Nats look to give Retirement Commission more power

In a reversal of its earlier position, National is endorsing the government’s pre-funded superannuation scheme and is also toning down some of its earlier warnings about the aging population.

Tuesday, November 30th 2004, 6:13AM

by Rob Hosking

As widely expected, party leader Don Brash yesterday confirmed the party will back the New Zealand Superannuation Fund.

However he went further, saying that a lot of the talk about the aging population has been “alarmist”.

The main change from Labour’s approach is that National would boost the role of the Retirement Commission to “lead a national conversation” on savings issues.

Brash has though left open the possibility of lifting the age of entitlement four those under 40 who will, he says, live longer, be healthier and be able to have a more active old age than the present generation of retirees.

His message was specifically divided up between three age cohorts.

“For those currently retired...there will be no change to your superannuation entitlement.

“For those within a decade or two of retirement, you have an absolute commitment from National, and I am sure from most other political parties, that there will be no change to your entitlement to New Zealand Superannuation for the rest of your life.”

For younger New Zealanders though the message is more mixed.

“If you ask most young New Zealanders how much they think they will get from New Zealand Superannuation when they retire, the most common answer is “nothing” or “it won’t be there when I retire”.

“That’s not right. That is not remotely right. And it is tragic that this misunderstanding is so widespread.”

And he said that for that group “even if, in 20 or 30 years’ time, there is a need for some adjustment to the scheme, there is little doubt that, because of rising incomes, the value of your superannuation will still be much more generous than it is today.”

Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.

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