The meme of “we cannot afford super, welfare seems to be very powerful. So powerful, that even those who know better have been taken in.
We, apparently, cannot afford to pay a little more tax now to build capability for the future so we can sustain a “pay as you go” super, and, feed, house and look after everyone, no matter their age, BUT we can, apparently, afford to gift a large proportion of our national wealth to the finance industry, to gamble with, and extract profits from.
What is the Government going to tell Kiwi saver investors, when it all disappears in the next GFC?
Unless we build capability within New Zealand, all we are going to have is a large number of pensioners trying to buy services with maturing retirement funds, that the country is no longer capable of providing, after years of neo-liberal hollowing out.
The USA has already shown what the finance industry can do to pension funds.
Look at all the State servants schemes, and 401 k’s over there, that have found there is no money in the till, after people have put large proportions of their income in for most of their life.
We have a viable, cheap, easy to administer and successful super scheme. Paid as we go through taxation.
A scheme that has been so successful in eliminating poverty amongst New Zealand’s elderly, at a reasonable cost, it should be extended to all ages.