Now that the election dust has settled, what holds for retirement income issues? Kaspanz expects and hopes that the following will take place
1. Government adopts a steady as it goes approach and resists interference or change in New Zealand Superannuation or Kiwi Saver policy. Kaspanz accepts nothing ever stays in concrete for ever, but the principle of resisting change for change sake, knee jerk reactions, silly ideas and that historical political problem of one or two people feeding of an idea, and then acting as if there is a mandate for change, does not occur.
2. Government to resist Peter Dunne’s Flexi superannuation idea, which is superficially attractive but is unsound.
3. Media commentators like Fran Sullivan, New Zealand Herald is just one of many of the media commentators already drum beating about rising the age of New Zealand Superannuation. She like the others should be praising the model NZ operates (everyone else in the world does). The discussion of age eligibility and length of residency entitlement discussions cannot be hidden away, but the conversation should take place in the context of reinforcement of the soundness of New Zealand Superannuation and Kiwi Saver schemes, that there is no urgency re this topic, and final decisions must be signalled well in advance of any charge, if evidence related policy emerged that a change is required.
Well in advance for age change entitlement is a minimum of 15 years notice with incremental steps over 15-30 yrs. one approach. Always remember a change in age to 67 entitlements as some suggest, actively works against women, Maori and low income groups
4. Government to act on a section 70 review and to also address the issue of the taxation applicable to annuities. A solid base of information supports both suggestions, and it’s time actions to address the matters takes place.
5. Financial Services Council “Fair Tax for Savers Policy” needs further analysis and discussion
Posted By Alec Waugh-Chairman
Posted by Alec Waugh