For those looking for the details around today’s announcements on savings, here is the link. Also here is a link to Phil Goff’s interview on Close Up tonight, worth a watch too.
Some important elements to note
- Labour is 100% committed to government superannuation being there for New Zealanders for generations to come. That’s why we are re-starting contributions to the Super Fund which National stopped. These policies are about securing New Zealanders in their retirement now and in the future. We are also guaranteeing that the rate of Super will be set at 66% of the average wage.
- Making Kiwisaver universal gives more security for people in their retirement, and allows us to accumulate a bigger pool of national savings that can be invested in businesses, jobs and growing the economy.
- Increasing the age of eligbility incrementally over 12 years from 2020 means that it will be 2033 when the the age is 67. This gives New Zealanders time to prepare for the change and ensures that we can manage our over 65 year old population as it doubles by 2050. Labour is introducing a transition payment for people who can not keep working in their normal job between 65 and 67. (eg manual labour).
Bill English has said that this is a “legitimate debate.” There are definitely different views on this issue. Let’s have the debate. Sadly John Key would not debate Phil Goff tonight. He said last night you can’t hide away when you are Prime Minister. Time to live up those words, and address the issue of how we manage our ageing population that everyone knows we have to deal with.
1. The only way to ensure bi-partisan committment to the continuance of universal rate super at current levels (that has been proven to prevent poverty amongst the retired – well until the falling rates of home ownership test this) is to establish dedicated funding for the contribution to the Cullen Fund.
2. Increased Kiwi Saver savings has positive national economic benefits and also provides an extra level of support in retirement – but if the security of tax paid super is not secured first, there is then a growing rsik of transition and replacement of the former. That will place many into a means tested benefit position at lower rates than provided now (returning us to benefit level type poverty for those who worked on lower wages or were on benefits and lived this long anyway).
3. How does one define not able to work their normal job – why not simply work test super rate benefits between the age of 65 and 67?
It’s not obvious from the current docs: Currently as an employer my employer contribution is tax-free provided it’s at the minimum amount.
If I give an employee $1000 through kiwisaver they get the full $1000 while if I pay it to them as a wage they are taxed at their marginal rate.
(speaking as my sole employee I have to say that my boss is an ass, and also that there’s no point in me point at the moment of upping my employer KS contribution past the minimum amount [after which it is taxed])
So is the plan here to tax the new increased employer contribution up to 7% or will the minimum employer contribution still be tax-free?
(in which case Farrar’s analysis is all just hot air)
This ISSUE has to be bi-partisan it is too imnportant to be left to a governing party alone. These are the kind of things which need detailed and open discussion, investigation and dissemination of information and education relating tot hat.
THEN have a referendum if required. Long run -in, non election information gathering/dissemination and then a referendum. Or no referendum if all parties can agree. This is the testament to those who say they entered parliament to make a difference not for personal/ego gains. Put your country first MP’s. Given the Super options available to MP’s I am not certain they are best qualified, but then again with no vested interest perhaps that makes them MOST qualified int his debate?
21 years to raise the pension entitlement by 2 years?
By then, we’ll be bankrupt.
C’mon Labour- show some leadership on this issue.
There has to be something better than this, surely.
It’s a start Gregor W
You’re right Tracey.
It is a start and the NZLP has to be given credit for at least getting the issue out there.
Immigration floodgates permanently open. Vicious antinatalist policies. Old age pension to be phased out.
It looks as is if we have a situation like that described by John Stuart Mill (Book II Chapter V Principles of Political Economy ….)
“If full-grown, able-bodied slaves can be procured in sufficient numbers, and imported at a moderate expense, self-interest will recommend working the slaves to death, and replacing them by importation, in preference to the slow and expensive process of breeding them. Nor are the slave-owners generally backward in learning this lesson. It is notorious that such was the practice in our slave colonies, while the slave trade was legal; and it is said to be so still in Cuba.”
Raising the retirement age. For the first time in my life I’m seriously thinking about voting National.
@ Tracy: Bipartisanship is a good idea in theory but in practice it falls flat. Right wingers are sociopaths and don’t care about other people rights.
They have their turn in power and do what they want. Now we have to take power and do what is right. Asking a monkey to think like a human is an exercise in futility.
Anne says:
October 29, 2011 at 10:03 am
Raising the retirement age. For the first time in my life I’m seriously thinking about voting National.
Suspect this might be a prank/hoax. Not the regular Anne – me. If it happens again would moderators please investigate- Thanks.
@Anne – That bleeps me off, identity theft!
!
Some creep pretended to be me a few months back and got done for insulting someone!
! It wasn’t me! 
!
If they want to say stuff they can at least come up with names of their own to do it !
!
Can’t be sure it’s the case here Spud, but it’s a way of undermining a regular commenter. I don’t keep a constant check on comments so, who knows, it may have happened to me before. I have long believed that as we get closer to the election… so the National Party “dirty tricks brigade” would crank up their grubby activity. We’ve already seen something along these lines in the apparent hoax call to Youtube pretending to be a IRB official re- the three way Key handshake.
@Spud Anne
Add a photo to your profile, Spud Im sure you could find an original looking potato to capture digitally.
Thanks richie. If it happens again will do that only someone is gonna have to show me how… bit of a PC dummy.
@richie – I was originally going to use a happy emoticon!