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Pay Parity for caregivers possible if retirement age raised

Increase Retirement Age by Three Months and Pay Parity for Caregivers is Achievable

The New Zealand Aged Care Association (NZACA) recommends increasing the retirement age by three months to bridge the pay differences between caregivers working in the private and public sectors.

“An increase in the retirement age by three months would generate about $140 million dollars which is the amount needed to achieve pay parity for caregivers between the public and private sector as modelled by the Human Rights Commission,” says the CEO of NZACA, Mr Martin Taylor.

To lessen the blow, this could be achieved over three years with a one month increase each year.

“Funding for the aged-care sector in New Zealand needs to increase so that the country is ready for the grey tsunami that will come soon when our Baby Boomers reach retirement age,” he said.

“This policy proposal shows the lack of funding for the aged-care sector is caused by policy choices and not by the economy. Putting off addressing the needs and underfunding of the sector cannot continually wait for the mythical perfect economy,” Mr Taylor said.

It is also important to understand that the government’s books can still be balanced while achieving pay parity and ensuring the quality of life for the elderly is maintained from one year to the next.

“We believe if the public were asked to decide on whether to increase the retirement age by one month per year for three years to ensure pay parity the overwhelming majority would say yes”, said Martin Taylor.

“We also believe the public would seriously support increasing the retirement age by marginal increments if the savings were invested back into aged care services, thereby ensuring the elderly’s quality of life was protected and enhanced when they needed care.”

ENDS

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