Does NZ spend less on pensions than most wealthy countries?

AAP FactCheck Investigation: Does superannuation cost New Zealand 4.4 per cent of GDP each year – and is this low by international standards?

 

THE STATEMENT

“The reality is we are way below the international cost of superannuation, we are about 4.4 per cent of GDP.” Winston Peters, New Zealand First leader and deputy prime minister, October 8, 2020. 

 

THE ANALYSIS

New Zealand First leader and deputy prime minister Winston Peters has defended the cost of New Zealand’s superannuation scheme, claiming the government spends far less on retirement benefits than other countries.

Mr Peters made the statement during the TVNZ Multi-party Debate on October 8, after being asked whether it was responsible for the government to keep current superannuation criteria in place in the post-COVID-19 economic climate.

“The reality is we are way below the international cost of superannuation, we are about 4.4 per cent of GDP,” he said in response to the suggestion.

AAP FactCheck examined Mr Peters’ statement that government spending on superannuation was 4.4 per cent of GDP, and its commitment was low by international standards.

Source: PPI