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English warned against NZ Super reform

Author
Daniel Walker,
Publish Date
Sun, 5 Mar 2017, 6:31AM
Prime Minister Bill English won't rule out lifting the age of eligibility above 65 (Photo / Mark Mitchell)
Prime Minister Bill English won't rule out lifting the age of eligibility above 65 (Photo / Mark Mitchell)

English warned against NZ Super reform

Author
Daniel Walker,
Publish Date
Sun, 5 Mar 2017, 6:31AM

A superannuation researcher thinks it is likely the Prime Minister will raise the age of eligibility for NZ Super.

Auckland University's Michael Littlewood believes Mr English will use last year's Retirement Commission report as backing for the decision to raise the age from 65 to 67.

Yesterday, the Prime Minister told TV3's The Nation he's looking at doing a "reset" of the superannuation system, and wouldn't rule out raising the age of eligibility from 65.

He said he's not bound in the same way as former Prime Minister John Key, who said he would rather resign than raise the age.

Mr Littlewood said there are still too many unknowns raising the eligibility age would bring into the market.

"We don't have any good information on the labour market implications of shifting the state pension age, so my concern is that we're going to be shooting blind."

He also warned against throwing around Super reform like other political promises.

"You're talking about a programme where people are making decisions about their saving plans that last decades and then the beneit once it starts lasts decades, and has all sorts of knock-on effects."

Labour Leader Andrew Little said the lack of clarity in Mr English's statements will make people anxious.

"He's got to be absolutely up-front and give certainty to every New Zealander about what is happening with superannuation," said Little.

"It's not good enough to say 'there's going to be a reset' and we have to wait weeks or months before anybody knows what that is."

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