Latest news with #NewZealandSuper
The Spinoff
4 days ago
- Business
- The Spinoff
Why messing with NZ Super remains political dynamite
Universal super at 65 is increasingly unsustainable, but any attempt to change it will attract fierce political blowback. What's a government to do, wonders Catherine McGregor in today's extract from The Bulletin. No cuts to super – but everything else is on the table Last week's budget delivered a raft of cost-cutting measures, from halving the KiwiSaver member tax credit to tightening access to the Best Start payment. But superannuation was conspicuously untouched – a move that came as no surprise, given NZ First's long-standing defence of the universal pension. High-income earners who can no longer access the KiwiSaver contribution remain fully entitled to super, a benefit projected to cost nearly $25 billion this year and rise to over $45 billion by 2037. Critics have pounced on the apparent double standard, reports RNZ's Susan Edmunds. As economist Shamubeel Eaqub put it: 'It's incoherent … incentives for Kiwis to save for their future [are] means-tested, but New Zealand Super, which is universal welfare for older people, is untouched.' National's slow path to raising the age While ruling out means-testing, both prime minister Christopher Luxon and finance minister Nicola Willis have reiterated National's plan to raise the super age – eventually. The party's policy is to keep the current entitlement age of 65 until 2044, after which it will rise gradually to 67. No one born before 1979 would be affected. In the NZ Herald (paywalled), Fran O'Sullivan argues that such a distant target is little more than political theatre. She contrasts Luxon's timidity on the issue with former National PM Jim Bolger, who methodically raised the age from 60 to 65 over a nine-year period. O'Sullivan notes that Bolger 'managed to convince New Zealanders that a gradual increase … was plain commonsense' at a time when life expectancy was increasing. By contrast, today's leaders seem content to avoid political pain, she writes, even as super becomes an increasingly heavy burden on the budget. One millennial's wail of despair The idea of delaying retirement might make sense on paper – but it's enough to send some younger New Zealanders into an existential tailspin. Writing in The Spinoff this morning, Hayden Donnell delivers a howl of generational frustration: 'Millennials have spent their formative years selling kidneys to pay rent on a draughty villa and getting bullied by gen Z for admittedly being huge losers. They'll spend the next 20 helping fund their parents' generation's Mediterranean cruises. Surely after that they can have a break? I guess not.' Donnell's broader point is that policies like lifting the super age hit those with lower life expectancies and more physically demanding jobs hardest. And while life expectancy has barely moved in recent years – and is even declining in some countries – the financial squeeze on younger generations is intensifying, just as the likelihood of a guaranteed super at 65 starts to fade. Or, in other words: 'Come on man how much shit can people under the age of 40 have shovelled onto them from a great height god damn it christ on a bike argh argh argh no.' 'You can touch anything else. Do not touch my pension' Two of New Zealand's most prominent right-leaning commentators have also weighed in – and their take is not encouraging for National. In his Mike's Minute, Mike Hosking warned that voters' emotional attachment to super far outweighs any argument of fiscal prudence. 'For many, superannuation is untouchable. It's a lifetime's worth of work. 'I paid my taxes' they say, even though that line isn't actually real because we spent your taxes years ago and then borrowed a bit more to keep the lights on.' Hosking's Newstalk ZB colleague Heather du Plessis-Allan was even more emphatic: 'Don't touch my pension. You can touch anything else. Do not touch my pension.' Despite advocating for cuts to almost every other form of welfare, she drew a hard line at super, arguing that she and millions like her had earned it through years of tax contributions. 'So, good luck to Chris Luxon getting this one across the line,' she wrote. With opposition like that from his own ideological camp, Luxon may find that even floating the idea of reform is as far as it goes.
NZ Herald
27-04-2025
- Business
- NZ Herald
Workers in Northland struggle as wages lag behind living costs
Megan Hepi, who has worked in social services in Kaikohe for seven years helping whānau get jobs and access to services, said people were struggling on very low wages. 'People are working their hearts out. 'Everything has gone up - rent, food, everything - but wages haven't. 'They're living in situations that are not ideal ... unhealthy and unstable situations.' Hepi said it was whakama [embarrassing] for people to talk about having to move back with parents, with whānau, or seek alternative living arrangements. 'I've seen people who have worked all their lives forced to move into temporary accommodation.' The Northern Advocate recently revealed that landlords are exiting Northland's property market due to rising costs, while tenants are struggling to find affordable homes to rent. The median rent is now $585 a week in Northland. Hepi, now an independent contractor, said one woman on a sickness benefit pays $450 a week for a tiny flat, leaving her with $140 to scrape by. Some days, she can't afford food or to keep the lights on at night, Hepi said, and she has even resorted to asking strangers and friends for money. Hepi said many people don't have a driver's licence or cars, and getting jobs in nearby towns comes with hefty travel costs. 'It's extremely hard for some whānau here to get ahead.' Northland's population is now 194,007, 8.3% more people than 2018, according to Census 2023. About 89,520 people are in work. The top industries are construction, healthcare, retail, agriculture, forestry, fishing, education, and manufacturing. Only 11% of those working earn $70,001 to $100,000. Of the working population, 15% earn between $50,001 and $70,000, and a whopping 66% earn $50,000 or less. Why is Northland's median income so low? Infometrics principal economist and lead demographer Nick Brunsdon said the $33,100 takes into account income from everyone over the age of 15. That's a whole bunch of people in different circumstances, Brunsdon said. They include retirees on New Zealand Super, which is $20,000 each for couples and $32,000 for singles. Another category which makes up 6% of the figure, is no income at all. For example, 16-year-old high school students. 'There's quite a few people in those situations where they've got low income per person,' Brunsdon said. 'Job seekers are probably on around $20k or lower – in that situation that brings down the median.' Brunsdon said the percentage of people on unemployment benefits - including jobseekers, sole parents, and supported living - is higher in Northland: 29% compared to 20% nationally. Northland consistently has the highest proportion of its population on unemployment benefits. According to the Ministry of Social Development, 11% of Northland's working age population – that's 12,327 people - were receiving Jobseeker Support in February. Advertise with NZME. That's significantly more than the next-highest region, Gisborne, which was 9.4%. Brunsdon said another factor bringing down Northland's median income was that people who are in work earn about 12% less than the national average. While he couldn't pinpoint what types of jobs this relates to: 'We do know the nature of Northland's economy is more reliant on lower paying industries'. 'At the other end of the scale, Auckland and Wellington have a lot more higher paying industries like professional services, government, and finance.' Kaitāia Family Budgeting Services senior financial mentor Tania Sneddon said: 'The struggle is real'. Sneddon said there had been 'a huge increase' in KiwiSaver hardship applications, along with Good Shepherd loans aimed at helping people on limited incomes pay for essentials that improve their quality of life. 'There is no answer at the moment,' Sneddon said. 'The working poor are up there, the beneficiaries are there, but they have the option of asking for assistance. 'It's harder for the working poor purely because they may not be eligible for a loan or have family to help them.' Sneddon said some people were using Afterpay to buy essential items like petrol, food, and pet food. Her advice to struggling Northlanders is: 'Come and see us'. 'We're here to teach people to do this for themselves. 'We have people whose power is about to be disconnected, or their car dispossessed. 'The minute they start struggling, they should come and see us; it could be a simple conversation. We're here to help.' Jenny Ling is a senior journalist at the Northern Advocate. She has a special interest in covering human interest stories, along with finance, roading, lifestyle, and animal welfare issues.
