Stuff report:
Almost 50,000 people claim NZ Super while also earning more than $100,000 a year, data from the Retirement Commission shows – and income-testing them could be one way to make the system more affordable.
There have been concerns that NZ Super will become too expensive as a growing proportion of the population reaches the age of 65.
The commission has released a paper outlining policy options. It says leaving the age of eligibility at 65 is the best option. But income-testing would be a fairer way to reduce the cost of the system rather than raising the age of eligibility, if required.
I'd do both, but one is better than none.
Here's my ideal NZ Super scheme.
- Private savings should be main source of retirement income through kiwisaver etc. Potentially have state top ups into KiwiSaver to ensure people are saving at the minimum needed.
- Full NZ Super starts at age 70.
- A transition benefit between NZ Super and Unemployment Benefit available from age 65 to 70
- NZ Super is set at a level based on empirical cost evidence and then only adjusted for CPI (but CPI for super annuitants).
David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders.
3 comments:
Sure slam me with effectively more tax on my already taxed savings, to give it away to those who haven't bothered to sort their own retirement.
Why bother saving when there are people who are forced to subside you ?
Easy to say when your physical activity level consists of 8hours a day in a chair for the working week.
Try 10-12hrs a day on a building site or a farm or a fitter, mechanic, plumber.
These physical jobs take atoll on the body. At 55 the knees, hands back are shot. Tell those men, face to face , you’ve got another 15years before they can hang up the tool belt. Better still, do their job for a week and see how tough it is.
Here’s a great idea which would help pay for the pension. Stop paying people the benefit ,for decades, to do sod all.
People deserve the pension if they have worked and payed for it.
Scrap superannuation altogether. That way people will get what they plan for and what they pay for. Superannuation is such a condescending concept - you can’t look after yourself so the taxpayer will.
Why don’t they take the same approach with breeding - you can only afford x children, no state subsidy, so you will be prosecuted if you breach the rules. As opposed to compensated by the tax payer.
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