Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Government seeks feedback on Dunne’s flexi-pension plan

Government seeks feedback on Dunne’s flexi-pension plan

By Paul McBeth

Aug. 26 (BusinessDesk) - The government is seeking feedback on a proposal by United Future leader and former Revenue Minister Peter Dunne to give pensioners more say in when they claim their superannuation entitlement.

Finance Minister Bill English today released a discussion document and is asking for submissions on whether people should be able to claim a reduced pension early, or defer their entitlement for a bigger superannuation. The government is sticking to Prime Minister John Key’s 2008 pledge not to tinker with super eligibility, and is merely testing public appetite for a conversation on the topic, he said.

Dunne’s proposal would allow people to access superannuation between 60 and 70 years of age, and adjust the level lower by 6 percent for every year before 65, and raise it by 10 percent for every year over. That means if someone took the pension at 60, they would get 73 percent of the rate, while someone taking it at 70 would receive 160 percent.

New Zealand’s universal superannuation is set at about two-thirds of the average wage, and increases are linked to inflation and wages.

“As agreed in the confidence and supply agreement with United Future, we are issuing this discussion paper to test the public appetite for providing more flexibility around when New Zealanders can opt to first receive New Zealand Superannuation,” English said in a statement.

The rising pension and healthcare bill for New Zealand’s ageing population has been a bugbear for the Treasury, which has repeatedly cited it as a major threat to the country’s future finances.

The government spent $9.36 billion on superannuation payments for some 612,000 pensioners in the 11 months to May 31, according to its latest financial statements, amounting to about 17 percent of core tax revenue.

By 2017, that bill is forecast to rise to $12.71 billion to pay for 704,000 superannuitants, according to Budget forecasts. That amounts to the same proportion of tax revenue, which is expected to rise by about 25 percent over that period.

In 2010, the government-appointed Savings Working Group’s pressed for tax reform as a means to improve the nation’s savings rate, and found people under the age of 45 don’t have security for pension income because national superannuation can’t survive in its current form.

Submissions on the document are open until Oct. 11, and English will report to cabinet on the results in November.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news