A binding referendum on superannuation

Stuff reports:

ACT wants a binding referendum on the future of New Zealand’s superannuation and raising the retirement age.

Leader David Seymour says a public vote would end the “Mexican stand-off” between National and Labour, as pressure on the system grows. He believes it is untenable to keep paying out super from aged 65.

In a speech to his party’s annual conference yesterday, Seymour pitched the idea of an independent body to oversee a series of referendums on future of superannuation. And he pointed to an upcoming public poll on changing the flag.

“National won’t address the issue, Labour tried and are now backing away. This is a political Mexican stand-off, with the guns pointed at the younger generations,” he said. 

I’m very supportive of the ACT proposal, especially because it is not just about the age of eligibility.

The idea of a two stage referendum, as we had with MMP and upcoming with the flag, is very sound.

Let an expert panel put up say four different future superannuation schemes, each fully costed. Then New Zealanders can vote on which of the four we prefer and have that go up to a final vote against the current scheme (which is unaffordable).

A key aspect is the current scheme would remain in place for current retirees, and those near retirement. A new scheme would apply say to those aged under 50 only.