A retired man from Birmingham is leading a charge against what he calls an "immoral" pension rule that has stripped him of £100,000 and left him living in poverty in New Zealand.
The Fight Against a 'Draconian' Policy
Bob Newcombe, along with his wife Jan, emigrated from the UK to New Zealand in the 1970s while still in their twenties. Seeking a change from post-war Birmingham, they never regretted the move. However, their retirement has been blighted by New Zealand's direct deduction policy, which they say is "impoverishing" them.
This policy reduces the amount of New Zealand Superannuation (the state pension) paid to individuals who also receive a pension from another country. In effect, for every pound Bob receives from the UK state pension, a pound is deducted from his NZ pension entitlement.
A Widespread Issue Affecting Thousands
Bob Newcombe's situation is far from unique. Reports indicate that more than 94,000 expats from 75 different nations are affected by this rule in New Zealand alone. The policy is designed to ensure that people who have lived solely in New Zealand are not financially worse off than those with overseas pension entitlements.
Harry Fenton of New Zealand’s Ministry of Social Development stated: "If a person is eligible for an overseas pension, they must apply for it and inform the ministry how much they are entitled to receive."
Living Below the Poverty Line
For Bob and Jan, the financial impact has been severe. They estimate the policy has cost them £100,000 over the years. "I couldn't believe that they could do it. It was basically immoral and unfair," said Mr Newcombe.
He highlights a stark inequality: a New Zealander moving to the UK can claim a full, indexed British state pension, but the reciprocal arrangement does not apply. The couple now lives below New Zealand's poverty income threshold of $54,000 (approximately £23,421) per year.
Their savings have dwindled, forcing them to take out an equity loan on their mortgage-free home of 30 years just to make ends meet. In a bold move, Bob Newcombe is now preparing to take his fight against the direct deduction policy to the United Nations.
