@NewsroomNZ @bernardchickey Good comments today on radio today @bernardchickey RBNZ soft on pushing back on asset p… https://t.co/m0Sh7fohHG
7/12/2017 6:07 PM
@NewsroomNZ @bernardchickey Hard to lead with thinking based on incomplete model of the economy: inflation targetin… https://t.co/kDCAMJM1HV
7/12/2017 8:27 AM
RT @TheMinskys: Watch @StephanieKelton brilliantly explain why we should stop talking about the #deficit as a problem and start talking abo…
5/12/2017 8:08 PM
RT @TheMinskys: "Public-private partnerships conflate public and private interests, and in conflicts between them, the private interests wi…
26/11/2017 12:02 PM
RT @PolicyObsAUT: Is the NZ public service restructured too much? New Briefing Paper by Julienne Molineaux from @autuni https://t.co/BUISP…
26/11/2017 12:02 PM
RT @Ozlandscapes: #Lateline story on demise of Darling River, at hands of irrigated cotton, is yet another example of how money determines…
26/11/2017 11:58 AM
@mrmedina @Tat_Loo At best redundant. ..
25/11/2017 5:46 PM
@liamdann 2006 again?
22/11/2017 8:18 PM
RT @PolicyObsAUT: And now a report from Australia, saying high house prices are not linked to under-supply. Could policies supporting specu…
22/11/2017 8:46 AM
RT @FT: 'This really is the first time we see the news organisations coming together like this in order to address this crisis of trust in…
20/11/2017 12:20 PM
Recent Post Comments
I am sorry but this comment section has been disabled due to spam. My contact details are easy to find, please contact me if you want to comment or discuss anything on this blog.

Print-friendly
6
AUG 12

Retirement age needs to be dealt with




The retirement entitlement has come up again with 88 percent of respondents to the Herald’s Mood of the Boardroom survey saying the retirement age should be raised.

Unfortunately when the response was put to Bill English he reaffirmed that the Government would not change the age. The argument was essentially because John Key said we wouldn’t – not the best economic justification.



This chart from Treasury’s Briefing to the Incoming Minister after the last election shows how demographic changes will impact our ability to pay superannuation entitlements over the next 50 years.

I recently attended a lecture from Don Brash where he presented figures showing that our government debt is set to blow out by 2050 if current spending commitments are maintained.

His comments are worth a look:
http://www.realeconomy.co.nz/files/WHAT%20IF%20RECENT%20ECONOMIC%20TREND%20WERE%20TO%20CONTINUE.pdf

The superannuation commitments are the largest part of these rising debt levels.
There are a number of approaches to this problem:

1. Lifting the age of entitlement and indexing the age to life expectancy.
2. A higher pension is paid if the retiree works past the entitlement age, as proposed by Peter Dunne.

Restoring growth to the economy is going to require some fundamental changes in economic policy settings.

Creating sacred cows is not a way to get real change happening.
 


tags: superannuation, entitlement age, treasury, government debt
I am sorry but this comment section has been disabled due to spam. My contact details are easy to find, please contact me if you want to comment or discuss anything on this blog.