Super age to rise

PM Bill English says the pension age will rise to 67 over the next 20 years.

Monday, March 6th 2017, 4:01PM

His predecessor, John Key, had said he would resign before there was any change to the age of eligibility.

But English has made no such promise.

Retirement Commissioner Diane Maxwell said the age needed to rise to 67. She had called for it to be phased in by 2034, as part of her three-yearly review of retirement policy.

At the weekend, English said there was room for a "reset" of the superannuation scheme

“New Zealanders are healthier and living longer so adjusting the long-term settings of NZ Super while there is time for people to adapt is the right thing to do,” English said..

The changes will be phased in from July 1, 2037, and will not affect anyone born on or before 30 June 1972.

He said, even after the change, someone who retires at age 67 in 2040 was likely to receive NZ Super for longer than someone who retires at age 65 today. That is because average life expectancy is increasing by about 1.3 years each decade.

The change will be legislated for next year.

“This Government has a strong track record of supporting older New Zealanders. Since 2008 weekly payments to superannuitants have increased by 35 per cent after tax while inflation has increased by 14 per cent," English said.

“Gradually increasing the retirement age from 2037 will more fairly spread the costs and benefits of NZ Super between generations, ensure the scheme remains affordable into the future and give people time to adjust.

“It will also bring New Zealand into line with other countries like Australia, the United Kingdom, Denmark, Germany and the United States which are all moving to a retirement age of 67.”

There will be no change to the universality or indexation of NZ Super.

English said the Government was announcing the change now so that political parties could debate superannuation transparently in the lead-up to the election.

Tags: NZ Super