Denis O’Rourke MP
Associate Spokesperson for Superannuation
28 August 2013

“Flexi” Super – The Buzzword That Means Downsizing

New Zealand First has pledged to fight the unfair and unworkable “flexible” superannuation proposal every step of the way to prevent the Government and its flexi-puppet Peter Dunne changing the superannuation system.

Under the proposal people can choose their retirement age from 60 on, with those retiring at the earliest age receiving a considerably lower pension than those people who chose not to collect their superannuation until they are older.

Associate Superannuation spokesperson Denis O’Rourke describes the proposal as ill-conceived and the first stage of an all-out assault on the living standards of senior citizens.

“This scheme has been seized on by the Prime Minister to break his promises about maintaining superannuation at age 65 and the current amount.

“The poorest people are going to be paid less because without jobs they will apply for super as soon as they can (at 60 years).

“The amount paid to a 60 year old is too low to live on so they will then apply for a social welfare top-up and this will be means tested. This is the thin end of the wedge as full means testing will inevitably follow.”

Mr O’Rourke points out that the flexible system is also a tax dodge to favour the rich.

“While still earning they do not want the super payments, which will be taxed at a higher rate. If they wait until they are not earning before applying for superannuation they will then get more and pay less tax.

“Superannuation as a universal, non-means-tested entitlement will be forever compromised. This is what National wants, and Labour is just a step behind with lifting the age of eligibility to 67.

“This new ‘flexible’ superannuation scheme is as flexible as its author – and it flexes downwards,” says Mr O’Rourke.

ENDS

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