Te Pāti Māori advocates for reducing the New Zealand superannuation eligibility age for Māori by 7-10 years, citing lower life expectancy and physically demanding jobs. They argue this addresses the disparity where Māori contribute but often die before benefiting fully from the system.
The Labour Party opposes this policy, citing potential resentment from other demographics and the substantial financial implications. They estimate an 8-year reduction would cost nearly $4 billion in 2024.
New Zealand's superannuation expenditure is significant, reaching nearly $22 billion in 2024 and projected to increase to $29 billion by 2029. This context highlights the considerable cost associated with Te Pāti Māori's proposal.
The Green Party supports flexible eligibility based on factors like health conditions, lower life expectancy, or a just transition. National and Act aim to increase the eligibility age to 67, while previously, the Green Party supported maintaining it at 65.
Data indicates a life expectancy gap between Māori and other ethnic groups in New Zealand, with Māori men and women having significantly lower life expectancies than their Pākehā counterparts. This disparity underpins Te Pāti Māori's argument.
He noted Labour hadn’t decided on its policy yet, but said: “That won’t happen.
“It would cause resentment - not just with the right but with the left also.
“You’d get so much resentment from elder Pākehā people. As much as we do need target programmes, that sort of programme is dangerous and too divisive. We want to take everyone with us.”
Te Pāti Māori explained its position in a statement: “Te Pāti Māori is clear – our people should be able to access superannuation seven to 10 years earlier than the rest of the population.
“Māori life expectancy is significantly lower, and many of our people work in physically demanding jobs that take a toll well before retirement age.
“It is unacceptable that Māori contribute to the system their whole lives but die before they can benefit from it in the same way as others. It isn’t just about the fact that we die sooner; it’s about the fact that we need support sooner.”
Infometrics chief executive Brad Olsen estimated lowering the age of eligibility by eight years, to 57, for Māori would have cost nearly $4 billion in 2024.
By way of context, the Government spent nearly $22b on Super in 2024 – five times the amount it spent on Jobseeker Support and the Emergency Benefit, and eight times what it spent on police.
The cost of Super is expected to rise to nearly $29b by 2029.
The Green Party said it supported “identifying ways to allow flexibility in the age a person may receive New Zealand Superannuation, for example to allow early entry for people with a permanent health condition or disability, lower life expectancy such as Māori, or as part of a just transition [away from fossil fuels]”.
While the gap between Māori and Pākehā life expectancy has been closing in recent decades, it is still notable, according to 2019 Statistics New Zealand data.
Asian women in New Zealand have the highest life expectancy at 88 years, followed by Asian men at 85, European/other women at 85, European/other men at 81, Pacific women at 79, Māori women at 77, Pacific men at 75 and Māori men at 73.
When forming the Government in 2023, National promised NZ First it would keep the age of eligibility for Super at 65. However, both it and Act would like to lift the age to 67 over time.
Before the 2023 election, the Green Party supported keeping the age at 65.
Jenée Tibshraeny is the Herald’s Wellington business editor, based in the parliamentary press gallery. She specialises in Government and Reserve Bank policymaking, economics and banking.
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