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Rachel Smalley: Retirement age should go up. It has to

Author
Rachel Smalley,
Publish Date
Mon, 6 Mar 2017, 7:03AM
(Stockxchng).
(Stockxchng).

Rachel Smalley: Retirement age should go up. It has to

Author
Rachel Smalley,
Publish Date
Mon, 6 Mar 2017, 7:03AM

Finally it seems we're going to have that conversation about the retirement age.

John Key said the age would never go up on his watch, and that's something Bill English has always had to tip-toe around.

I've interviewed him on a number of occasions over the last two terms, and it wasn't an issue he was comfortable talking about. He would suggest we'd have to look at it at some stage, it's just that now wasn't the right time. "Now" meaning while John Key was in power.

But now English says he could push the 'reset' button. That age might go up.

And it should. It has to.

We're living longer. We've got an aging population. Birth rates have dropped.

If you keep the retirement age at 65, you're going to saddle taxpayers -- not to mention your children and your grandchildren -- with a huge bill. Keeping the retirement age at 65 just does not make sense. It's unaffordable.

It should be lifted to 67....But phased in over the 15 years or so.

And we need to understand that lifting the age won't work for everyone.

If you're a farmer, if you've worked a labour-intensive job all you're life, then working until your late 60s will be a challenge.

So it's not 'one size fits all' but the age does need to move.

Then, off the back of National's comments -- enter Labour. Stage left.

Labour use to lobby to raise the age.

Labour thought John Key's approach was wrong.

And then something happened.

I suspect after losing the last three elections, they did some polling -- and raising the retirement age proved unpopular.

I interviewed Grant Robertson in November -- and he said as much. I asked him why Labour had moved on this, and was no longer advocating for a lift in the retirement age.

And he said “a lot of people say to me ‘we need politicians who will be brave on this’. Well we were brave on this for two elections in a row on this issue and it didn’t work for us. Now we’re taking a step back and say let’s look at this longterm.”

There it is. It's not popular.

And Andrew Little is re-iterating that party line.

He says too many New Zealander struggle to work to the age of 65 already, and English's comments will create unnecessary worry.

And then little said this - "A Labour government I lead will not raise the entitlement age."

A complete turn around. That's a mistake, I think.

And this is where politics becomes so frustrating.

Yes, parties do what they can to get in government, but at the same time you have to be authentic. You have to be real.

Labour knows the retirement age has to increase. Talk to any economist, they'll tell you.

This is something we have to phase in.

But it wouldn't happen under john key and now it won't happen under a Labour government.

And that's a big mistake, I think.

It's populist policy... And who wins from that? Long term, we'll all lose.

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