Can we afford it?

When I posted yesterday about the affordability of superannuation I pointed out that it can’t be assessed in isolation, other expenditure commitments must be taken into account too.

Kiwiblog also posted on the issue pointing out here and here that the most important factors affecting the affordability of superannuation are economic growth and demographics.

I estimate the relative importance of these factors like this:

Factors affecting affordability of superannuation

 Want to make your own diagram? You can do it at GraphJam.

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