NZ SUPERANNUATION: GREAT POLICY 

Dear Sir/Madam

My name is Alec Waugh, Historian also a recognized commentator on New Zealand Superannuation, with a Master’s in Public Policy.

I write on the Big-Ticket item of New Zealand Superannuation, concerned about the quality of discussion and knowledge about what I consider great policy, e.g. New Zealand Superannuation. Its so good, its intergenerational, praised by off shore commentators, as simple, effective and efficient. In comparision to nearly all OECD countries, its very cost effective. A solid platform for all retirement income requirements. No need to apologize or hedge one’s view, Smart Policy. Applaud it, treasure it.

Its intergenerational impact is such that 40% of NZ solely rely on it for retirement income, and the next 20% have limited savings to contribute additional funds to live upon. Its also taxed, often overlooked by critics. The younger generation due to changes in work practice, increased renting trends and also the lack of savings, are likely to require it, as much as todays retired or approaching retirement group.

There are many examples of poor policy, so when we have excellent policy, we need to applaud and to an extent enshrine such legislation.

New Zealand Superannuation is a big-ticket cost item, but nobody has come up with a useful alternative, indeed those suggesting a rise in age of entitlement, means testing or single lever policy changes, are always silent on both unintended consequences that would arise, nor the costs associated with an increased demand for accommodation supplements, increased unemployment benefits, and the negative impact on Māori and women.

I strongly caution against accepting that increased employment opportunity to cushion against rising costs, is available to the aged group. The definition re those considered to be in paid work is so loose as to be unhelpful, camouflaging the difficulty of finding regular and consistent paid work. All information I have suggests regular or well-paid post 65 yrs is the domain of the educated only, with entrenched bias against older workers alive and well.

Policy is always about choice, and if Government determines more revenue is required, rather than endorse the 1 lever knee jerk suggestions of raise the age of entitlement, means test, etc., the method to finance increasing costs, is to consider new taxation policy.

Capital Gains, inheritance transfers, GST rise, congestion Tax and most preferably productivity growth to cushion those rising costs. Stop apologizing or soft peddling when you decide upon new revenue streams, keep it simple, challenge those who will always link arms e.g. the Lobby groups. Call them out, for being stupid, or camouflaging their own agenda.

I hold the view well considered and presented new tax policy, is able to be accepted by the NZ voting public, don’t underestimate that reality when combatting the noise of the powerful lobby groups.

 

Regards Alec Waugh MPP/BA

98/357 Lower Queen St, Tasman, 7020