The Government has confirmed that NZS payments will increase from April by 6%. This is welcome news as the high rate of inflation we are encountering has been eroding the buying power of super payments. This increase matches the rate of inflation in 2021. For those who are single and living alone will receive a $26/week increase, and couples, both eligible, will see an additional $40/week in their bank account.
NZS increases are based on the increases in the CPI, but also need to take account of the average ordinary time wage. For the last few years NZS has increased faster than the CPI, as the average ordinary time wage increased faster – this year the converse is true, so payments have risen by the CPI increase, rather than the average ordinary wage increase of just over 2%.
Community Services Card income limits have also increased by 6%, but there is no indication to date that the Winter Payment will increase, despite many low-users facing increases in their power charges this winter.
David Marshall.
National Advisory Group Chair: Retirement Income and Taxation.