The National Government and it's coalition's latest policy announcement reveals a striking contradiction in how New Zealand treats different generations when they need social support. While 18-19 year olds will soon face means-testing based on their parents' income to qualify for Jobseeker Support, nearly one million New Zealanders over 65 receive universal superannuation regardless of their wealth, income, or family circumstances. A quarter of those are still working and earning a median salary above the minimum wage.
New Zealand's Ageing Population:
Roughly $5 billion annually in superannuation goes to people who are still earning employment income. This is roughly equivalent to the government's entire annual spend on Working for Families tax credits (Best Start, Family Tax Credit, In-Work Tax Credit, and the Minimum Family Tax Credit—total approximately $5.4 billion per annum (Joint Report T2025/480: Working for Families – Budget 2025)) benefits which are all means tested.
This highlights the hypocrisy and scale of "double-dipping" where working seniors receive both wages and full universal pension benefits, while the government simultaneously means tests support for low income families and restricts support for unemployed young people in an economy that doesn't have enough jobs to fill. They'll be looking for jobs in Australia where, unlike New Zealand, their pension is fully means-tested based on income and assets.(Retirement.govt.nz: Who does it better?; **NZIER Working Paper (PDF)**