Tuesday, July 28, 2009

Sir Roger on Super

Almost missed this.

ACT New Zealand Welfare Spokesman Sir Roger Douglas today accused Prime Minister John Key of emotionally blackmailing his colleagues to ignore much-needed superannuation reform by threatening to resign should any changes be made to superannuation eligibility.

"Since superannuation was first introduced in its current form, life expectancy of those who receive superannuation has increased 40 percent, while the age of entitlement has only increased 8.3 percent – this is clearly unsustainable," Sir Roger said.

"It's obvious that eligibility will need to change if we stick with the current system. The demographics show a decreasing number of workers to every superannuitant, from 4.5 today, to 2.2 in 2036. In other words, it will cost the average worker twice as much to fund other people's retirement.

"The public is aware of this and knows that these changes are inevitable. What New Zealanders don't realise is that moving the age of eligibility will not solve the problem and in 15 years we will be talking about moving the eligibility age again from 67 to 70.

"If we move from a ‘pay-as-you-go system' and encourage people to save for their own retirement, New Zealanders will be able to retire with more in the bank and stop politicians interfering in their lives.

"Under ACT's policy, each person would save the amount that they are currently taxed to pay for superannuation - and the average person would retire with over $1 million in the bank, at conservative interest rates of just four percent.

"We need an open and honest debate over the future of superannuation. That can only start with a Prime Minister who is willing to engage with ideas like those outlined above. Over the coming months it is my intention to make public a detailed policy in this area," Sir Roger said.

And I can't wait for those. Sorry for the copy/past verbatim but this was so succinct and so on the button I had little option.

7 comments:

FAIRFACTS MEDIA said...

Perhaps Super would be affordable as John Key wants if there weren't so many dpb mums to support.

Anonymous said...

If you think that's true give us some numbers to back it up Fairy. Otherwise you're just making noise.

Judge Holden

Heine said...

I just got in the post Sir Rogers book, "No second class citizens". It's well worth a read.

Anonymous said...

Oh crap. Compulsory super savings. Let's see - we could call it WinstonSaver! Or CullenSaver! Yeah! Good one!

How about we just stop all super now. And the dole and the dpb and the civil service. Want to stop bludhing and make people self-reliant? That will do it. This will do nothing

KG said...

Douglas is right on target with this. And while we're at it, let's have tax rebates for those with private health insurance.

Heine said...

It's an outrage that Sir Roger is being ignored by National. It's proof that Key is there simply to tinker about and keep Nationals image in Parliament - and not do anything significant that might do good.

I forgot who the enemy was!

Gary said...

Roger (I'm entitled to a holiday) Douglas might consider giving up some of his very generous, tax-payer funded subsidies before he gets carried away about taking everyone else's. I usually like a lot of what he says but he has shown this week that he is one of Parliament'ss biggest hypocrites!