It seems most unfair to me, too. In the UK, the state pension is paid in full (though "full" doesn't equate to "adequate to maintain a modest but comfortable, lifestyle") even if you're a millionaire, never mind having 3-phase power laid on. It's lumped in with any other income you have for tax purposes, though.
Apart from the injustice of it, your means-tested NZ system seems to discourage people from economic activity once they reach pensionable age, even if they want to carry on working. That can't be good.
Do they want you to start a gardening business if you have a hefty lawnmower, or demand that you rent out any spare bedrooms?
Andy
(who will start picking up his state pension in six months, Deus volenti)