Editing Economy of New Zealand (section)

=== Superannuation ===
{{Main|Welfare in New Zealand#Pensions}}
New Zealand has a universal [[superannuation]] scheme. Only people who are aged 65 years old or over, are New Zealand citizens or permanent residents and who are residing in New Zealand at the time of application are eligible. They must also have lived in New Zealand for at least 10 years since they turned 20 with five of those years being since they turned 50. Time spent overseas in certain countries and for certain reasons may be counted for New Zealand superannuation. New Zealand superannuation is taxed, the rate of which depends on superannuitants' other income. The amount of superannuation paid depends on the person's household situation. For a married couple the net tax amount is set by legislation to be no less than 66% of net average wage.<ref>{{Cite web |title=New Zealand Superannuation and Retirement Income Act 2001 No 84 (as at 01 April 2022), Public Act – New Zealand Legislation |url=https://www.legislation.govt.nz/act/public/2001/0084/latest/whole.html |access-date=10 June 2022 |website=www.legislation.govt.nz}}</ref>

Because of the growing number of elderly becoming eligible, superannuation costs rose from $7.3 billion a year in 2008 to $10.2 billion in 2014.<ref>{{cite news|url=http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11209088|title= National lacks courage on retirement age – Act leader|work=[[The New Zealand Herald]]|date=24 February 2014}}</ref> In 2011 there were twice as many children in New Zealand as elderly (65 and over); by 2051 there are projected to be 60% more elderly than children. In the ten years from 2014, the number of New Zealanders over the age of 65 was projected to grow by about 200,000.<ref>{{cite web|url= http://www.stats.govt.nz/browse_for_stats/people_and_communities/older_people/pop-ageing-in-nz.aspx |title=Population aging in New Zealand|publisher=[[Statistics New Zealand]]}}</ref>

This poses a significant problem for superannuation. The government gradually increased the age of eligibility from 61 to 65 between 1993 and 2001.<ref>{{cite news|url= http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10763926|title=Brian Gaynor: NZ badly behind times with age pensions|work=[[The New Zealand Herald]] |date=5 November 2011}}</ref> In that year the [[Fifth Labour Government of New Zealand|Labour Government]] of [[Helen Clark]] introduced the [[New Zealand Superannuation Fund]] (known as the "Cullen Fund" after Minister of Finance [[Michael Cullen (politician)|Michael Cullen]]) to part-fund the superannuation scheme into the future. As at October 2014, the fund managed NZ$27.11 billion, 15.9% of which it invested within New Zealand.<ref>{{cite web|url= https://www.nzsuperfund.co.nz/sites/default/files/documents-sys/October%202014%20Monthly%20Report.pdf|title= October 2014 Monthly Report|publisher= [[New Zealand Superannuation Fund]]|access-date= 14 December 2014|archive-date= 23 January 2019|archive-url= https://web.archive.org/web/20190123054423/https://www.nzsuperfund.co.nz/sites/default/files/documents-sys/October%202014%20Monthly%20Report.pdf|url-status= dead}}</ref>

In 2007 the same Government introduced a new individual saving-scheme, known as [[KiwiSaver]]. KiwiSaver principally targets growing people's retirement savings, but younger participants can also use it to save a deposit for their first home. The scheme is voluntary, work-based and managed by private-sector companies called "KiwiSaver providers". {{As of | 2014 | 30 June}} KiwiSaver had 2.3 million active members (60.9% of New Zealand's population under 65). NZ$4 billion was contributed annually, and a total of NZ$19.1 billion has been contributed since 2007.<ref name="KSstats">{{cite web |url= http://www.kiwisaver.govt.nz/statistics/annual/ |access-date= 14 December 2014 |title= KiwiSaver annual statistics |publisher=[[Inland Revenue Department (New Zealand)|Inland Revenue]]}}</ref>