Hi  all

The Editor has been in Europe. Good to be back, the retirement issues in the UK, Germany and France appeared to be remarkably similar to NZ. Most OCDE issues are mirror images, we need to be far more aware of whats occuring elsewhere, and not try and invent the wheel.

I wonder if Minister Costello has a strong knowledge of the AustralianRoyal Commission into Aged Care Quality and Safety, Estblished  was established on 8 October 2018. The Royal Commission inquired into the quality of aged care services in Australia, whether those services were meeting the needs of the community, and how they could be improved in the future.

What were the findings of the Royal Commission into aged care? The systemic problems the Royal Commission has identified include inadequate funding, variable provider governance and behaviour, absence of system leadership and governance, and poor access to health care. It should be easy for older people to access the aged care they need.

https://www.royalcommission.gov.au › aged-care

NZ SUPER

*A recent  post contained the 2024 summary of the NZ Acturies report on NZ Superannuation, and the headline comment by Retirement Commissioner Jane Wrightson.

This post follows up with the recommendations ofthe 2024 Retirement Commission Super Issues and Options

What were the recommendations/conclusions  within the 2024 Retirement Commission NZ Super Issues and Options

•  This paper attempts to weave together several strands that impact different aspects of the retirement system in general and NZ Super in particular. The paper concludes:
• NZ Super is the Government’s primary contribution to financial security for a person’s later life and ensures an adequate standard of living for older New Zealanders.
• The system needs to be fair, stable, and affordable.
• NZ Super is the eighth least expensive pension in the OECD, as a proportion of GDP.
• NZ expenditure would continue to be well below the OECD average in 40 years without any change to the age of eligibility.
• The current age of eligibility for NZ Super is not low relative to other OECD countries: 70% currently have a pension age of 65 or below, reducing to 53% by the 2060s.
• Discussion around changes to NZ Super needs to consider a wide range of data to inform decisions.
• Any change to the age of eligibility would disproportionately disadvantage manual workers, carers, and those they care for, and those with poor health, due to differences in savings and wealth and ability to remain in paid work after the age of 65. Women, Māori, and Pacific Peoples are overrepresented in those groups.
• Extra benefits to support people through to a later age of eligibility would reduce fiscal savings from raising the age.
• Introducing income-testing would be fairer than raising the age of eligibility.
• Political support for a stable long-term system is crucial. We recommend:
• A long-term political accord is important to best serve citizens and there is an opportunity to secure this. The Government should encourage Te Ara Ahunga Ora Retirement Commission to investigate the possibility of a new cross-party accord on the retirement income system to provide stability and certainty for future generations of retirees.
• At the very least, the number of parties who have made a political commitment under the New Zealand Superannuation and Retirement Income Act 2001 could be expanded. This would signal their ongoing commitment to current policy settings and impose special obligations on the Government to disclose whether consultation has taken place with other listed parties and the results of the consultation.
• The age of entitlement to NZ Superannuation should remain at 65.
• Only if fiscal savings are essential,
• alternatives to raising the age of eligibility should also be considered, and eight options have been outlined in this paper.
• income-testing is a fairer way to reduce expenditure on NZ Super, compared to raising the age of eligibility, so NZ Super would not be paid to those who continue to earn significant income (for a period after 65, or while significant income is being earned). • enhancements to KiwiSaver should also be simultaneously considered with any NZ Super change, to assist future retirees to maximise their private savings.
• A legislated and periodic review (for example every nine years or so) should be undertaken to enable environmental, fiscal, and population changes to be formally and independently assessed by Government. This will provide data and a framework to inform political debate and decision-making and help encourage trust in the system which is important for younger people as they navigate their lives and try to save for their retirement