Report offers solution for super

A bold new plan has set out how the country could afford to maintain the age for super at 65, and also see the retirement incomes of people now under 40, doubled.

The ideas are contained in a Financial Services Council report which has just been released.

Financial Services CEO Peter Neilson says it would be done by building on people's Kiwisaver schemes and slowing raising contributions to 10-percent of earnings.

He says it's possible for families to do this without missing too much of their income.

Mr Neilson says as incomes increase, people will be asked to put more of their additional earnings into KiwiSaver.

He says given life expectancy is increasing by an average of two years with every decade, it's important to plan ahead.

The Council says it would be best to keep the pay as you go New Zealand Super, where the age of eligibility would increase as the people live longer.

There would be no changes to super for those currently in retirement or close to it.

It also moots the idea of a scheme it dubs KiwiSaver Plus, where through slowly increased contributions from workers and employers, ten percent of all wages would be put aside.

It says for people on the median wage it would be less than a price of a cup of coffee, or a third of a Lotto ticket, a week.

Photo: NZ Herald