The age of super

Katie Bradford-Crozier at NewstalkZB reports:

Politicians have rejected suggestions of raising the retirement age to 67.

Retirement Commissioner Diana Crossan says politicians have their heads in the sand over the affordability of New Zealand Superannuation.

She wants it raised to 67 years by two months a year from 2020 to 2033.

Prime Minister John Key says he has more important things to do than look at raising the retirement age.

He says that’s not going to happen under his watch as he has a lot of things to consider between now and 2020 when it comes to the economy.

Mr Key says he’s given a commitment to Kiwis that he’s not going to raise it.

Labour leader Phil Goff says it’s just not practical.

He says it just makes it harder for people who have worked hard all their lives, who turn 65 and are ready to retire.

The age will rise – it is inevitable. The only issue is how much advance notice we give people.

The increase suggested by the Retirement Commissioner seems reasonable to me. But I would do more than just tinker with the retirement age.

I would lock the current super scheme in place for those over 50. They need certainty so they should not have to worry about future changes.

But for those retiring after 2025 or even 2030, we should have a new sustainable superannuation scheme. The level of payment, the floor and ceiling, issues such as income and asset testing should all be considered. It should be a multi-year conversation or debate, and once concluded then set into place for the post 2030 retired.