Labour is attacking National for not following Australia’s lead of raising the age of superannuation eligibility.
Australia will be raising the age to 70, Labour plans to raise it to 67.
What Labour is showing is that their plans will either mean less income and/or other priorities for spending.
. . . Finance Minister Bill English said New Zealand can afford to keep the retirement age at 65, despite Australia’s plan to raise it to 70 by 2035.
He said the Australian government, which is dealing with huge deficits, is in a different position to New Zealand, which will return to surplus in the Budget this month.
Mr English said the Government settling the question of the retirement age has allowed the Government to focus on reducing other costs, such as long-term welfare dependency.
Superannuation can be affordable at the current age of eligibility providing the economy keeps growing and money isn’t wasted elsewhere.
Most people would regard superannuitants as a higher priority than younger people who could work and support themselves but don’t.
Increasing the age isn’t Labour’s only policy which will negatively affect older people, their tax increases will too.
National’s tax cuts boosted superannuation rates because they’re based on after-tax income.
Tax rates will increase under Labour, reducing after-tax income and so reducing increases to superannuation.
People will not only have to wait longer to get a pension, they’ll get less when they reach that age than they would under a National-led government.
What will Winston Peters and his followers, who Labour is trying to woo, think of that?