Thousands under 65 still receiving NZ Super despite rule change

About 3000 people receiving the pension are not yet 65. Photo / RNZ

By Susan Edmunds of RNZ

There are about 3000 people across New Zealand receiving NZ Super who are not yet 65 – and three of them are not even 30.

Before 2020, it was possible for someone receiving NZ Super to add a non-qualifying partner.

This gives each person a payment of $787.58 a fortnight.

The option was removed in 2020 but people who were already receiving the payment were allowed to remain on it.

Three are aged 25 to 29, six 30 to 34, nine 35 to 39 and 27 aged 40 to 44.

The number is rounded to the nearest three.

The bulk of the 3003 non-qualifying partners aged under 65 are between 60 and 64.

In 2019, there were 13,231 non-qualifying partners receiving the payment.

A Cabinet paper at the time of the change noted that the payment was income tested but there were no work obligations for either partner.

It said the change was made as part of a shift towards assessing the pension on an individual basis.

“Partners who are unable to access the NQP provision will continue to have access to the main benefit system – e.g. Jobseeker Support, Supported Living Payment or Emergency Benefit.”

But economist Shamubeel Eaqub said people who were in that position were worse off.

“Unemployment payments are a lot less than super payments.”

Infometrics chief forecaster Gareth Kiernan agreed there was potential inequity between someone who had qualified for the higher payment because of their older partner, and someone who had not.

A person on Jobseeker Support at half the couple rate would get $307.42 before tax each week, compared to $476.47 for the NZ Super recipient.

Any additional income earned by the couple would reduce the Jobseeker entitlement but not the NZ Super payment.

Kiernan said about 2.5% of people aged 60 to 64 were on Jobseeker Support. That was a total of about 7800 people in August, compared to 8139 for 55- to 59-year-olds.

At the time of the change, the Retirement Policy Research Centre said there could be problems for couples if someone who was under 65 had to stop work to care for an older partner but could no longer access the same support.

– RNZ