As part of this year’s “wellbeing” budget, the New Zealand Government will close the “non-qualifying partner” provision in the superannuation legislation. Until now, a pensioner could include their younger partner (under 65) in their payment, provided the couple’s combined other income was below $100 a week. Read more on https://www.govt.nz/browse/tax-benefits-and-finance/new-zealand-superannuation-and-the-veterans-pension/your-partner-and-nz-superannuation/getting-nz-super-for-your-partner/#including-your-partner

From 9 November, the NZ Government is intending to remove this provision, so non-qualifying partners will no longer be able to be included! The closure will have an immense impact on many people who are about to retire, and without any warning, people will not have time to re-set their retirement plans! For example, a younger wife who is looking after an older man with health needs will, under the new law, no longer be applicable for the “non-qualifying partner” payment and will have to look for paid employment. This is simply unrealistic! They are unlikely to find re-employment before they retire, may not qualify for any other benefit, and the non-qualifying partner option may be the only way for them to make ends meet. Of course, this becomes even more imminent now that many New Zealanders over 55 yrs have lost their jobs as a result of Covid-19!

In 2017, the Treasury and Retirement Commissioner made a recommendation to the NZ Government, to increase the lead-in time to five years – it is unknown why this advice was not followed. Many submissions have been made since, including by Greypower New Zealand, but these have just bounced against the government’s brick walls! In light of the current Covid-19 situation the NZ Government needs to seriously re-consider this deadline and at least provide a lead-in time of at least 12 months before this new law takes place, so affected people have time to re-set their retirement plans!

Very few affected people are aware of this closure! Are you? Talk to your family members and friends and ask the NZ Government to at least extend this deadline before it is too late!

Also note the following articles published in the past: https://www.stuff.co.nz/business/118933472/pension-changes-remove-extra-payments-for-nonworking-younger-partners

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