Government to raise the age of superannuation
Kiwis looking to retire in the near future might have to wait an extra couple of years before they can pull the ripcord, with the Government announcing its intention to raise the age of superannuation entitlement from 65 to 67.
The changes, with will be rolled in form the 1 July 2037, will not affect anyone born before 30 June 1972, and are expected to save the Government $4 billion annually.
Prime Minister Bill English said, “New Zealanders are healthier and living longer so adjusting the long-term settings of NZ Super while there is time for people to adapt is the right thing to do.
Finance Minister Steven Joyce elaborated on this saying, “greater life expectancy is course positive but it does drive up the cost of NZ Super. While New Zealand has a more affordable scheme than most countries, the increasing costs would require future trade-offs - either restricting spending increases in areas like health and education, or increasing taxes.”
The PM said the government is announcing the changes now, so the political parties “can debate superannuation transparently in the lead-up to the election”.
What’s your view? Do you think it’s the right call?
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