News
8 April 2026
It's pay rise time for superannuants – but will it be enough?
What's changing for superannuants?
The annual NZ Super pay rise has kicked in - alongside a raft of other government changes. But while the boost is welcome, rising costs threaten to wipe that extra cash out almost as fast as it appears.
From 1 April ACC levies tick up, KiwiSaver contributions increase, and the minimum wage rises. But there's good news for retirees: NZ Superannuation gets its annual boost.
From 1 April, NZ Super payments automatically adjust to keep pace with wages and inflation. Most retirees can expect an extra $30 to $40 per week, depending on their living situation and tax code. The good news? You don't need to lift a finger – the increase happens automatically.
|
Qualifying as |
Fortnightly rate (after tax at 'M') |
Fortnightly rate (after tax at 'S') |
Fortnightly rate, before tax |
|
Single (living alone) |
$1,110.30 |
$1,068.30 |
$1,294.74 |
|
Single (sharing) |
$1024.90 |
$982.90 |
$1,191.14 |
|
Couples |
|
|
|
|
Only one of you qualifies |
$854.08 |
$812.08 |
$984.28 |
|
Both you and your partner qualify (combined) |
$1,708.16 |
$1624.16 |
$1,968.56 |
|
Both you and your partner qualify (each) |
$854.08 |
$812.08 |
$984.28 |
|
Both you and your partner qualifies and you include your partner in your payments (combined) - grandparents since November 2020 |
$1624.12 |
$1,540.12 |
$1,866.32 |
|
Only one of you qualifies and you include your partner in your payments (each) - grandparented since November 2020 |
$812.06 |
$770.60 |
$933.16 |
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The uncomfortable truth: it's still not enough
While any pay rise is welcome, this increase falls dramatically short of what retirees actually need. According to Massey University's Retirement Expenditure Guidelines 2025, New Zealand superannuants are facing a staggering household income gap of $42 to $940 per week.
That modest $30-$40 weekly increase? It's already being swallowed by rising costs across the board.
Where your ‘pay rise’ is really going
Petrol prices are skyrocketing. Your $30 increase may not even cover the extra you're now paying at the pump. And while some Kiwis will receive $50 a week in petrol relief, superannuants don't qualify. As fuel costs rise, so will everything else – businesses can only absorb increased transport costs for so long before passing them on to consumers.
Council rates are surging nationwide, for example:
• Dunedin is proposing a 10.5% overall rates increase, now split into separate water and non-water rate hikes to reflect new water service delivery requirements.
• Wellington residents face an eye-watering 15% increase in water charges – jumping from $2,100 to $2,400 annually – as Tiaki Wai takes over water assets from July.
The bottom line
The reality is stark: 60% of New Zealanders over 65 rely primarily on NZ Super to live. For these retirees, the gap between their fixed income and actual living costs is widening, not closing.
This latest increase, while appreciated, simply doesn't counteract the cost-of-living crisis hitting retirees particularly hard. When you're on a fixed income, every price hike – from petrol to rates to groceries – hits hard.
Bridging the gap
We already know there's a significant shortfall between what NZ Super provides and what's needed for the retirement you envisioned. That gap isn't going away.
Lifetime Retirement Income solutions are designed to bridge this divide – transforming your retirement savings (through Lifetime Retirement Income) or home equity (through Lifetime Home) into predictable, reliable income you can count on.
Ready to explore your options? Get in touch to discover how you can turn your assets into the retirement security you deserve.
Email: retire@lifetimeincome.co.nz
Phone: 0800 254 338
How much would you get a fortnight with Lifetime?
Written by:
Sonia Speedy
Sonia Speedy has been a journalist for over 20 years, working in newspapers, magazines and radio. She also runs an online platform for parents at familytimes.co.nz. She lives on the Kāpiti Coast with her young family and loves writing stories that help make people's lives easier.
Invest with Lifetime for a retirement income managed for living.