Retirement report piles more pressure on PM

The prime minister is playing politics on an issue that calls for leadership as we face a looming crisis of the future affordability of superannuation, says Labour leader David Shearer.

“The Prime Minister has been lashing out at other politicians for their views but if he won’t deal with the age of entitlement then he has to be clear what he will do instead to address the burgeoning bill for superannuation. Will he cut Super, increase taxes or borrow more every year for generations.

“It is disappointing that he has rejected an offer by Labour not to play politics and to work constructively with other political parties.

“The release of a new report calling for urgent changes to ensure that young New Zealanders can still look forward to a decent pension is a wake-up call for the Prime Minister.

“John Key can’t keep putting off the hard decisions for some other Government to deal with. That’s a cop-out. All New Zealanders have a right to look forward to a decent retirement. And that means we must make tough calls now so that we can afford it.

“Any changes to superannuation need to be fair and Kiwis need time to plan. You can’t just drop it on them.

“John Key and his colleagues should take a hard look at the Pensions for the Twenty First Century report, led by former National Party leader and Prime Minister Jenny Shipley.

“It found that the current form of Super can’t be maintained without significant increases in taxes or a rise in the age of eligibility. The issue is described as one of the most ‘critical conversations of our time’.

“The report also recommends increasing savings through what it calls KiwiSaver Plus. Labour’s policy is to make KiwiSaver compulsory and to gradually increase contributions to boost the funds available to New Zealanders in retirement.

“Labour’s plan is to give everyone a secure retirement by making workplace saving universal, guaranteeing NZ Super and setting aside money for our aging population.

“John Key says he’s too busy governing for today to worry about the future. Well that’s not good enough. It’s not fair to our future generations.

“Younger Kiwis deserve the same rights and opportunities as those who are retired now. We can’t afford to let things slide into a situation where Australians can look forward to a retirement income that is more than twice what we get here. That will just drive more of our young talented workers across the Tasman.

“John Key cannot continue to be a ‘man alone’ on this issue. We need a national discussion about the future affordability of Superannuation and a solution that is enduring,” said David Shearer.