Key Takeaways:
- The amount of money deducted from New Zealand pensions due to overseas pension payments has been increasing year on year since 2021, reaching $590 million in 2025.
- An average of 95,000 overseas pensions are received by New Zealand citizens each year, with the majority coming from the United Kingdom and Australia.
- The government’s policy of deducting overseas pension payments from New Zealand pensions has been criticized as unfair and has led to some individuals receiving no New Zealand pension at all.
- The policy has been described as "reverse Robin Hoodism" and has left some individuals struggling to make ends meet.
- There are calls for the government to reconsider the policy and provide more support for those affected.
Introduction to the Issue
The New Zealand government’s policy of deducting overseas pension payments from New Zealand pensions has been a topic of controversy in recent years. According to figures provided to the Herald, the amount of money deducted from New Zealand pensions due to overseas pension payments has been increasing year on year since 2021, reaching $590 million in 2025. This policy has left some individuals struggling to make ends meet, and has been criticized as unfair. In this article, we will explore the issue in more detail and hear from those who have been affected by the policy.
The Impact on Individuals
One individual who has been affected by the policy is Auckland man Jim Wolfson. Wolfson, a dual citizen of New Zealand and the United States, has lived in New Zealand for two decades but receives no New Zealand pension due to the deductions. He describes the policy as "bizarre and macabre" and feels that it is unjust for him to receive no New Zealand pension despite it not being means-tested. Wolfson’s situation is not unique, and there are many others who have been affected by the policy. For example, Sissi Stein-Abel, a pension campaigner, has been campaigning against the policy for years and recently became a pensioner herself. She does not receive her New Zealand pension due to the deductions and has to rely on her overseas pension to care for her husband, who suffered a stroke.
The Government’s Response
The government has defended the policy, saying that it ensures people receive "equitable levels of support" and that the arrangements are fair to taxpayers. However, critics argue that the policy is unfair and that it penalizes individuals who have worked and lived overseas. The Ministry of Social Development (MSD) general manager for international disability and generational policy, Harry Fenton, said that the policy is a "long-standing feature of New Zealand’s system" and that it ensures people who have lived or worked overseas are not financially advantaged over Kiwis who remain at home. However, this response does not address the concerns of those who have been affected by the policy and feel that it is unfair.
The Financial Impact
The financial impact of the policy on individuals can be significant. Wolfson, for example, receives a little over $900 in the hand each week, but due to high debts that cost him about $500 a week, he has "virtually nothing" left over once he has paid all his bills. He has not been able to return to the US to visit family and is still driving the car he bought when he first moved to New Zealand. Stein-Abel also faces financial difficulties due to the policy, and has to rely on her overseas pension to care for her husband. The policy has also led to some individuals missing out on other forms of support, such as the Winter Energy Payment. Wolfson, for example, is ineligible for the payment because his pension is deducted to zero, despite being eligible if he received even a cent of the pension.
The Broader Implications
The policy has broader implications for New Zealand as a whole. Stein-Abel has campaigned against the policy for years and has seen many people affected by it. She estimates that there are probably 50,000-60,000 people who don’t receive any New Zealand Super due to the deductions. The policy has also led to some individuals moving out of New Zealand because they have "had enough" of the deductions. Stein-Abel knows of "quite a few people" who have made this decision, including one person who decided to move back to their home country despite having lived in New Zealand for 40 years. The policy has also given Stein-Abel a "really negative attitude" about New Zealand, and she feels that it is "totally unfair" in a country that says everyone gets a fair go.
Conclusion
In conclusion, the New Zealand government’s policy of deducting overseas pension payments from New Zealand pensions has been a topic of controversy in recent years. The policy has left some individuals struggling to make ends meet, and has been criticized as unfair. While the government has defended the policy, critics argue that it penalizes individuals who have worked and lived overseas. The policy has significant financial implications for individuals, and has led to some missing out on other forms of support. There are calls for the government to reconsider the policy and provide more support for those affected. As Stein-Abel says, "New Zealand is just not paradise on Earth" for those who have been affected by the policy.