Ardern claims super at 65 is affordable

Stuff reports:

Labour leader is standing by her pledge that she would resign rather than raise the NZ Super age.

During the second leaders debate on Monday night, Ardern was asked whether she would raise the eligibility age for NZ .

She said she wouldn’t, and when pushed, said she would resign before raising the age from 65.

Bad enough Key made this pledge in 2008, but worse for Ardern to make it now as there is absolutely no pressure for her to do so.

National leader Bill English bit back, saying Ardern, who is 37, was letting down her generation, “because they are going to have to pay the bill for that”.

It is head in sand territory.

It wasn’t irresponsible to leave the age of eligibility at 65, despite New Zealand’s growing population, she said.

“It’s irresponsible not to save for it.”

In the past, there was good return on investment on the NZ Superannuation Fund – about 10 per cent, she said.

The Super Fund has a minor impact on affordability of future NZ Super – will eventually cover just 14% of the cost.

Here’s what the age will be in other countries:

  • Australia – 67 by 2023
  • Belgium – 67 by 2030
  • Denmark – 67 by 2022 and then increase by 20% of average life expectancy increase
  • France – 67 by 2023
  • Germany – 67 by 2023
  • Ireland – 68 by 2028
  • Netherlands – 67 by 2024 and then increase linked to average life expectancy increase
  • Norway – 67
  • UK – 68 by 2037
  • US – 67 by 2027

The only way superannuation will be affordable at age 65 in the future will be by massive tax increases.

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