Borrowing to save senseless

If your income dropped would you borrow to save for your retirement?

Not if you’ve got any sense.

Of course Phil Goff is going to take the opportunity to grab a headline by making a fuss about the government considering changes to the state super fund.

And John Armstrong is right about the importance of maintaining political concensus on the issue.

But the super fund was at best never going to cover more than a small proportion of projected super payments, so if it costs more to borrow than the fund returns then suspending payments in the short term would be sensible.

UPDATE: Kiwiblog thinks politics might get in the way of doing the sensible thing.

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