Bill English National Party Leader

23 June 2002

National committed to securing super

"Ensuring security in retirement to all New Zealanders is why National is committed to the current superannuation arrangements," says National Party Leader Bill English.

Announcing National's Superannuation Policy, today, Mr English reconfirmed National's commitment to the current superannuation scheme. He says this is both sustainable and affordable.

"While both major political parties agree on this, National does not support Labour's Cullen Fund because the concept is fundamentally flawed. New Zealanders are going to be locked into paying higher taxes for the next 25 years to pay for the $2 billion commitment it will require every year.

"Yet the vast majority of this money will be exported overseas to the benefit of other economies not New Zealand's. At best, the Cullen Fund will only provide around 10 per cent of New Zealand's superannuation needs in 25 years time - there's nothing secure about that."

Mr English says retired people's - as well all other New Zealanders' - standard of living is ultimately dependent on the performance of our economy.

"National's economic policy is a serious and substantial plan that will boost our long-term, economic prospects and growth rates, which will ensure - among other things - security of income for those in retirement and those retiring in the future.

"For most retired people, superannuation is the only - or their biggest - source of income. Since super is linked to wage increases, it is vital that the economy performs because as real wages go so do people's standard of living."

Mr English says National will also encourage people to save for their own retirements.

"To help them, we will introduce a tax incentive to encourage long-term savings for retirement income. This will be in the form of an upfront rebate for savings up to $100 a fortnight or $2600 a year going into long-term savings schemes."

He says this will entitle people who are saving the maximum amount to a tax rebate $390 a year.

"National is committed to guaranteeing security in retirement as well as encouraging people to save for themselves and our superannuation policy does just that," Mr English said.

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