Standard retirement age discussion

A thoughtful and thought provoking post by mickysavage (Greg Presland) at The Standard on The retirement age debate:

Labour’s policy is to gradually change the age of retirement to 67 with an allowance made for those aged 65 who can no longer work. There are passionate views in support of this and opposing this.

Regrettably the financial analysis is quite clear. The current entitlement to superannuation will drain more and more of the state’s resources and Aotearoa will face a financial crisis in 10 years or so due to the baby boomer bubble approaching retirement.

Labour is trying to show that it is being fiscally responsible by highlighting this as an issue and proposing a realistic solution.

But it is a difficult line. There is policy that a 65 year old whose body is wrecked through work should be allowed to retire now. But allowing everyone to retire gracefully at the age of 65 years means that there will be jobs for 18 year olds to fill. Allowing older citizens to retire later means that there will be less jobs for our young

The debate really needs to be about how we share the resources of our society around. We need to make sure that those of us who are older can exit from the workforce with dignity and those of us who are younger can have jobs.

A commenter points out that Labour’s policy on Super has similarities to ACT’s.

Greg has close connections to David Cunliffe but says he blog comments on a personal basis – but here he seems to be trying to help the Super debate within Labour:

I thought that we should capture the thoughts in one post and let Labour (and the Greens and anyone else) to absorb the thoughts of commentators.

All parties and politicians should absorb whatever they can to try and work out an affordable way of dealing with Super. This must be done on an all party long term basis.

I’ll summarise comments in another post in a day or two.

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1 Comment

  1. Pongo

     /  2nd March 2014

    Our super scheme is very affordable at 65, its cost peaks at 8% of GDP which is less than what Australia’s will cost and lower than what most European countries are at now !
    Parker has been told in no uncertain terms by Helen Kelly that raising the age ain’t going to happen at the annual conference in Christchurch.Cunliffe will yeah nah the subject as usual. I really like peter Dunnes idea, it’s a very elegant solution.
    I think the super debate needs to be framed as a fairness question rather than an affordability issue which is easier to dodge, put the tax rate for anyone over the age of 65 to 45% on all wages (no thresholds, from the first dollar earned) if they choose to work and collect super

    Reply

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