Grey Power New Zealand is reaffirming its long-standing support for universal New Zealand Superannuation (NZS). This follows recent comments from Labour leader Chris Hipkins indicating openness to discussing possible means-testing.
Grey Power national vice-president, David Marshall says while the organisation welcomes constructive debate about the future of retirement income, it remains firmly opposed to any move toward means-testing.
“New Zealand Superannuation provides certainty, dignity and independence for older New Zealanders. Undermining that certainty risks eroding confidence in the entire system for future retirees.”
For four decades, Grey Power has consistently advocated for a universal, non-means-tested system and continues to oppose any change to that principle.
International experience shows means-testing brings unintended consequences.
“It introduces complexity, discourages saving, and can penalise those who have worked hard and planned responsibly,” Mr Marshall says. “It risks turning a simple, trusted system into one that is uncertain and inequitable.”
Australia’s means-tested pension highlights these challenges. Application processes are complex, reporting requirements are ongoing, and additional income can significantly reduce entitlements thus discouraging continued workforce participation.
New Zealand currently has one of the highest workforce participation rates in the OECD for those aged 65+. This is about 24-26%, compared to Australia’s 12-15%. A sharp decline in participation here would have significant economic implications.
Grey Power also notes that New Zealand’s superannuation model is widely regarded as efficient and effective in providing baseline income security. Its simplicity and universality support independence and reduce reliance on other social services.
“Universal superannuation works because it is clear, fair and predictable,” Mr Marshall says. “It ensures all New Zealanders have a foundation to live with dignity in later life.”
While concerns are often raised about the cost of NZ Super, the NZIER Business of Ageing 2026 Report highlights the substantial contribution of older New Zealanders: around $9 billion in paid work, $5 billion in self-employment, and more than $20 billion in unpaid work annually – compared with NZS expenditure of $23.2 billion.
Over its 40-year history, Grey Power has advocated across a wide range of issues affecting seniors, including healthcare access, energy affordability, aged care standards, retirement village regulation, rates rebates, and SuperGold Card benefits. Protecting NZS, however, remains central to its work.
Grey Power supports cross party discussion on retirement policy but stresses that any future approach must begin with a clear commitment to universality and fairness.
“We agree long-term consensus is important,” Mr Marshall says.
“But that consensus must protect the integrity of superannuation, not weaken it.”
As Grey Power celebrates its 40-year anniversary, the organisation says the current debate underscores the ongoing need for strong advocacy.
“The issues may evolve, but the need for an independent voice has not diminished.
“Grey Power will continue to stand firmly for older New Zealanders – protecting their rights, security and dignity now and into the future.”
