Assertion as fact

November 23rd, 2013 at 9:00 am by David Farrar

Stuff reports:

Waikato pensioners are starving and raiding their KiwiSaver accounts to pay back mounting credit card debt.

This is a badly written story. It takes an assertion of a financial adviser and reports it as fact. It should report it as an assertion and credit it to the financial adviser.

Hamilton Budgeting Advisory Trust manager Clare Mataira said financial abuse of the elderly is a growing problem and she is pushing for banks to tighten their lending policies.

“We’re seeing people use credit cards for living expenses.

“I’ve seen more superannuitants in the last four to five years using credit cards for living expenses than in my whole career,” she said.

Not sure why, as the pension has increased well beyond the rate of inflation. Every year the purchasing power of NZ tends to increase. We have the most generous scheme in the world – universal, linked to the median wage, no means or asset testing etc.

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38 Responses to “Assertion as fact”

  1. WineOh (624 comments) says:

    Very clumsy article, and using small hearsay examples to push a barrow. Superannuitants “raiding” their Kiwisaver accounts? Wait… isn’t the ENTIRE PURPOSE of a Kiwisaver account to fund retirement??

    The wider issue is still important, and that is the affordability of living for senior citizens in NZ. Living cost increases often outpace inflation, and it certainly hits retirees. Those who have prudently saved for retirement and put their money in safe fixed interest investments are bleeding from low interest rates. Low rates are great for people like me who still have a mortgage but for someone more chronologically challenged … a Term deposit paying 4%, then taking away tax is barely keeping its current value after inflation much less paying living.

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  2. redqueen (552 comments) says:

    Another sad story from the ComPost. Not entirely surprising, but makes headlines.

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  3. SW (240 comments) says:

    Assertion as fact: ‘We have the most generous superannuation scheme in the world’. Just sayin…

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  4. wreck1080 (3,863 comments) says:

    Despite the extremely poor journalism, it makes me think about the official ‘inflation’ figure.

    The official inflation figure is a measure of the changing price of a bundle of common goods.

    This bundle includes things I consider non-essential items too.

    Is there a measure of inflation of essential items? ie, basic food/supermarket items, petrol, house/rental prices, power, etc ? That is probably what effects old people more.

    In fact, it would be nice if you could select an inflation profile to determine the effects on an individual level.

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  5. jcuk (663 comments) says:

    “”Assertion as fact: ‘We have the most generous superannuation scheme in the world’. Just sayin…””
    It just goes to show how far behind the rest of the world is and the petty minded irresponsibility of some younger people

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  6. Colville (2,242 comments) says:

    “We’re seeing people use credit cards for living expenses.

    I use a credit card for living expenses. Restaurants groceries and wine all go on the card. So what?

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  7. flipper (3,935 comments) says:

    It would be useful to examine the antecedents of the budget/financial advisor. The whole piece appears to have been inspired. And one SMELLS A POLITICAL SLANT..,….

    And yes, the Nat Super Scheme is probably the most generous in the world.
    Food prices? Pretty stable with the only the GST spike that was covered by an extra Nat Super increase.

    The biggest problem facing retirees who own their own homes are council rates. Until that6 disgusting mess is solved, period, it will be a festering sore for all Governments. Time for a local income tax to replace rates. To quote Hartwich “Tax legs , not things”

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  8. Anthony (789 comments) says:

    I wonder how many had been on overseas trips to visit the grandkids, etc?

    I doubt rates are causing much problem!

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  9. flipper (3,935 comments) says:

    Anthony…
    You speak crap, and know nothing.
    fixed income servicing costs over which there is no control = disaster for super kids.

    Doubt what you will. but first read “Free to Build” by Bassett, Malpass and Krupp, published by The New Zealand Initiative just this week.

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  10. Michael (903 comments) says:

    It’s all anti-bank crap. Clare Maitara is claiming banks shouldn’t give credit cards to old people because they don’t manage it well. When it’s those who don’t manage credit well who should not get credit cards from banks.

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  11. Anthony (789 comments) says:

    Flipper – attack the messenger – that’s a real good argument!

    So, are super costs too high or too low – not sure what you are saying should be done??

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  12. nickb (3,686 comments) says:

    These poor dipshits. Those evil fascists at the bank forcing them to borrow money at 15% when their only other alternative is a loan shark at 100%.

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  13. nickb (3,686 comments) says:

    And FFS, lending people money at commercial bank interest rates so they can meet emergency expenses is now “financial abuse”?

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  14. flipper (3,935 comments) says:

    flipper (2,773) Says:

    November 23rd, 2013 at 10:01 am
    Anthony…
    You speak crap, and know nothing.
    *****

    No “attack” on the messenger. Just telling it like it is.

    Nat Super? Leave it alone. Evolution will eliminate any problems.

    Pre ejaculation (political tinkering and economist hand wringing) will create problems.

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  15. BlairM (2,314 comments) says:

    Assertion as fact: ‘We have the most generous superannuation scheme in the world’. Just sayin…

    It’s not an assertion and it is a fact. New Zealand pays its senior citizens the most generous pension scheme in the world. There’s nothing remotely debatable about it.

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  16. holysheet (325 comments) says:

    Since when did pensioners haves kiwisaver accounts?
    Once over 65 you can cash in your KS account and get the proceeds. I wouldn’t imagine there was much in this account given the short time KS has been going.

    CLaire M went from managing student village Hamilton ending up at budgeting service. Never needed or had economic skills at uni. All wishy washy socialist crap. Very PC.

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  17. flipper (3,935 comments) says:

    holysheet (131) Says:

    November 23rd, 2013 at 10:43 am
    ****
    Good stuff !

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  18. Fletch (6,234 comments) says:

    This is a badly written story. It takes an assertion [...] and reports it as fact

    Happens all the time with climate change stories.

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  19. Tauhei Notts (1,677 comments) says:

    Just as pokies are a tax on the ignorant, so are credit card borrowing costs. 22% is the stuff of Shylock.
    I got my new superannuiatants’ card from ANZ Bank. I was told that I could not use it at a cash machine until the next day as the details were getting loaded up. My response was that if I was stupid enough to pay 22% interest then I must be an imbecile. At 65 years of age one should be lending money, not borrowing the stuff.
    But when one sees the level of support that the Greens get, you realise that there are a large number of stupid people for the banks to cater for.

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  20. cha (3,920 comments) says:

    Happens all the time with climate change stories.

    Benghazi!

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  21. Fletch (6,234 comments) says:

    cha, facts can be inconvenient things.
    In this case they don’t support you.

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  22. cha (3,920 comments) says:

    Really, like the 60 Minutes piece that’s been sent to the great 404 in the sky because a security contractor named Dylan Davies gave an account that CBS could no longer trust to be accurate. Those facts?.

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  23. wikiriwhis business (3,883 comments) says:

    Credit car debt is the road to slavery and the banks let anyone burrow to create the debt.

    Curious that people haven’t learnt this lesson though.

    Take away credit and the monster of inflation is tamed. The Reserve Bank won’t tell us that.

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  24. jcuk (663 comments) says:

    Wiki … credit cards can be what you say but if used with intelligence can be a boon in evening out expediture and meeting sudden needs….I treat my cards as monthly accounts and have been doing so for the past few years and spend very little cash. Withdraw $100 and it usually lasts me best part of a month. NO CCs are great for the sensible person who lives within their means … instead of just the ‘rish’ have monthly accounts it is available for all and the incomes the banks make helps to keep them strong and safe … in Australiasia anyway.

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  25. wikiriwhis business (3,883 comments) says:

    jcuk

    All gud except cash doesn’t create interest. Hence the move to the cashless society

    Or is that a conspiracy theory as well?

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  26. jcuk (663 comments) says:

    rich not rish in above :)

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  27. jcuk (663 comments) says:

    Wiki …. Cash removes your money from the bank where it could be earning you interest :)

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  28. wikiriwhis business (3,883 comments) says:

    ‘Cash removes your money from the bank where it could be earning you interest ‘

    But the IRD and govt hate cash cause they can’t track our movement and supply third parties with our spending habits.

    As the Auckland Transport does with HOP cards

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  29. thor42 (971 comments) says:

    Old age and retirement are *completely predictable* and can (and SHOULD) be planned for.

    If you haven’t saved enough to get by on by the time you retire, it’s your OWN damned fault. End of story.

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  30. OneTrack (2,966 comments) says:

    wiki -11:47 -How do you get on with paying for the bus with bitcoin?

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  31. wikiriwhis business (3,883 comments) says:

    ‘wiki -11:47 -How do you get on with paying for the bus with bitcoin?’

    you obviously aren’t aware Bitcoin is acceptable currency in Europe and a huge threat the bankers are very worried about.

    I’m sure technology could expand to scanning USB’s quite easily

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  32. Ed Snack (1,833 comments) says:

    Cha, so the original Benghazi story, how Clinton refused security, the administration ignored warnings of an attack (on 9/11 for christ’s sake), and then when the attack happened abandoned those there so Obama could get a good nights sleep to attend a fundraiser in Las Vegas…isn’t a scandal ? And then flat out lying about how it was caused by a Video and arresting someone on a trumped up charge to add “veracity” to that lie, that not a scandal either ? The administration was asleep at the wheel and abandoned those in Benghazi to be killed because they were utter incompetents without clues, and after all a big, big, fundraiser in Las Vegas is more important than 4 obscure peoples lives ain’t it ?

    It is admittedly hard to get to the bottom of it all as the State department has refused to testify before Congress, put blanket no talking bans on staffers, and hidden those involved under some sort of fake protection scheme (or not fake if you think of it as a Clinton/Obama protection scheme). But it worked as intended, all they needed to do was to keep a lid on their obvious complicity in the death of Ambassador Stevens and the others until after the election, nothing else was important.

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  33. cha (3,920 comments) says:

    Lots of assertions there Ed.

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  34. wikiriwhis business (3,883 comments) says:

    ‘so the original Benghazi story,’

    And let’s not forget Fast and Furious, govt gun running to Mexican drug cartels which Eric Holder begged the supreme court not to pursue.

    Bank of America was also implicit in laundering funds for Mexican drug cartels.

    Then the Libor rate rigging.

    and you tell me conspiracies never happen

    You dreaming mate

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  35. Harriet (4,758 comments) says:

    “…..credit cards can be what you say but if used with intelligence can be a boon in evening out expediture and meeting sudden needs….I treat my cards as monthly accounts and have been doing so for the past few years and spend very little cash….”

    They’re good for reducing the daily interest rate on your mortgage by putting all your pay into your homeloan account and living off your card for the 30day period. Although it is better suited to medium/higher income earners.

    I know people who go to restaurants with friends – take everyone elses cash – and then pay for the entire bill on their card. The very next day they deposit the cash into their homeloan account and therefor pay less daily interest for the remainder of the 30day period. They do this with any other cash they get too. Although you do have to manage your income and expenditure over the entire month so you can payout your card by the end of the 30day interest free period. If you can be responsable with money then they are very good. However they are designed to trap you into being careless and spending more than you should.

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  36. jcuk (663 comments) says:

    thor42 (564) Says:

    November 23rd, 2013 at 12:34 pm
    If you haven’t saved enough to get by on by the time you retire, it’s your OWN damned fault. End of story.

    Thor42 is a very lucky man and obviously has not experienced serious reverses in his life as yet otherwise he wouldn’t make such a crass statement.

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  37. Bob (496 comments) says:

    You can’t make sweeping generalisations about people. You have to know the individual circumstances. Some have never earned enough to save. Others have had business failures or lost jobs. Others still have been plagued by medical problems. A lot of people thought they had adequate savings until the finance industry collapsed. For some it is their own fault.

    Many certainly have just enough to live on with nothing to spare for the unexpected. Living must be a strain for them.

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  38. Steve Wrathall (282 comments) says:

    “Waikato pensioners are starving and raiding their KiwiSaver accounts…” of the small amount they would have put in since it started, plus the $1000 that was raided from taxpayers to kickstart them into good financial habits.

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