says.

Anderson doesn’t think the NZ Super will disappear in a puff of smoke as some of us fear but he thinks a lot of tweaks will be discussed in this upcoming election and says to keep a close eye on what is mooted.

He reminds us all that the NZ Super is fairly bare bones. It doesn’t offer much room for extras, he says, and let’s face it, we all quite like our extras.

If you’re lucky enough to still be in your mid-40s, Anderson recommends building enough private wealth so that you aren’t reliant on NZ Super.

“Think of NZ Super as your safety net for the basics, but your private savings as your “lifestyle engine,” he says.

If you want to do more than just survive, (yes please) you want to travel or maintain hobbies, you need to bridge that gap yourself, he says.

Rupert and others his age should be maximising their KiwiSaver (none of that default low or average fund malarkey)– Dean recommends opting for a higher growth fund that should deliver in the long run.

Another thing to do is build savings in more accessible funds beyond KiwiSaver, he suggests. Look at diversified managed funds or index funds. They have the same structure and growth potential as KiwiSaver but they’re more accessible if you need them before turning 65.

You want something where your contributions benefit from compounded returns over the next 20 years, he says.

And a big one for youngsters like Rupert, is to work hard at getting rid of debt.

In your 40s, the goal is to find the sweet spot between aggressive mortgage repayment and consistent investing, so you aren’t just house rich and cash poor later on, says Anderson. Yep, you don’t want to copy me, Rupert.

Being mortgage free by retirement is a massive psychological and financial win, adds Anderson, which makes me feel a wee bit better.

If Rupert and other youngsters in their 40s need a more firmed-up plan, they’re best to chat with a financial planner, Anderson says.

Hope that helps, dearest gentle reader (anyone else watching Bridgerton Series 4? A cash-strapped maid is the heroine, boy does she need personal finance help).

*Disclaimer: The information in this article is of a general nature and is not intended to be personalised financial advice. The names of the individuals in this story have been changed to protect their privacy. Correction: This article previously stated the allocation for couples was $963 each or $1926 combined. This data has been updated.

If you have a question you’d like answered, drop it in the document below. The more detail you provide (please don’t include personal banking information), the more likely it is that we’ll look into answering it.

Gill South is a freelance business writer who has authored a book on personal finance and written for many major publications in New Zealand.