Well, the 2020 elections, are upon us, so what are each of the political party’s saying about Retirement Income, not forgetting the doom and gloom commentators, who quote GDP deficit figures as a long-term crisis, crippling today’s youth, and inferred blame onto the senior generation.
“Lest we forget The NZ government, on our behalf, has one of
the best fiscal tracks in the OECD and even at the pessimistic projection peak in the net debt to GDP ratio of 54% our numbers will be better than pre-Covid starting points for many other economies”. (Tony Alexander)
Many countries pre- Covid had deficits far more than New Zealand’s current situation , and with inflation low and interest rates cheap as chips, lets have some realism in the future projections, something many of our economic commentators continually fail to understand. Always remember the numbers brigade are often not policy people nor always politically astute.
A quick snapshot summary of where the political parties stand . Refer to their policy statements re specific policy wording etc.
National still wants to raise Superannuation eligibility age to 67 in 2037 if elected .
The party would also double the amount of years someone would need to live in New Zealand after the age of 20 before becoming eligible for Superannuation, from 10 to 20 years.
National will also use Kiwi Saver retirement funds for business draw-downs
Labour is committed to leaving the age at which people qualify for NZ Super at 65.
New Zealand’s most liberal parliamentary party was the first political party to advocate lifting the age of eligibility, calling the current settings unsustainable, would probably do so fast, and also has a keen interest in means testing.
ACT would start immediately, lifting the age of entitlement to Super from 65 to 67 at a rate of two months per year finishing in 2032.
Universal superannuation should be available at age of 65
- Government should identify ways to allow flexibility in the age at which a person may receive superannuation.
- Superannuation payments should be indexed to the Consumer Price Index.
- Individual retirement savings should not be compulsory.
NZ First is the self-styled defender of Super, and its leader Winston Peters is committed to universal superannuation at age 65, and the party leans towards making it harder for immigrants to be eligible for New Zealand Superannuation, through changes to length of residency to reach Superannuation entitlements.