Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Superannuation Time Bomb Still Ticking

United Future leader, Hon Peter Dunne, says the superannuation time bomb is still ticking, despite today's vote in Parliament in favour of the Government's plan to pre-fund a portion of superannuation.

Mr Dunne, who supports the legislation, says it is important the proposal is not oversold and seen as a panacea.

"It is a necessary first step only, which is the sole reason United Future is voting for it."

"However, many problems remain unresolved."

"Among these is the adequacy of the current superannuation payments: 65% of the average wage at 65 years sounds good, but that is only for married couples."

"For single people, the rate is nearer 41%, which is a lot less attractive, yet the issue is an important one."

"With women surviving men by an average of six years, many superannuitants will have to live on the lower rate for a long time, raising questions of adequacy."

"Over the next few years it may well therefore be necessary to look towards increasing the single rate of superannuation to nearer to 50%, which in turn will mean a likely increase in the overall from the current 65% to somewhere nearer 72.5%," Mr Dunne says.

Mr Dunne says pre-funding will not affect this, but it is an issue that future Parliaments will have to face up to, which is why he strongly favours a fresh round of multi-party talks being convened as a priority.

Ends


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Veronika Meduna: The Kaikoura Rebuild

A Scoop Foundation Investigation

Friday will be a big day for people north of Kaikōura – and for hundreds of construction workers who are racing to reopen State Highway 1 in time for the holiday season.

By the afternoon, the South Island’s main transport corridor will be open to traffic again, more than a year after a magnitude 7.8 earthquake mangled bridges and tunnels, twisted rail tracks and buried sections of the road under massive landslides. More>>

 

BPS HYEFU WYSIWYG: Labour's Budget Plans, Families Package

“Today we are announcing the full details of the Government’s Families Package. This is paid for by rejecting National’s tax cuts and instead targeting spending at those who need it most. It will lift 88,000 children out of poverty by 2021." More>>

ALSO:

Gordon Campbell: On Defence Spending, Alabama, And Dolly Parton

The spending lavished on Defence projects to meet the risks that could maybe, possibly, theoretically face New Zealand in future is breath-taking, given how successive governments have been reluctant to spend even a fraction of those amounts on the nation’s actual social needs. More>>

ALSO:

Members' Bills: End Of Life Choice Bill Passes First Reading

The End of Life Choice Bill in the name of David Seymour has been sent to a select committee for consideration by 76 votes to 44. It is the third time Parliament has voted on the issue in recent decades and the first time such a Bill has made it over the first hurdle. More>>

ALSO:

State Sector: MPI Survives Defrag Of Portfolios

The Ministry for Primary Industries will not be split under the new government, but will instead serve as an overarching body for four portfolio-based entities focused on fisheries, forestry, biosecurity and food safety. More>>

ALSO:

Gordon Campbell: On Vulnerable Kids, RNZ Funding, And Poppy

The decision to remove the word ‘vulnerable’ from the Ministry for Vulnerable Children could well mark a whole shift in approach to the care of children in need... More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages