Flexi-Super Will Not Solve NZ Super Affordability Issues

United Future’s Flexi-Super policy will do nothing to address the growing financial burden of New Zealand’s aging population, ACT Leader John Banks said today.

“New Zealanders are healthier and are living longer than ever before. This is reflected in our changing demographics,” Mr Banks said.

“Since 1980, the number of people over the age of 65 has doubled. Statistics New Zealand predicts this age group will double again by 2036. In that time the cost of NZ Super is projected to increase from 9 billion dollars a year to 20 billion dollars a year in today’s terms.

“Not only does United Future’s Flexi-Saver policy do nothing to address the looming fiscal burden - it is likely to make it worse. As more people under the age of 65 access NZ Super the overall cost will increase.

“In his latest blog, Mr Dunne claims the Flexi-Super policy lets Labour ‘off the hook’ from their promise to raise the age. This claim shows a lack of understanding about the effects of this policy. The reason Labour pledged to raise the age is to ensure the cost of New Zealand super remains affordable. Mr Dunne’s policy fails to do that.

“Rather than just debate the issue of Flexi-Super, ACT would like to see all parties engage in meaningful discussion about the long-term issue of NZ Super affordability. Raising the age of eligibility would be a good first step,” Mr Banks said.

ENDS

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