The Editor has been away, returning due to unforeseen circumstances early.
2023 with a new PM, Cyclone issues, and inflation continuing has many impacts. Watch this space.
Mean while while the editor gets organized , Lifetime Income produced this article in one of their recent newsletter.
Keep superannuation entitlements unchanged
The age of eligibility for New Zealand Superannuation (NZ Super) must remain unchanged at 65, according to the Retirement Commissioner Jane Wrightson.
And the threshold for getting the Accommodation Supplement should be amended to make more elderly people eligible for it. These are two key recommendations put forward in Wrightson’s 2022 Review of Retirement Income Policies, which was unveiled this week.
Raising the age of entitlement for NZ Super has often been politicised, Sir John Key said not on my watch, followed closely by Jacinda Arden, who said again, not on my watch. Historically, National Party has twice campaigned to gradually raise it to ease its long-term costs. And just this morning Leader of the National Party, Christopher Luxon, has committed to raising the age from 65 to 67.
One thing we are clear on, Wrightson believes the age of eligibility to access NZ Super should remain the same. Alternatively, if the age is raised then a more complicated system will need to be considered to reduce the inequity that a change to the qualifying age would bring. “Any increase to the age of people accessing NZ Super will only further disadvantage women, Māori, and Pacific People,” she said.
In her report, Wrightson said 40% of people aged 65 and over had virtually no other income besides NZ Super and another 20% had just a small amount more.
That was a problem even for people who own their own home, but was even worse with a projected increase of elderly renters. To deal with this problem the report recommends, the Accommodation Supplement should be made easier for retired people to get. At present, the Accommodation Supplement is means tested to people with cash assets below $8,100. Wrightson said this had not been raised for almost 30 years.
“We recommend that the Government increase the cash asset test for the Accommodation Supplement to at least $42,700 per person and consider whether annual inflation adjustments are appropriate,” she wrote.
Getting to retirement with a nest egg that can help supplement your income requirements, is only the first step. Drawing down the capital safely through retirement life is the next step.As the leading provider in retirement income solutions, Lifetime knows the struggles those in retirement face when it comes to generating income from their retirement savings (also known as decumulation).