The Government is being urged to reconsider its cost-cutting scheme to encourage New Zealanders to apply for overseas pensions.
It will spend more than $12 million over the next five years to get 10,000 new retirees a year to receive their full entitlements from pension funds abroad.
The scheme is designed to prevent double dipping - a dollar is docked from New Zealand Super for every dollar received from overseas, including money from a spouse's fund.
Vivien Engler, whose husband receives an American pension, says despite paying tax since she was a teenager she was getting less than $90 a week, which varied according to the exchange rate.
Susan St John, of Auckland University's retirement policy and research centre, says the system creates many unfair anomalies.
She says fitting different pensions from different countries into some bureaucratic rule, then deducting dollar for dollar is a very draconian way of saving a few million dollars.
Dr St John says an inquiry is needed to look at better ways to make savings on superannuation, including increasing the 10 year residency requirement before someone is allowed to receive a full New Zealand pension.
