Labour plans to establish a publicly funded superannuation scheme

Adequate income

Labour will reverse National's superannuation cuts.

Poverty researchers believe that National's cuts could lead to one third to one half of superannuitants falling below the poverty line.

We will restore the floor of the married rate of New Zealand Superannuation to its previous level of 65 per cent of the net average ordinary time wage. The single rate will be adjusted upwards in line with that.

Funding Super in the future

Labour will set aside a portion of existing income taxes into a Superannuation Fund. The amount set aside will be enough to fund existing commitments and to build up a surplus to meet increased future commitments. This will put funding of NZ Super on a long-term sustainable basis. It will also boost total national savings.

ü Guarantees you an adequate income in retirement

ü Ensures by law that part of the tax you already pay is put into a New Zealand Superannuation Fund

ü Ensures by law that the fund would be managed independently of government and run on a sound commercial basis

ü Ensures by law that the money in that fund can only be used for superannuation payments               

ü Builds up a surplus in that fund from now on to cover payments in the future when the numbers of retired people increase

ü Invites senior citizens’ groups to nominate people for the independent board that will oversee the fund.

No income or asset
tests

Labour supported the abolition of the surcharge and will ensure it is not imposed in a different form. Labour will not take part in any multi-party agreement to introduce an income or assets test.