Superannuation Genie Out of Bottle

“Phil Goff’s announcement of Labour’s election policy to increase the eligible age from 65 to 67 has let the genie out of the bottle”, said Mr Roy Reid, Grey Power Federation President. “An increase in the eligible age to receive basic NZ Superannuation appears inevitable, in line with international trends and the fact that people are now living longer with many continuing to work beyond 65 by choice”

“It is highly likely the National Party will follow a similar line once the personal
undertaking of Prime Minister John Key not to change the eligibility age during his term is no longer relevant.”

“Grey Power will study the proposal carefully, and insist that any changes made are accompanied by appropriate, and indeed generous, transition arrangements and recognition that many people, because of the physical nature of their work cannot be expected to extend their working lives.”

There is a world of difference between working for the Government in Wellington in a comfortable office on a six figure salary and pouring concrete on an Auckland building site, or hauling a net full of snapper onto a heaving fishing boat off the Taranaki coast. Working to 65 is often extremely difficult for people in many industries, and a strong case can be made for reducing the eligibility age to 60 for workers in this category.

The bottom line for Grey Power is a fair go for such people, and other workers who have been unable to maintain full income jobs in their later lives, a position many older people find themselves in in the current difficult economic times, with the clear prejudice against employing older workers.

The other key element that must be retained is the universality of NZ Superannuation with the sole eligibility criteria being age, and its linkage to the CPI/average wage index.

It is also very important to recognize that many older people and workers on even middle income wages have not had the ability, previously and currently, to make significant personal savings even with Kiwisaver subsidy assistance. The superannuation reduction is linked to increased personal savings which in many cases cannot happen.

It is an irony that the politicians, public servants, and other people proposing reductions to NZ Superannuation for the broader New Zealand population are invariably receiving high salaries, have strong saving capabilities, and good prospects of working happily beyond 65 in interesting well paid jobs.

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