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National promises to freeze payments to the New Zealand Super Fund

Author
Newstalk ZB,
Publish Date
Fri, 17 Jul 2020, 12:45PM
Photo / File
Photo / File

National promises to freeze payments to the New Zealand Super Fund

Author
Newstalk ZB,
Publish Date
Fri, 17 Jul 2020, 12:45PM

An economist says National's policy to cut Super Fund contributions could stem the country's rising debt.  

The party is proposing to suspend contributions for four years, saying it would reduce core crown debt by nine billion dollars.

Infometrics Senior Economist Brad Olsen told Tim Dower it could mean changes to the fund, if the party were elected.

"It could prompt a discussion around the need to move the age of eligibility up to 67.

'It will get to the point where,  in the future, it's not sustainable to cover the cost of NZ Super."

Olsen agrees the fund is essential for the future, but not now.

"It's because New Zealand has so many other competing interests for the debt we're getting into."

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