If you’re years away from retirement, you might not have given much thought to NZ Superannuation (NZ Super). Maybe you’ve even heard people say it won’t exist by the time you retire. However, NZ Super is deeply ingrained in our social system, and while it may evolve, it’s unlikely to disappear.

Here are 10 things you should know about NZ Super—because it will almost certainly play an important role in your future:

1. NZ Super is for everyone (who’s eligible)

Unlike some countries where state pensions are means-tested, NZ Super is universal. That means it’s available to all eligible New Zealanders, regardless of income or assets. Once you hit 65 and meet the residency requirements, you get it—whether you're still working, a millionaire, or living off savings.

2. It’s paid for by today’s taxpayers

NZ Super is funded through general taxation, meaning the money paid to retirees comes from those currently working. This "pay-as-you-go" system works well when there are plenty of workers supporting each retiree, but as our population ages, it becomes more of a challenge. There are only so many tax dollars to go around and an awful lot of things the government needs to spend them on, after all.

3. The NZ Super Fund will help cover future costs

There is a bright spot on the horizon in the form of the NZ Super Fund, which the government set up in 2001 to help cover future NZ Super costs as the population ages. It’s essentially a giant savings account for the country. Withdrawals from the Fund will begin in the 2030s, but substantial draw-downs will not begin until the 2050s.

4. The age of eligibility could change

Right now, you qualify for NZ Super at 65, but there’s ongoing debate about raising the eligibility age. With people living longer and the cost of NZ Super rising, future governments may push the age up gradually—so it’s worth keeping an eye on policy changes. 

5. You can still work and get NZ Super

Reaching 65 doesn’t mean you have to stop working. There’s no earnings test, so you can keep working full-time, part-time, or start a side hustle and still receive NZ Super. Just remember, if you have to change your tax code due to your additional income, your NZ Super payments may be less after tax.

6. The payments probably won’t be enough to live on comfortably

NZ Super provides a base level of financial support, but it barely stretches to cover basic living costs. At the time of writing, a single person living alone receives around $520 a week (after tax at rate ‘M’), while couples get around $800 between them. For most, this isn’t enough for a comfortable lifestyle, so having other savings or investments is a smart move.

7. It’s indexed to wages and inflation

NZ Super payments are reviewed every year and adjusted based on wage growth and inflation. This helps ensure retirees maintain a reasonable standard of living relative to working-age New Zealanders. However, the adjustments aren’t always enough to keep up with rising costs.

8. You might not get it if you live overseas

If you’ve spent time living outside New Zealand, your NZ Super entitlement could be reduced. You generally need to have lived in New Zealand for up to 20 years from the age of 20 (including five years after 50) to qualify. If you plan to retire overseas, or travel for an extended period, different rules apply depending on the country.

9. The future of NZ Super is always a hot topic

Every election, there’s talk about the future of NZ Super—whether to raise the age, change how it’s funded, or introduce means testing. Small adjustments (like lifting the age of eligibility) may happen over time. But, completely scrapping NZ Super is unlikely. It’s politically risky, and most Kiwis rely on it in retirement. While it may look different in the future, some form of NZ Super is highly likely to exist when you retire.

10. Don’t rely on NZ Super alone to fund your retirement.

NZ Super is a great safety net, but it’s not a replacement for personal savings. If you want a comfortable retirement, it’s wise to invest, save, and plan ahead. Think of NZ Super as a base, not a full retirement plan. The more you prepare now, the more financial freedom you’ll have when you finally reach the age of eligibility (whatever it happens to be!).