LINDSAY MITCHELL: Who Moves from Welfare to Super?
- Administrator
- Oct 12
- 3 min read
The National government is presiding over significant growth in benefit dependency, in both numbers and the length of duration people remain dependent. When they took office in late November 2023 there were 369,000 work-age people on benefits. By the end of September 2025, that number had grown to 410,328 - or by just over eleven percent.
Given New Zealand's rapidly ageing population, I wondered how much the apparent growth is being suppressed by people moving off a benefit and onto Super. So I asked for data from MSD under the Official Information Act.
Through 2024 and during the first half of 2025 (constituting a good chunk of the current government's tenure) 14,952 people transferred from a working-age benefit to Super.
Over the same period, total working-age beneficiaries rose from to 378,711 to 406,128 or 7.2%.
Without the departure of 65 year-old transferees, the increase would have been 11.2%
The answer then to my question is percentage-wise, the growth is being suppressed quite substantially. Of course, this has always been the case. But it is important to grasp that a minus from the working-age ledger doesn't necessarily equate to someone becoming employed and self-sufficient.
I also asked for a breakdown of which benefits the transferees were coming off.
Unsurprisingly a large number have come from the Supported Living Payment (formerly Invalid Benefit). In 2024, 49 percent of people who transferred onto super came from this benefit; 43 percent moved from a Jobseeker benefit; 7 percent had been on an Emergency Benefit and 36 people had been on Sole Parent Support.
Working backwards, given that a sole parent can only qualify while their youngest child is under fourteen, the sole parents are likely to be custodial fathers. But an older female sole parent might have a whangai youngster.
The Emergency Benefit is for those people who do not qualify for a main benefit often because they do not have residency or citizenship. Non-quota refugees and asylum seekers for instance. So how would they qualify for Super? Well, it may be that by the time they eventually achieve either status, they are older than 64.
The 43 percent on Jobseeker is elevated compared to eight years ago reflecting a higher unemployment rate. There are elevated numbers on Jobseeker at all ages.
As for the Supported Living Payment, incapacitating illnesses and injuries obviously grow more common with age. Consider too that ACC's recent performance has been less than stellar, and the health system leaves much to be desired.
But there is a further factor in play. Being unemployed long term can lead to becoming unemployable. More than a third of Supported Living Payment recipients have a psychiatric or psychological condition (including substance abuse). There is research evidence that people migrate from the dole to sickness to invalidity ... and then naturally to Super. We are probably still seeing people coming through who haven't worked since the 1990s deep recession.
The raw stats don't tell us to what degree but being on welfare at the age of 64 often indicates significant long-term reliance.
Welfare is like an iceberg. The visible tip gets all the attention - the young and unemployed.
But below the surface is a very large group of people for whom welfare is a way of life - whether they chose it or not.
It is endemic but it's also just part of the Kiwi wallpaper. It will remain so without major reforms.
Right now, sadly, the stats are all heading in the wrong direction and it is hard to see what will shrink the iceberg.
Lindsay Mitchell blogs here
Another excellent analysis thank you Lindsay. And agree the long term trends are worrying. But let's cut a bit of slack to those, mostly over 50, who become ill, or are unable to continue with physical jobs. Think commercial fishing, construction, agriculture. They will inevitably progress from "jobseeker" (into which Sickness and Unemployment benefits were merged, with good intentions but not a great result), to Supported Living, and when they turn 65 to Super. It's inevitable if the Super age is raised that more people will follow this track. We don't need research evidence to show this; it's a natural consequence of people getting older.
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There is no such thing as a free lunch!
Benefits are for the truly needy, not the lazy or greedy!