The Herald reports:
New Zealand has one of the least generous pensions relative to the working wage, according to research by the Organisation for Economic Co-operation and Development (OECD).
Retirees in the Netherlands receive more than 100 per cent of their country’s average working wage but Kiwi superannuitants get just 43 per cent – ranking it 6th worst equal with Australia.
But this is not comparing apples with apples.
We are almost unique in the world in having a superannuation scheme that is universal with no means testing or asset testing, and where employees do not contribute to the scheme (no compulsory contributions).
There is no other state scheme as generous in my view.
But increasing the retirement age was still on the agenda for many: half of the OECD countries planned to do so in the future, including some that had linked it to rising life expectancy.
Under New Zealand’s Labour-led Government the age of eligibility for New Zealand Superannuation is set to stay at 65.
Countries lifting the age to over 65 are:
- 67 – Australia, Iceland, Israel, Norway, US
- 68 – Finland, Ireland, Portugal, Slovak, UK
- 71 – Italy, Netherlands
- 74 – Denmark
It is madness that we are not lifting the age also.