We’ve already seen and the only difference with Labour is that they are in love with pay equity which comes at a huge cost and leaves the whole balancing act with very little wriggle room.
But the enormous ogre under the bridge is the rapidly expanding cost of superannuation.
How long are we going to talk in circles about this.
ACT has said lets raise it to 67. That’s not crazy.
In Australia, Denmark, Iceland, Israel, Italy, the Netherlands, the United States and Norway it’s 67. In the UK it’s 66 but planned to go to 68.
Canada and Japan are like us but more and more we’re becoming outliers.
All it takes are political leaders saying let’s do it.
David Seymour has. Chris Hipkins hasn’t and now National is saying we’ll do it if everyone else wants to do it.
National, Labour and New Zealand First are running scared because they’re scared of how older people will react.
But if you’re already getting it what’s your beef? You can’t sit there and complain about our books and being resistant to it.
I’m in my 60s. It won’t affect me so what’s to worry about.
50-year-olds will be jittery about it.
Under 40s should already know the issue and should be preparing for a new eventuality.
But the leaders of our biggest parties seem unable to lead if some people might react negatively which doesn’t seem like leadership to me.
Andrew Dickens is a broadcaster with Newstalk ZB. - where this article was sourced.
3 comments:
When 65 was introduced as the retirement age in various Western countries, the average life expectancy from birth tended to be a bit below 65 while for someone who made 65 it was generally 5-12 years (the difference being attributable to juvenile death rates). There were far more working adults in the population than there were old pensioners.
Times have changed with the vast majority of people now making it to at least 65 and a growing proportion making it to 85+ at which stage geriatric care costs balloon. And the ratio of working age people to old age pensioners has shortened immensely.
Yes, of course we need to revisit the retirement age. But what we need to revisit even more urgently is the way in which the old age pension is financed. NZ is in a minority of countries that have non-contributory universal Super schemes (others including Botswana and Mauritius). Countries such as the UK, Sweden and Holland have Super schemes that require contributions throughout the working life. That is where the real issue of Super affordability lies rather than adding a couple of years to the retirement age.
Yes National super as it stands is from tax, but that is because the money that used to be deducted separately and earmarked for pensions got lumped into national super by Muldoon. Now to many people it seems like it is just another welfare handout.
I am all for a scheme of individual accounts into which contributions are mandatory. The problem with so many NZ attitudes is this: Fred retires having saved 1.8 million and joe retires with 700k....so how about taking a chunk of Fred's CAPITAL as he is a rich prick with too much and give it to Joe. Equity and equality, eh. That's the danger.
But the super as it stands now can then be a means/asset tested benefit kicking in in part payment stages when your means/assets fall below X.
Simply raising the age does not solve the underlying issue. And another point. If people have to work to 67 or 68 or 70 there must be jobs otherwise they will need a benefit.
Having a go at older folk is now a vote-catching scheme aimed at the young who do not know (and some don't want to, it is just a case of all those greedy oldies) by dividing people on age.
Another point: The number of people needing a benefit be it sickness or the dole, call it what you will, in the 65 plus group is potentially worrying given our obesity and related illness rates. And partr-Maori, healthy or not ,will be demanding super ''early'' on race-victim grounds.
As said, just increasing the age could mean paying money out anyway, just under a different name.
I am in my very early 50's so a raise in the eligibility age will affect me. However I can see it is the only sensible thing to do. We cannot afford not to as a country. Kevin
Post a Comment
Thank you for joining the discussion. Breaking Views welcomes respectful contributions that enrich the debate. Please ensure your comments are not defamatory, derogatory or disruptive. We appreciate your cooperation.