Category Archives: Uncategorized

Who Do you trust!

The editor is taking a rest for a 4 week period. Kaspanz refreshes and updates articles weekly, and shortly after my return, a Xmas newsletter will be mailed. Meanwhile

WHO DO YOU TRUST

The new Coalition Government headed by Labour Prime Minister Jacinda Ardern has announced that the age of entitlement for New Zealand Superannuation will remain at 65 years, and contributions to the NZ Super Fund will recommence.

In May 2017, the then National Party Prime Minister Bill English announced a reset of entitlement age rising over time to 67, contradicting his promise of  only a year earlier that it will be sticking to its promise to not raise the pension age. This turn-around was immediately challenged by Labours then Leader Andrew Little, who stated Labour, was “utterly committed “to NZ Super entitlement at 65. New Zealand First now a prominent part of the new Government has always been committed and consistent, with the entitlement age being 65 years. Labour on the other hand, has not been consistent.

For those who track statements over time, you will recall that  on December 5th 2013 then Deputy Leader David Parker announced Labour” would raise the age of eligibility for New Zealand Superannuation to 67”, make Kiwi-Saver compulsory for employees and increase the Kiwi-Saver contribution rate if voted into power”. On 20 August 2014 Labour again announced they were using the latest information on the state of the Government’s books to push its policy of gradually raising the retirement age to 67, stating “If elected on 20 September 2014, Labour would gradually phase in an increased retirement age of 67”. David Parker a key component to those statements remains a key member of our new Government, appointed Attorney General, Economic Development and Trade Minister.

My information is our new Prime Minister wants the entitlement age to rise, but politically holds to the current policy position of 65 years.

The consumer is both concerned and confused over these frequently changing positions (NZ First exempt). Consumers want consistency &certainty on retirement income policy, with long lead in times for any changes that might occur, so saving habits and understanding can take place.

What is needed is a task force report, similar to the Tax Working Group 2010, on retirement income issues.

To my knowledge there has been no extensive review (Commission or Working Party) on retirement policy issues for nearly 30 years.  It is long overdue, and any political party making new policy announcement’s on the age of entitlement to NZ Superannuation or Kiwi Saver without such material, is vulnerable to the accusation of making policy on the hoof, and political expediency.

Posted by Alec Waugh

Brian Gaynor on Superannuation : Historical and the future

Brian does his best to camouflage his bias re New Zealand Superannuation, and his view that it needs substantial changes. He never acknowledges that the model is recognized by most as world leading, and its been so beneficial for women and keeping poverty levels low, and its universality a huge strength. Its also cost effective compared  too other countries.  However he is always full of ideas, statistics, and a consistent writer with many thoughtful comments, never to be ignored. His ability to produce week after week, excellent articles is profound.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11940232

 

New Zealand Superannuation

The new Government led by Prime Minister Jacinda Ardern , has announced that the age of entitlement for NZ Superannuation will remain 65 years. While coalition partner NZ First has always been consistent to that position, Labours own history has been contradictory and confusing. The shortly to be released Kaspanz Members newsletter, will detail those contradictions, asking the question “Who can you Trust”!

Meanwhile our own Guru on NZ Superannuation Michael Littlewood makes these comments

http://www.nzcpr.com/retirement-income-policies-what-we-know-and-what-we-dont/

Annuities and Retirement Savings

Martin Hawes article links to Kiwi Saver provider Simplicity Funds  announcing a Kiwi Saver first, a new fund designed to help people make their Kiwi Saver savings last throughout the retirement.

It’s in tandem with Life time Income, and guarantees to pay members an after tax income of at least 5% of their savings, per year, for the rest of their lives.

http://www.lifetimeincome.co.nz/news/news/2017/october/martin-hawes-looking-after-your-money-when-youve-retired

Posted by Alec Waugh. Acknowledge Life time Income for article