Hon Paula Bennett

Minister for Social Development and Employment

28 May 2009

Government delivers on NZ Superannuation

The National Government has delivered on its commitment to lock higher superannuation payments in place for all superannuitants, Social Development and Employment Minister Paula Bennett says.

Budget funding will ensure the Superannuation and Veteran’s Pension after-tax married rates are maintained at a minimum of 66 per cent of the average after-tax wage, rather than letting them drop back to 65 per cent as would otherwise have happened.

More than half a million older New Zealanders will benefit from this decision, which will cost $1.3 million in 2009/10. An extra $17.3 million has been set aside for future adjustments between 2010/11 and 2012/13.

Ms Bennett says the move fulfilled a commitment made by National before the election.

“We know that the downturn is hitting older people on fixed incomes especially hard. Many have lost savings with the collapse of finance companies, and those relying on income from savings have suffered from falling interest rates,” she says.

“Raising the wage floor for superannuation rates will improve the financial situation of older people and recognise the huge contribution that older New Zealanders make to our families, our communities, and our country.

“As a Government, we are committed to making sure older New Zealanders are treated with respect and dignity.”

ENDS

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