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Why raising the retirement age could be a Covid-19 economic solution

Author
Newstalk ZB,
Publish Date
Wed, 13 May 2020, 5:34PM
(Photo / 123RF)
(Photo / 123RF)

Why raising the retirement age could be a Covid-19 economic solution

Author
Newstalk ZB,
Publish Date
Wed, 13 May 2020, 5:34PM

A leading economist says even at alert level one - the economic fallout for our country could surpass the Global Financial Crisis.

Cameron Bagrie says there's a potential $3 billion hit every month if 4 to 5 percent of the economy remains shut down.

He says tomorrow's Budget will be critical in detailing a plan and hope for the future.

"Don't just think big. Think small if you stand tall. The other thing I'm going to be looking for in the budget is some signs that we're prepared to make the hard decisions.

Bagrie thinks that we will need to increase the retirement age to deal with the cost.

He told Heather du Plessis-Allan that some solutions, such as asset sales and reducing spending won't work.

"The obvious one here is superannuation. The retirement age needs to go up."

He would take it up to 67 at first, and then link it to life expectancy going forwards.

 

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