NZ Super Cost Less Than Forecast

Auckland University’s latest Pension Briefing forecast that future the costs of NZ Super  be less than previously estimated.

Comment by Alec Waugh, Kaspanz Chair:-

The Treasury’s latest estimates of the long-term cost of New Zealand Superannuation were released on 11 July. Despite often-gloomy predictions about the “unaffordable” NZS, what is the scale of the affordability problem? (2013) The trend of New Zealanders working longer is cutting into the costs of funding NZ Super, and those working past 65 had doubled over the last 3 decades, with it likely to double again over the 3 decades. NZ Super is taxable and the aged group is contributing in this manner, and  many other ways towards reasonable fiscal    outlooks and outcomes. Net costs of Super have been revised downwards in the latest revision, and this indicator counters the crisis rhetoric of many commentators, who also often use gross figures to exaggerate their costing assumptions. Remember long term projections e.g. 2050 are practically worthless as  accurate assumption tools.

One thought on “NZ Super Cost Less Than Forecast

  1. swlthll Post author

    To reinforce Alec’s comment about the variability of long term forecasts, the forecast figure, for 2060, as a percentage of national income, was 9.7% in 2000, now changed to 6.6%! Fifty percent changes indicate the guesstimate nature of these predictions

    Reply

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s