Superannuation is not just inflation indexed, like other benefits, but also linked to the average wage – 65% for a couple.
New Zealand has the most generous superannuation scheme in the world. There is no other country which has no income testing, no asset testing, universal coverage and set at 65% of the average wage.
The entire developed world faces a crisis in a generation or so, when the superannuation and health costs of an aging population are projected to double as a proportion of GDP. Even Dr Cullen admits that the age of eligiblity will probably have to rise at some stage in the future.
Therefiore there is almost nothing more irresponsible that bribing Grey Power by promising to take the most generous scheme in the world, and make it even more generous – NZ First is promising to increase the rate to 72.5% of the average wage.
This is pork barrel politics at its worst. It will cripple the country for future generations, but as long as it gets Peters 2% more in the polls, he will do it.