Locals grapple with superannuation changes

Work: Michelle Davies (left) and Sonia Te Whare, may have to work longer with proposed changes to NZ Super Photo/Ben Fraser

Rotorua's Ian McGrath has prepared for his own retirement - so doesn't care about having to wait an extra two years to get his superannuation.

However, some other locals say they are feeling ripped off and don't want to have to work until they are 67.

Prime Minister Bill English announced this week his plans to up the eligibility age for New Zealand's Superannuation scheme from 65. It will affect Kiwis born after July 1, 1972.

Mr McGrath, 36, is now an additional two years away retirement, but he said the general feeling in his house was they "don't care".

"It will change again before we get to retirement," he said.

"We have been taught to prepare for our retirement in other ways, whether it be KiwiSaver or private pension funds."

Mr McGrath and his wife have plans in place with private pensions, KiwiSaver and a rental portfolio.

"I think most people who are under 42 aren't expecting to live off the state when we retire and so whether it is 65, 67 or even older by the time we retire it won't really matter," he said.

"Anything extra, in terms of superannuation from the government, will be a bonus."

However 38-year-old Viktor Galyer isn't pleased with the decision.

"I don't like it, I don't want to work till I'm 67," he said.

"They're making a change even though looking at the statistics they don't necessarily need to."

Mr Galyer said he had KiwiSaver, but that would go towards buying a house first, so he had not started saving for retirement.

"It's crazy that the flag was such a big deal, but this was done so quickly we didn't even really know about it," he said.

Sonia Te Whare, born in 1967, will be unaffected by the change, but can understand people are feeling ripped off.

"It doesn't really bother me, because for me personally it will be fine," she said.

"They already moved the goalposts when we were in our 30s, from 60 to 65."

Her co-worker Michelle Davies falls just within those affected, born in August 1972, and will have to work an additional six months before she is eligible for the pension.

"They've made it hard for our generation to get themselves set up financially and I guess it gives people two more years.

"I feel sorry for people in the line of work where it's quite physical."

Will you be affected by the change to NZ Super?

If you were born on or before June 30, 1972
Superannuation changes won't affect you. You will be eligible for superannuation from your 65th birthday.

If you were born between July 1, 1972 and December 31, 1972
You will be eligible for NZ Super at 65 years and 6 months old

If you were born between January 1, 1973 and June 30, 1973
You will be eligible for NZ Super at 66 years old

If you were born between July 1, 1973 and December 31, 1973
You will be eligible for NZ Super at 66 years and 6 months old

If you were born on or after January 1, 1974
You will be eligible for NZ Super at 67 years old

Immigrants

New migrants will need to live in New Zealand for 20 years to qualify for NZ Super - twice as long as current conditions. This includes five years after they turn 50.