National will cut Super if age issues aren't addressed

If the rising cost of New Zealand Superannuation isn't addressed by increasing the age of entitlement, a future National Government is likely to make cuts and penalise people for saving, Labour's Finance spokesperson David Parker says.

The Financial Services Council says cutting entitlements or tax increases are the alternative to increasing the age of entitlement. Its estimates are based on research showing people are living longer after they retire. Research published in the Lancet medical journal says around half of babies born this year will live to be a hundred.

David Parker says the Council's research demands a response.

"What is the National Government going to do? Are they saying they want to increase tax by a third for future generations to support today's working New Zealanders, or are they saying they would prefer to slash the rate of superannuation? That would penalise people for saving and leave elderly New Zealanders more vulnerable.

"The alternative is to move on the age of eligibility for superannuation and introduce universal KiwiSaver. This is not only necessary for security in retirement, it helps modernise our economy and grow the export businesses we need to reduce our overseas liabilities and create jobs that pay well,” David Parker said.