Super Policies Not Fair To Workers, Research Shows
The government should re-think its superannuation priorities in light of the Ministry of Social Policy report on the living standards of older New Zealanders, ACT leader Richard Prebble says.
"The report shows most retired people are better off than the younger working-age population. It shows the danger of legislating on slogans, rather than carefully-researched and thought-through social policies," Mr Prebble said.
"The government is asking Parliament to pass legislation to last 100 years, enshrining the basis of super at 65 percent of the average wage - and wage-indexed forever. It has done so without any research as to whether this figure is fair and equitable.
"The Ministry of Social Policy research indicates it's not fair with respect to the living standards of those aged under 65. It's people under 65 who are paying.
"The basis of superannuation surely should be to provide a guarantee of an adequate income for those who are retired. But a system that results in a lift in living standards for some people when they reach their 65th birthday, doesn't appear to be sustainable.
"The Retirement Commissioner has been telling Parliament for more than a decade that one of the purposes of a sound super scheme is that it's inter-generationally fair. It appears our scheme isn't fair.
"This is the second blow to Dr Cullen's super scheme in the last three months. The knowledge that he would have to borrow all the money, made nonsense of his claims of pre-funding. Now, the government's own research shows the proposed level of super has no rational basis," Mr Prebble said.