Economist says we should consider scrapping universal superannuation

Author
Newstalk ZB,
Publish Date
Thu, 27 Feb 2020, 6:45PM
Shamubeel Eaqub. (Photo / Supplied)

Economist says we should consider scrapping universal superannuation

Author
Newstalk ZB,
Publish Date
Thu, 27 Feb 2020, 6:45PM

An economist says we should look at scrapping our universal superannuation.

It has been revealed that over 30,000 New Zealanders receive the pension despite earning more than $100,000 a year.

The figures don't include incomes through Kiwisaver, or other investment portfolios.

The median New Zealand wage is currently $53,000, and the cost of paying the 31,000 people is over half a billion dollars a year. 

Economist Shamubeel Eaqub told Heather du Plessis-Allan that there are some elderly people who are struggling - and could do with more help.

"That $600 million that we're spend on people who really don't need it, those older folk who are now currently poor would be a lot better off."

He thinks the scheme should be means-tested - but believes that it is going to become a political issue.

"Ultimately, what's it going to turn into is 'do I want to pay for somebody who didn't take the opportunity to save for a liability they knew was coming down the road'?"