Pensioners' growing tax bill
New data shows that working superannuitants in New Zealand are contributing significantly to the tax base, though economists warn this will not solve long-term fiscal challenges. As the population of those over 65 grows, the government faces increasing pressure to manage the sustainability of pension payments.
Why it matters
It highlights the fiscal strain of aging populations on national pension systems, a common challenge for developed economies.
People who are over the age of entitlement to NZ Super are contributing 15 percent of all personal taxes, data shows, but economists say even as that amount grows, it won't help balance the books .
Data released under the Official Information Act showed there were 268,800 working superannuitants in the most recent tax year for which data was available, and 632,300 non-working.
The working group paid $6.6 billion in tax on all income and $1.56b in tax on NZ Super.
The non-working group paid $4.24b in tax on all income and $2.6b on tax on NZ Super.
Across non-working and working superannuitants, they paid $9.84b in income tax in the 2024/2025 tax year. Of that, $4.166b was tax paid on super.
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