"It's rationale for a large number of New Zealanders not to save for their retirement," Weatherston says.

He says that's especially true if the Government (like the current one) continues to pay New Zealand Superannuation at the rate of 65 per cent of the average weekly wage.

At 65 per cent pensioners are getting an annual income after tax of about $16,000 annually and that's reasonably generous, considering most of the recipients own their own home debt-free and have no major expenses.

In many cases a pensioner living solely off NZ Super is better off than someone on the average salary (about $39,000 gross) who has major expenses such as a mortgage and their children's education.

"$16,000 is actually going to be a luxury," Weatherston says.

Surprisingly it's a view that Retirement Commissioner Colin Blair is reasonably comfortable with.

"I don't disagree with it too strongly," he told a superannuation conference in Wellington recently.

He says some people are actually encouraged to save too much.

"Basic day-to-day requirements can be covered by NZ Superannuation," he says.

The big issue is that no one can say with any certainty what level NZ Super will be paid at in future years. For this reason there is a need for people to save for their retirement, rather than to rely on payouts from future Governments.

Currently it is estimated that about 40 per cent of superannuitants rely solely on the state pension.

Have your say (either in person or anonymously) in the Discussion Forum