National must get its head out of the sand and make the changes needed to ensure universal superannuation is sustainable, says Labour Finance spokesperson David Parker.
“The Retirement Commissioner’s analysis shows once again how irresponsible National is being on superannuation. She joins the Treasury, the OECD and most economists who say we must address the age of eligibility.
“Labour’s policy is to ensure the sustainability of New Zealand superannuation to protect it for future generations. To do this our policy includes gradually raising the retirement age to 67 beginning in 2020, while protecting the vulnerable from those changes.
“Labour is committed to ensuring that those who cannot work past 65 in their normal occupation will receive the equivalent of super if they need it. This is important and National’s refusal to deal with these issues leaves those people vulnerable to sudden changes without adequate protection.
“Super has already gone up from $7 billion in 2008 to $11 billion this year. It will cost $30 billion by 2030. The proportion of people in the workforce to each superannuitant roughly halves in the decades to come.
“In just two years the cost of superannuation will be more than the Government spends on putting our children through the education system from early childhood to university.
“We cannot make the cost of paying for retirement more important than our children’s future. Everyone agrees on that.
“John Key and Bill English know that super isn’t sustainable. But because John Key made a foolish promise back in 2008 to resign rather than raise the retirement age, he is putting our world-class super scheme at risk,” says David Parker.
9 October 2013 MEDIA STATEMENT