Kerre Woodham Mornings Podcast Kerre McIvor: We need to raise the superannuation age
Jul 5, 2021
06:54
The sound of flapping you hear in the air is the sound of all our chickens coming home to roost.
Treasury's most recent analysis of the Government's long term finances sees the country facing an interminable cycle of debt and deficits, with debt levels rising to more than two trillion dollars in 40 years if it doesn't get the costs of an ageing population under control.
The cost increases will be driven by the cost of healthcare and superannuation, which will both increase under the weight on an ageing population.
In 20 years, life expectancy for women has risen two and a half years; for men, it's three and a half years. And that's only going to keep going up.
There was much more bad news from Treasury - the cost of government spending will swell to 43 per cent of the economy, tax revenue won't keep up, debt will be five times larger than it is today, putting us on a par with the Greece of today, but let’s not dwell too much on the gloomy.
They are only projections and things can change, but we really do have to talk about raising the age of superannuation entitlement, and we need to do it sooner rather than later.
Both National and Labour have talked about raising the age, and according to
former Reserve Bank economist Michael Reddell on the Mike Hosking Breakfast, someone is going to have to go into an election saying we are going to put the retirement age up.
Who will pull the trigger?
We simply have to. And I know that there are plenty of hard working people who are simply knackered by the age of 65.
They have worked hard physical jobs, their bodies are worn out and all they want is a few years where they can go fishing or pootle round the country in a camper van doing the things they never had time to do while they were slaving away in all weather and every condition.
So let people access their Kiwisavers at 65 or even earlier, and have the super kick in at 67 or 68.
Australia has moved the pension age to 67 from 2023, Denmark its's 67 from 2027, in the UK 65 to 66 years by 2026, to 67 years by 2036, and to 68 years by 2046. You get the drift. Everyone is seeing the writing on the wall.
Treasury's most recent analysis of the Government's long term finances sees the country facing an interminable cycle of debt and deficits, with debt levels rising to more than two trillion dollars in 40 years if it doesn't get the costs of an ageing population under control.
The cost increases will be driven by the cost of healthcare and superannuation, which will both increase under the weight on an ageing population.
In 20 years, life expectancy for women has risen two and a half years; for men, it's three and a half years. And that's only going to keep going up.
There was much more bad news from Treasury - the cost of government spending will swell to 43 per cent of the economy, tax revenue won't keep up, debt will be five times larger than it is today, putting us on a par with the Greece of today, but let’s not dwell too much on the gloomy.
They are only projections and things can change, but we really do have to talk about raising the age of superannuation entitlement, and we need to do it sooner rather than later.
Both National and Labour have talked about raising the age, and according to
former Reserve Bank economist Michael Reddell on the Mike Hosking Breakfast, someone is going to have to go into an election saying we are going to put the retirement age up.
Who will pull the trigger?
We simply have to. And I know that there are plenty of hard working people who are simply knackered by the age of 65.
They have worked hard physical jobs, their bodies are worn out and all they want is a few years where they can go fishing or pootle round the country in a camper van doing the things they never had time to do while they were slaving away in all weather and every condition.
So let people access their Kiwisavers at 65 or even earlier, and have the super kick in at 67 or 68.
Australia has moved the pension age to 67 from 2023, Denmark its's 67 from 2027, in the UK 65 to 66 years by 2026, to 67 years by 2036, and to 68 years by 2046. You get the drift. Everyone is seeing the writing on the wall.
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