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John Key Wrong To Smother Superannuation Debate

Former National Party leader Don Brash says Prime Minister John Key was wrong not to signal a debate on age eligibility for National Superannuation.

Speaking on TV3’s The Nation, Dr Brash said Mr Key’s election promise not to alter the scheme was unnecessary.

“I think he's wrong in that judgement, I think he could make that change, because most New Zealanders recognise the need for a change.”

Dr Brash said the cost of Superannuation is forecast to reach eight percent of Gross Domestic Product (GDP) by 2050, a rise from its present level of 4.4 percent of GDP.

He said universal National Superannuation is unaffordable, and the age of eligibility needed to go up from 65 to 67.

New Zealand currently has 553,000 people over the age of 65, a number predicted to reach 1.35 million by 2050.

Dr Brash said the Prime Minister did not have to introduce the changes while in Government.

“We don’t have to do this in a hurry, it doesn’t have to be done today or tomorrow or next year even, but let us signal for the sake of the people who are not yet retired, that they may have to work an extra six months, nine months, 12 months or whatever in due course.

“I think if you flag it far enough ahead, make it gradual and I've explained that other countries are doing it, I think it would not be a vote loser.”

Changes to Superannuation schemes have already begun in many other countries.

The United States, Germany, Denmark and Australia have all signalled they will raise the eligibility age to 67.

ENDS

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