Labour’s Super policy

Labour have announced their superannuation policy. It includes pledges to keep the entitlement age at 65, and resuming payments to the Super fund.


Labour secures the future for NZ Super

A Labour Government will secure the future for New Zealand Superannuation so we can continue to provide superannuation to those retiring at age 65, says Leader of the Opposition Andrew Little.

“One of the first things a Labour-led Government will do is resume payments to the NZ Superannuation Fund, so we can secure its future. National’s failure to invest in the Fund puts the retirement plans of New Zealanders at risk.

“Despite finally running surpluses after years of trying, the Government says it won’t resume Super contributions until 2021/22 financial year, while promising tax cuts that will hand $400 million to the top 10 per cent of income earners.

“The value of the contributions not made by National during its period in office is nearly $14 billion. Currently the Fund is worth $33 billion. The NZ Super Fund estimates that, had contributions continued to be made, it would now be worth $52.6 billion.

“National has sold the future of New Zealand short by billions and billions. By the time National plans to finally resume contributions, a Labour Government will have doubled the size of the current fund to $63 billion.

“This will equate to $6,500 per person extra in the Fund by 2021/22 under Labour. More importantly, we can continue to afford to leave the retirement age at 65; unlike National which wants to lift the age to 67.

“The argument to lift the age from 65 just doesn’t stack up. I’ve spent 20 years working with people who struggle to get to 65 now before they retire because of the physical nature of their work; that hasn’t changed.

“I’m absolutely clear that there will be no change. A Labour Government I lead will keep the age of entitlement at 65 and we will re-start contributions to the New Zealand Superannuation Fund immediately.

“This election will provide a clear choice – only a Labour Government’s fresh approach will make the investments we need to secure the future for all New Zealanders,” says Andrew Little.


More from Grant Robertson via RNZ: Labour pledges to boost Superannuation Fund

Labour finance spokesperson Grant Robertson said if payments had continued over the past eight years, at nearly $53b, instead of its current worth of $33b.

“We cannot afford if we want to keep paying Super out to people in a sustainable way, to not be contributing to the Super Fund.

“We can’t lump on to future generations the full cost of Super, we need to spread it out.”

Mr Robertson said National made the right decision to suspend contributions as New Zealand recovered from the Global Financial Crisis, but the government should have restarted the payments by now.

“Back then National said when once they got into surplus they would restart contributions. They then changed their position to be tagged to an arbitrary debt-ratio. We don’t believe that’s correct.

“We can see from the past performance of the fund that New Zealanders would be significantly better off had we been making contributions.”

But the country would have clocked up substantially more debt, or would have clamped down on spending much more.

4 Comments

  1. David

     /  July 19, 2017

    Borrowing to invest in the same markets you borrow from is fine if you are an investment bank but while it can pay off think about all those scary moments since 2008 when its looked like GFC 2…thankfully it wasnt.
    A government with pensions, health, education liabilities to budget for being a conservative player in the markets is prudent, even when the country was run by one of the smartest money guys on the planet.

  2. David

     /  July 19, 2017

    And someone needs to ask Little of the 10% of top taxpayers who get to keep 400 mill of their own money how many will keep working to 67 anyway and pick up 2 years of Super courtesy of Labour.

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