The biggest thing that’s not in the Budget

Press release: ACT New Zealand
May 26, 2016. 11:05am

Budget 2016 is National’s eighth Budget to ignore New Zealand’s largest fiscal problem, says ACT Leader David Seymour.

“People of my generation don’t expect to get Super at 65, but we would like to know what’s happening. It’s sad that the Government has effectively banned a discussion, let alone action.

“In our lifetime we will go from five taxpayers per superannuitant, to two taxpayers per superannuitant.

“While an impotent opposition has allowed this Government to ignore the issue, history will look back unkindly on our failure to make a plan.

“We have a rapidly aging population, with fewer workers paying for more pensions. The cost of NZ Super is ballooning by over a billion each year. Bill English may be able to balance the books for 2016, but ACT thinks the government should look further ahead.

“Treasury has projected, based on current trends, by the time current university students retire the government will be in debt by 198 per cent of GDP. That’s worse than Greece.

“Rather than waiting another decade and suddenly raising the age of NZ Super eligibility, the government should lay out a plan to gradually raise the age, to 67, or 68 over the coming decades. It wouldn’t affect current retirees, but it would give future retirees the chance to plan their finances.

“To keep ignoring this is to keep failing future generations.”

ENDS

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