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The Government’s refusal to face up to the consequences of an ageing population is leaving tens-of-thousands of New Zealanders uncertain and fearful about retirement, says David Parker.
Research out today shows that 47 per cent of retirees do not feel they have adequate financial resources. A third said they were not satisfied with their retirement and almost half reported that retirement was not meeting their expectations.
“That’s a sad reflection on the life of older New Zealanders. People need financial security in retirement, but John Key and Bill English are content to just sit back and leave tough decisions to future Governments.
“John Key is in denial when he pretends the current retirement age is affordable in the long term. It’s not, and everyone knows it.
“Superannuation must be put on a sustainable footing. Gradually raising the retirement age to 67 might not be instantly popular, but as long as there are protections for the likes of manual workers who can’t work passed 65 in their normal job, it is the responsible thing to do.
“Making KiwiSaver compulsory would make a big difference to the futures of hundreds-of-thousands of workers by making it easier for them to save for a secure retirement.
“KiwiSaver is already creating a savings culture in New Zealand, but it should be taken to the next level by being made universal. Not only would that create a wealthier, more secure retirement for Kiwis, it would also create a pool of savings that could be invested in the economy.
“Retirement and savings policy is too important to ignore for short term political reasons. Kiwis deserve a government that will be honest with them about the future of superannuation,” says David Parker.