Keep pension at 65, young ones might need it
In a review of NZ superannuation (NZS) the group (RIIG) refutes arguments that the country can’t afford to keep the retirement age at 65 and says means-testing would be too complicated. Instead it hangs its hat on KiwiSaver but not under the current policy settings and public saving behaviour.
Looking at the latest longevity data and other research, RIIG says trends which argue against diminishing the role or restricting the value of NZS should be recognised. It says debate usually focuses on the ‘cost’ of NZS, which is often portrayed wrongly as being in crisis.
“Expenditure is a policy choice. Looking at KiwiSaver policy is more relevant than reforming NZS now.
“KiwiSaver balances are not going to be high enough to allow any painless reduction in NZS. And inequalities in length of life are significant and visible to the extent that they should be addressed before planning to make them worse.”
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