web analytics

Retirement age

Written By: - Date published: 7:18 am, July 23rd, 2010 - 20 comments
Categories: john key, superannuation - Tags: ,

Speaking of things that should retire, Don Brash has been in the news:

Let individuals choose when to retire

Former National leader Don Brash has waded back into the retirement debate, suggesting future governments let workers decide for themselves what age to retire.

His call coincides with a major retirement income policy seminar in Wellington this week where there are expected to be calls for compulsory superannuation to help prepare for a looming “silver tsunami”.

Dr Brash is also raising the alarm over New Zealand’s ageing population. In a speech to an Auckland business audience yesterday, he said workers should be able to decide what age to collect a pension, with the rate determined by the age at which they start.

Both National and Labour were quick to reject the proposal:

National and Labour spurn Brash’s suggestion of flexible pension

New Zealand’s two major parties have been quick to shoot down a novel proposal by former National Party leader Don Brash to raise the state pension age to 67, but with flexibility to retire earlier or later on different rates. …

But a spokesman for Finance Minister Bill English said there would be no changes to either the qualifying age or payment levels of NZ super. “This is built into the Government’s long-term spending path and fiscal forecasts.”

Labour deputy leader Annette King said Labour also supported keeping the qualifying age at 65 and saving money for it through the “Cullen fund”, with people also encouraged to save extra through KiwiSaver.

No Right Turn points out some of the problems with the proposal:

The only reason is to soften us up for an increase in the retirement age – an increase which would be unfair to Maori and unfair to the poor, who are more likely to die before retirement age. We know Brash doesn’t care about those groups – his willingness to use racially divisive politics and his advocacy for the abolition of the minimum wage shows that clearly enough – but the rest of us should. A retirement benefit that is paid only to the rich and lucky is no benefit at all.

I suspect that there are many in National who would love to raise the retirement age, but their hands are very much tied by Key’s highly publicised promise to resign if that takes place. But the ball is blatantly in National’s court here. The problem of funding future retirement is very real. Labour made a solid start in the previous government with the Cullen fund and Kiwisaver. The Nats – as ever unable to think further than the next election – have done nothing except weaken both of Labour’s initiatives. So having rejected Brash’s advice, what does National have to offer? Where is the brighter future for our retirees John?

20 comments on “Retirement age ”

  1. ghostwhowalksnz 1

    The well off will game the system, as their national super would mostly go in taxes ( the people over 65 allready pay 25-30% of the cost of the super scheme in income taxes alone).
    Thus they would forgo the money to collect more later when their tax payments would be lower.
    Brash himself would be a prime example , earning big money for a few years due to feeding at the public trough, but not likely to last .
    BTW what ever happened to his big career in high finance after he resigned as Opposition leader and left parliament- they didnt want him is the answer.
    We should say the same

  2. Irascible 2

    Any of Key’s promises are not worth the air they were spoken on. Resign if the age for superannuation was raised? Yes, but things have changed since I made the promise… eligibility is now 70 as the till is empty following our usual policy failures.

    • felix 2.1

      Resign as PM? Nah, I said “Re-Sign as PM”. I’ll sign anything you like as PM. Pretty relaxed about it too.

  3. tc 3

    Sad that after Brash was given the opportunity and proved to everyone that he’s got no relevant new ideas. only previously failed ones, he’s still trotted out by the MSM as someone who’s opinion is worth considering.

    But then this is a MSM that thinks such items as Beiber fever, apple’s new toy launch and Hosking/Hawkseby rate as news worthy.

    For balance they should randomly select people from all over and put their views up as worthy rather than persist with has-beens like Brash and obvious govt mouthpieces like Phil O’Reilly etc

  4. Gosman 4

    Instead or raising the retirement age for all perhaps the Government could timebox the pension to say 25 years. Then it would be up to the individual if they wanted to retire at 65 or not.

    The other option would be to reestablish the Super surcharge for wealthier retirerees from age 65 through to maybe 75.

  5. toad 5

    r0b, there was a conference I went to in Wellington over the last two days on this very issue, hosted by the Retirement Commissioner and Victoria University’s Institute of Policy Studies. The conference documents are here.

    The view that the funding of future retirement income is a real problem is not just that of the Treasury – even economists like Ganesh Nana and Susan St John, neither of whom espouse the sort of neo-liberal crap that comes from Brash and often from Treasury, agree there is a problem.

    Disturbingly, no MPs were there and of the political parties only the Greens bothered to send a staffer.

    I think one of the silliest things we ever did re retirement policy was abolish the surcharge that Gosman refers to at 9:49 above. Reinstating something like that (ie maintaining universal entitlement, but taxing other income of people who receive NZ Super at a higher rate) would address a large part of the problem. Brash’s “solution” won’t – it will just further redistribute from the poor to the wealthy (because the wealthy tend to live longer).

    Love your opening line BTW, r0b.

    • prism 5.1

      Have you figures to back that statement toad – that the wealthy tend to live longer. Is that in general, or just after the retirement age of 65 is reached. It is well known that the longest living people are women, and being wealthy may make a difference to that longevity. They could afford better access to medical intervention and that would affect the defining stat.

      A surgeon recently referred to 80 year olds having heart surgery and that would be affected by money. Would this be state funded I wonder or privately, through having insurance, as this would be most expensive? Perhaps there should be special health insurances set up and all those over 75 could draw on it when they wanted life-extending operations. The state would just assist mobility with joint surgery, vision with eye surgery and pain relief.

      (At present there is not enough money to treat child ailments and the continuing failure of early treatment for ear problems leading to disability resulting in a poorer grasp of education and loss of opportunities in future life.)

      • Bored 5.1.1

        There is actually plenty of money for retirement etc Prism, the issue is who holds it. Have a look at income and wealth distribution and the issue becomes clear. It is how do you prise the cash from those who have far too much and use it where it is needed? There are some well tested ways, depends how severe we need to be should those that have the cash not volunteer their assistance in redistributing their money holdings.

      • toad 5.1.2

        Try here, prism. There is debate about the mechanisms, but little debate about the correlation.

    • r0b 5.2

      Cheers toad. Depressing to hear the poor turnout for the conference.

  6. Lanthanide 6

    “have done nothing except weaken both of Labour’s initiatives.”

    Disagree.

    As of this October, you will be able to elect 2%, 4%, 6%, 8% or 10% of your income to go towards Kiwisaver, whereas Labour only allowed 4% and 8%. I think National’s numbers make a hell of a lot more sense, and make Kiwisaver a lot more feasible for many NZers. I myself am on the 2% rate, and if it weren’t for that I wouldn’t be saving at all (although my whole portfolio is down 3% thanks to the recession, but of the total money in my account I’ve only contributed about 30% of it myself).

    • r0b 6.1

      Fair call. I have heard the case that the 2% rate increases participation. Whether that balances the losses that occur from those that could (and probably should) do 4% but chose 2 instead, I don’t know of any numbers on this. Will look in to it some time.

  7. deemac 7

    I was pleased to see plenty of media comments about Brash’s own retirement being overdue!

  8. vto 8

    Mean-testing has to be an option. Paying out super to folk who don’t need it from the pockets of workers struggling to make ends meet seems brainless.

    Unfortunately voters vote generally with only themselves in mind and the grey block of voters is a hefty one to try and placate. I know I have never been able to have a rational debate over super with a superannuitant. “I’ve paid taxes all my life” blah blah, they say. Yes, I say, but what did your govts do with your taxes? Why did you vote in Muldoon? Why didn’t your generation do something about this problem before? etc and on it goes.

    Maybe Gareth Morgan has got it right and we just give every single person a basic living allowance …

    • felix 8.1

      There is a certain simple poetry to that idea, ain’t there?

    • prism 8.2

      vto the blah blah ‘all my life’ is what I have heard from olders too. Listening to that reinforces to me the need for active financial regulation. People with such poor understanding of money and distribution need protection from razor sharp minds.

      The study on health deterioration quoting Whitehall and going down the seniority ladder is good toad. Still reading it. Don’t know if it mentions status, the public school toff and same school fag would react differently to each stimulus. Also the stress on a middle or under-manager is apparently much higher than that on the head supervising. The other is a ‘gofer’ interacting above and below and responsible for the outcomes to the boss. That would be mostly men but both genders would have the same reaction I think. Would people in unsatisfying jobs at older ages die earlier than otherwise? It’s grim if you have to work in a hated job for a hated boss at survival wages and anti-social hours with no extra available for fun or pleasure, because of a late retirement age. (Women have less stress at some ages and social status and can manage better on small incomes, helping their longevity.)

  9. burt 9

    The age of retirement should be indexed to the oldest still working member of parliament. Perhaps averaged over a 5 year period to mitigate sudden and unavoidable peaks and troughs.

Links to post

Recent Comments

Recent Posts

  • Joint media release on the occasion of the meeting between European Commission President von der Ley...
    European Commission President von der Leyen and Prime Minister of New Zealand Ardern met in Brussels on 30 June 2022. The encounter provided an opportunity to reaffirm that the European Union and Aotearoa New Zealand are longstanding partners with shared democratic values and interests, aligned positions on key international and ...
    BeehiveBy beehive.govt.nz
    9 hours ago
  • New Zealand secures major free trade deal with European Union
    Export revenue to the EU to grow by up to $1.8 billion annually on full implementation. Duty-free access on 97% of New Zealand’s current exports to the EU; with over 91% being removed the day the FTA comes into force. NZ exporters set to save approx. $110 million per annum ...
    BeehiveBy beehive.govt.nz
    10 hours ago
  • Biggest Year for Clean Cars on Record
    57,000 EVs and Hybrid registered in first year of clean car scheme, 56% increase on previous year EVs and Non Plug-in Hybrids made up 20% of new passenger car sales in March/April 2022 The Government’s Clean Car Discount Scheme has been a success, with more than 57,000 light-electric and ...
    BeehiveBy beehive.govt.nz
    20 hours ago
  • Police Wing 355 includes the highest ever proportion of Wāhine Māori
    Police Minister Chris Hipkins congratulates the newest Police wing – wing 355 – which graduated today in Porirua. “These 70 new constables heading for the frontline bring the total number of new officers since Labour took office to 3,303 and is the latest mark of our commitment to the Police ...
    BeehiveBy beehive.govt.nz
    20 hours ago
  • New RBNZ board takes up role from 1 July
    Members with a range of governance, financial and technical skills have been appointed to the Reserve Bank Board as part of the shift to strengthen the Bank’s decision-making and accountability arrangements. The Reserve Bank of New Zealand Act 2021 comes into force on 1 July 2022, with the establishment of ...
    BeehiveBy beehive.govt.nz
    21 hours ago
  • New measures to help manage COVID-19 as country stays at Orange
    New Zealand to remain at Orange as case numbers start to creep up 50 child-size masks made available to every year 4-7 student in New Zealand 20,000-30,000 masks provided a week to all other students and school staff Extra funding to schools and early childhood services to supports better ...
    BeehiveBy beehive.govt.nz
    22 hours ago
  • NZ to join International Court of Justice case against Russia
    Aotearoa New Zealand will join Ukraine’s case against Russia at the International Court of Justice (ICJ), which challenges Russia’s spurious attempt to justify its invasion under international law. Ukraine filed a case at the ICJ in February arguing Russia has falsely claimed genocide had occurred in Luhansk and Donetsk regions, as ...
    BeehiveBy beehive.govt.nz
    23 hours ago
  • New advisory group provides enduring Māori expertise for Te Aorerekura delivery
    The Government has taken another step forward in its work to eliminate family violence and sexual violence with the announcement today of a new Tangata Whenua Ministerial Advisory Group. A team of 11 experts in whānau Māori wellbeing will provide the Government independent advice on shaping family violence and sexual ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Making work better for Kiwi women
    Te Mahere Whai Mahi Wāhine: Women’s Employment Action Plan was launched today by Minister for Women Jan Tinetti – with the goal of ensuring New Zealand is a great place for women to work. “This Government is committed to improving women’s working lives. The current reality is that women have ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Good Employer Awards celebrate food and fibre sector
    The food and fibre sector acknowledged its people and leadership at last night’s 2022 Primary Industries Good Employer Awards, a time to celebrate their passion towards supporting employees by putting their health, welfare and wellbeing first,” Acting Minister of Agriculture Meka Whairiti said. “Award winners were selected from an extraordinary ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • PM's comments to NATO session
    Kia ora koutou katoa.  It is a rare thing to have New Zealand represented at a NATO Summit. While we have worked together in theatres such as Afghanistan, and have been partners for just on a decade, today represents an important moment for our Pacific nation.   New Zealand is ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Veterans Minister announces new focus on mental health for veterans and their whānau
    Te Arataki mō te Hauora Ngākau mō ngā Mōrehu a Tū me ō rātou Whānau, The Veteran, Family and Whānau Mental Health and Wellbeing Policy Framework “We ask a lot of those who serve in the military – and we ask a lot of the families and whānau who support ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Minister to advocate for Small Island States
    Associate Minister of Foreign Affairs Aupito William Sio has been appointed by the United Nations and Commonwealth as Aotearoa New Zealand’s advocacy champion for Small Island States.  “Aotearoa New Zealand as a Pacific country is particularly focused on the interests of Pacific Small Island Developing States in our region.  “This is a ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Increased support for households to pay local council rates
    An estimated 100,000 low income households will be eligible for increased support to pay their council rates, with changes to the rates rebate scheme taking effect from 1 July. Local Government Minister Nanaia Mahuta has announced increases to both the maximum value of the rates rebate, and the income threshold ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • He Oranga Poutama expanded into four new regions
    A long-standing physical activity programme that focuses on outcomes for Maori has been expanded to four new regions with Government investment almost doubled to increase its reach. He Oranga Poutama is managed by a combination of hapū, iwi, hauora and regional providers.   An increase in funding from $1.8 million ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Wellington’s rapid transit option progresses to next stage
    The Government is progressing a preferred option for LGWM which will see Wellington’s transport links strengthened with light rail from Wellington Station to Island Bay, a new tunnel through Mt Victoria for public transport, and walking and cycling, and upgrades to improve traffic flow at the Basin Reserve. “Where previous ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Keynote remarks: Tech 4 Democracy Summit, Madrid
    To Provost Muniz, to the Organisers at the Instituto de Empresa  buenas tardes and as we would say in New Zealand, kia ora kotou katoa.  To colleagues from the State Department, from Academia, and Civil Society Groups, to all our distinguished guests - kia ora tatou katoa. It’s a pleasure ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • On June 28, 2022, a meeting took place in Madrid between the President of the Government of the Kingdom of Spain, Pedro Sánchez Pérez-Castejón, and the Prime Minister of New Zealand, Jacinda Ardern, who was visiting Spain to participate in the Summit of the North Atlantic Treaty Organization as one ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • More young Kiwis able to travel and work in Spain
    A six-fold increase in the Aotearoa New Zealand-Spain working holiday scheme gives a huge boost to the number of young people who can live and work in each other’s countries, Prime Minister Jacinda Ardern says. Jacinda Ardern and Spanish President Pedro Sánchez Pérez-Castejón made the Working Holiday/Youth Mobility Scheme announcement ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Supporting local government candidates
    A significant barrier has been removed for people who want to stand in local government elections, with a change to the requirement to publish personal details in election advertising. The Associate Local Government Minister Kieran McAnulty has taken the Local Electoral (Advertising) Amendment Bill through its final stages in Parliament ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Govt passes law to protect consumers in banking and insurance sector
    New financial conduct scheme will ensure customers are treated fairly Banks, insurers and non-bank deposit takers to be licensed by the FMA in relation to their general conduct Sales incentives based on volume or value targets like bonuses for selling a certain number of financial products banned The Government ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • New law paves way for greater supermarket competition
    Legislation that bans major supermarkets from blocking their competitors’ access to land to set up new stores paves the way for greater competition in the sector, Minister of Commerce and Consumer Affairs Dr David Clark said. The new law is the first in a suite of measures the Government is ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Vaccine mandate for border and corrections workers to end
    The Government has announced an end to the requirement for border workers and corrections staff to be fully vaccinated. This will come into place from 2 July 2022. 100 per cent of corrections staff in prisons, and as of 23 June 2022 97 per cent of active border workers were ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • New Zealand's Commonwealth relationships strengthened at CHOGM
    Foreign Affairs Minister Nanaia Mahuta has concluded a visit to Rwanda reaffirming Aotearoa New Zealand’s engagement in the Commonwealth and meeting with key counterparts. “I would like to thank President Kagame and the people of Rwanda for their manaakitanga and expert hosting of this important meeting,” Nanaia Mahuta said. “CHOGM ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Emergency monitoring centre opened to keep New Zealand safer
    Minister for Emergency Management Kieran McAnulty officially launched the new Monitoring, Alerting and Reporting (MAR) Centre at the National Emergency Management Agency (NEMA) today. The Government has stood up the centre in response to recommendations from the 2018 Ministerial Review following the 2016 Kaikoura earthquake and 2017 Port Hills fire, ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Waikato Expressway speed limit to change to 110km/h
    Transport Minister Michael Wood has welcomed the announcement that a 110km/hr speed limit has been set for the SH1 Waikato Expressway, between Hampton Downs and Tamahere. “The Waikato Expressway is a key transport route for the Waikato region, connecting Auckland to the agricultural and business centres of the central North ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government listening to sector on NCEA
    Following feedback from the sector, Associate Minister of Education Jan Tinetti, today confirmed that new literacy and numeracy | te reo matatini me te pāngarau standards will be aligned with wider NCEA changes. “The education sector has asked for more time to put the literacy and numeracy | te reo ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Further Aotearoa New Zealand support for Ukraine
    $4.5 million to provide Ukraine with additional non-lethal equipment and supplies such as medical kit for the Ukrainian Army Deployments extended for New Zealand Defence Force (NZDF) intelligence, logistics and liaison officers in the UK, Germany, and Belgium Secondment of a senior New Zealand military officer to support International ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Electoral changes will bring greater transparency for voters
    Changes to electoral law announced by Justice Minister Kiri Allan today aim to support participation in parliamentary elections, and improve public trust and confidence in New Zealand’s electoral system. The changes are targeted at increasing transparency around political donations and loans and include requiring the disclosure of: donor identities for ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government invests to minimise gambling harm
    The Labour government has announced a significant investment to prevent and minimise harm caused by gambling. “Gambling harm is a serious public health issue and can have a devastating effect on the wellbeing of individuals, whānau and communities. One in five New Zealanders will experience gambling harm in their lives, ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • More free flu vaccines and a second COVID-19 booster to groups at risk of hospitalisation
    The Government has widened access to free flu vaccines with an extra 800,000 New Zealanders eligible from this Friday, July 1  Children aged 3-12 years and people with serious mental health or addiction needs now eligible for free flu dose. From tomorrow (Tuesday), second COVID-19 booster available six months ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government backs action to drive strong wool growth
    The Government is investing to create new product categories and new international markets for our strong wool and is calling on Kiwi businesses and consumers to get behind the environmentally friendly fibre, Agriculture Minister Damien O’Connor said today. Wool Impact is a collaboration between the Government and sheep sector partners ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Veterans Minister pays tribute to service and sacrifice at Korean War commemoration
    At today’s commemoration of the start of the Korean War, Veterans Minister Meka Whaitiri has paid tribute to the service and sacrifice of our New Zealand veterans, their families and both nations. “It’s an honour to be with our Korean War veterans at Pukeahu National War Memorial Park to commemorate ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Matariki projects star in latest round of Tourism Infrastructure Fund
    Minister of Tourism Stuart Nash and Associate Minister of Tourism Peeni Henare announced the sixth round of recipients of the Government’s Tourism Infrastructure Fund (TIF), which supports local government to address tourism infrastructure needs. This TIF round will invest $15 million into projects around the country. For the first time, ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Prime Minister’s Matariki speech 2022
    Matariki tohu mate, rātou ki a rātou Matariki tohu ora, tātou ki a tātou Tīhei Matariki Matariki – remembering those who have passed Matariki – celebrating the present and future Salutations to Matariki   I want to begin by thanking everyone who is here today, and in particular the Matariki ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • First Matariki holiday marked across New Zealand and the world
    Oho mai ana te motu i te rangi nei ki te hararei tūmatanui motuhake tuatahi o Aotearoa, Te Rā Aro ki a Matariki, me te hono atu a te Pirīmia a Jacinda Ardern ki ngā mahi whakanui a te motu i tētahi huihuinga mō te Hautapu i te ata nei.    ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Minister to attend second United Nations Ocean Conference in Portugal
    Oceans and Fisheries Minister David Parker will represent Aotearoa New Zealand at the second United Nations (UN) Ocean Conference in Lisbon, Portugal, which runs from 27 June to 1 July. The Conference will take stock of progress and aims to galvanise further action towards Sustainable Development Goal (SDG) 14, to "conserve and sustainably use ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government supports innovative dairy sheep sector to scale up
    The Government is boosting its partnership with New Zealand’s dairy sheep sector to help it lift its value and volume, and become an established primary industry, Agriculture Minister Damien O’Connor has announced. “Globally, the premium alternative dairy category is growing by about 20 percent a year. With New Zealand food ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government supports Buller flood recovery and longer term resilience
    The Government is continuing to support the Buller district to recover from severe flooding over the past year, Minister for Emergency Management Kieran McAnulty announced today during a visit with the local leadership. An extra $10 million has been announced to fund an infrastructure recovery programme, bringing the total ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government outlines plans for future COVID-19 variants
    “The Government has undertaken preparatory work to combat new and more dangerous variants of COVID-19,” COVID-19 Response Minister Dr Ayesha Verrall set out today. “This is about being ready to adapt our response, especially knowing that new variants will likely continue to appear. “We have undertaken a piece of work ...
    BeehiveBy beehive.govt.nz
    1 week ago