When you hear the word pension, you probably imagine a steady paycheck that lasts until you die. That’s the promise. But is it really that simple? In New Zealand, the answer isn’t just yes or no-it’s layered, conditional, and tied to rules most people never fully understand.

What is New Zealand’s pension?

In New Zealand, the state pension is called Superannuation. It’s not something you save for yourself like a 401(k) or private pension. It’s a government-funded payment made to eligible residents once they turn 65. You don’t need to have worked a certain number of years or paid in taxes to qualify. You just need to be a legal resident who’s lived in New Zealand for at least 10 years since turning 20, with five of those years after turning 50.

As of January 2026, the rate is $517.73 per week for a single person living alone, and $391.81 per week for each person in a couple. These amounts are adjusted twice a year based on inflation. The money comes from general tax revenue-not your personal contributions. That’s why it’s often called a pay-as-you-go system: today’s workers fund today’s retirees.

Does it last forever?

Yes. Once you start receiving Superannuation, it continues for as long as you live. There’s no expiration date. No cutoff at age 85, 90, or 100. Even if you live to be 110, you’ll keep getting paid. That’s the lifelong part.

But here’s the catch: it’s not guaranteed forever in every sense. Your payment can stop if your circumstances change. For example:

• If you leave New Zealand for more than 26 weeks, payments pause. You can restart them when you return, but only if you meet residency rules again.
• If you’re imprisoned, payments stop during your sentence.
• If you’re declared bankrupt, your Superannuation is protected-it can’t be taken by creditors.
• If you’re receiving other government income support, like Disability Allowance, your Superannuation might be reduced or replaced.

Death is the only true end. Payments stop the day you pass away. There’s no lump sum payout to your estate, and no ongoing payments to your spouse or children-unless they qualify for their own benefit, like the Supported Living Payment.

What about private pensions?

Superannuation isn’t your only retirement income. Many people also have private pensions, KiwiSaver accounts, or investment portfolios. These work differently.

KiwiSaver, for instance, is a workplace savings scheme. You contribute, your employer contributes, and the government gives you a small kickstart. When you turn 65, you can withdraw your KiwiSaver balance as a lump sum, or set up regular payments. These aren’t guaranteed for life unless you choose an annuity-which most people don’t.

Private pensions from employers or insurance companies can be structured as lifetime payments. But they’re not automatic. You have to buy them, usually with a lump sum from your savings. A lifetime annuity will pay you every month until you die. But if you die early, the insurance company keeps the rest. If you live longer than expected, they pay out more than you put in. That’s the trade-off.

Why do people think pensions run out?

Confusion comes from mixing up different systems. In countries like the UK or the US, state pensions can be reduced based on income or means-tested. In New Zealand, Superannuation is universal. No means test. No asset test. Just age and residency.

But people also hear stories of retirees running out of money. That’s not because Superannuation stopped-it’s because their other savings did. Superannuation might cover rent and groceries, but if you want to travel, replace your car, or pay for dental work, you need more. Many retirees dip into KiwiSaver, sell property, or rely on family help. That’s not a pension failure-it’s a planning gap.

What happens if you live longer than expected?

Life expectancy in New Zealand is now around 82 for men and 85 for women. But more people are hitting 90-and even 100. The government doesn’t plan for that. Superannuation doesn’t increase based on how long you live. It stays the same, adjusted only for inflation.

If you live to 95, you’ll get the same weekly payment you got at 65-just for 30 more years. That’s why financial advisers push people to save. Superannuation is meant to be a floor, not a ceiling. It keeps you out of poverty. It doesn’t fund a comfortable retirement.

Real-life example: Margaret, 91, from Tauranga, gets $517 a week from Superannuation. She also gets $200 a week from her KiwiSaver. She doesn’t own her home anymore-she sold it to pay for aged care. Her pension covers her meals and medication. She doesn’t travel. She doesn’t buy new clothes. She’s not rich. But she’s not hungry. That’s what Superannuation does.

Can the government take it away?

Legally, yes-but politically, almost never. Superannuation is one of the most popular government programs in New Zealand. Any attempt to cut it would spark massive public backlash. That’s why it’s survived every economic crisis since 1974, when it was introduced.

There are discussions about raising the age to 67, or means-testing it for high-income retirees. But none of these have passed. As of 2026, the rules remain unchanged. The pension is still universal, age-based, and lifelong.

What should you do now?

If you’re under 50, don’t wait. Superannuation will be there when you turn 65. But it won’t be enough. Start saving now.

• Contribute to KiwiSaver-even $20 a week adds up over 20 years.
• Use the government’s $521 annual kickstart. You have to contribute at least $1,042 a year to get the full amount.
• Consider a lifetime annuity if you have a large lump sum and want guaranteed income.
• Don’t assume your house will fund your retirement. Property values can drop. Maintenance costs rise.

Think of Superannuation like your safety net. It won’t stop you from falling. But it will catch you before you hit the ground.

What if you’re already retired?

If you’re already getting Superannuation, you’re covered. You don’t need to do anything. Just make sure your bank account is up to date. If you’re living overseas, check your residency status. If you’re struggling to make ends meet, contact Work and Income. You might qualify for additional support like the Accommodation Supplement or Community Services Card.

And if you’re worried about outliving your savings? Talk to a fee-based financial adviser-not someone selling you an investment product. Ask: Will I have enough to live on if I live to 95? If the answer is no, you still have time to adjust.

Final truth: pensions don’t run out-but money can.

Superannuation is lifelong. That’s the law. But a comfortable retirement? That’s not guaranteed. It’s built over decades. It’s not handed to you. It’s planned for.

Don’t rely on the state to keep you comfortable. Use Superannuation as your base-and build on top of it. Because when you’re 80, you won’t care how much you saved. You’ll care if you can still afford to see your grandchildren.