Hon Peter Dunne
MP for Ohariu
Leader of UnitedFuture

Monday 19 September 2011

Dunne: Super debate shows ‘we know best’ attitude

The ongoing debate surrounding the age of entitlement for New Zealand Superannuation is a classic case of the ‘we know best’ attitude alive and well within Government and the bureaucracy, UnitedFuture leader Peter Dunne said today.

“Whether it is the Retirement Commissioner arguing for a raise in the age or the Prime Minister refusing to be pushed past 65, either way New Zealanders are still not trusted to make their own decisions about their retirement,” he said.

UnitedFuture’s policy is that New Zealanders should be able to take superannuation at reduced rates from 64 down to 60 or at increasingly enhanced rates if they hold off until between 66 and 70.

“We trust Kiwis to manage their own retirement age and lifestyle – choices they currently do not have.

“It is about individual choice and flexibility.

“Each year below 65 that superannuation would be claimed down to 60, would see a small reduction, and each year over 65 up to 70, it would be enhanced. The rate at 65 would remain the same.

Mr Dunne said the scheme is broadly cost-neutral with the superannuation scheme as it stands today, with the long term sustainability issue addressed by eventually making KiwiSaver compulsory.

“The arguments around whether superannuation should kick in at 65 or 67 are neither here nor there; the real debate should be how we can give Kiwis greater fairness and choice in deciding their financial affairs as they get older,” he said.

A couple who get $522 a week today when they turn 65 could choose to wait to 70 and get $840 a week. Equally if they instead chose to wait just two years and get super at 67, they would get $630 a week.

“Similarly, a single person could still collect the current $339 per week, or on today’s figures get $410 if they waited to 67 or $546 at 70.

“If they decide to retire earlier, then that person would receive a lesser amount for each year below the age of 65, until 60 If they chose to retire at 63 for instance they would receive $300 a week

“Kiwis deserve choice about how they want to shape their lives in retirement and when they want it to begin. It is our job to give them the tools to do that,” said Mr Dunne.

ENDS

© Scoop Media