Hon Phil Goff
Leader of the Labour Party

Superannuation entitlements will be cut or taxes increased

Nationals’ claim that it can stop funding superannuation but keep paying current levels of entitlements is fundamentally dishonest, says Labour Leader Phil Goff.

“The National Government’s actions have created a $37 Billion hole in the superannuation fund,” Phil Goff said.

“That means either superannuation entitlements will in the future be cut, by raising the age of eligibility or means testing it, as the Australians have done.

“Alternatively it will place a huge burden on those under the age of 40, who will face heavier taxes to pay for the one in five New Zealanders who will retire over the next 10 to 20 years, with much higher bills for superannuation and health care,” Phil Goff said.

“Without consultation with other parties National has broken the consensus entered into on the future of superannuation and stripped New Zealanders of certainty about their retirement income.

“By removing the requirement that the current baby boom generation part pre-fund their superannuation now, National has engaged in intergenerational theft.

“The burden on generation X and Y will be heavy and unfair, and the likelihood they will rebel against it removes the certainty that the baby boomers will get current entitlements when they retire.

“It was revealed today that some Treasury officials believed that it was not financially prudent to cancel payments to the Superfund.

“Bill English’s retort this morning on Q and A that we can afford superannuation at 66 percent of the annual wage without saving lacks credibility.

“He and National have not owned up to the truth. Mr English and Mr Key have left a crisis for a future Government to resolve when it will be much harder to do so.

“It is disingenuous for Mr Key to say he will resign if entitlements are cut, he will not be around when a future government will be forced to do so by the actions taken by National in the 2009 Budget,” Phil Goff said.

ENDS

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