Why we should dump the Super Fund, according to a researcher

The superannuation fund is a complete and utter waste of time, says a researcher. Photo: 123rf.com

Opinion

The superannuation fund is a complete and utter waste of time, says a superannuation researcher.

Michael Littlewood is commenting on Labour's plan to restart government contributions to the fund if elected, adding more than $7.5 billion to the fund by 2022.

He feels the Government should pay pensions as we go, like other OECD countries.

Mr Littlewood told Larry Williams the pay-as-you-go method which we used until the fund started, is the best way of paying for public pensions.

Listen: Superannuation researcher Micheal Littlewood speaks to Newstalk ZB's Larry Williams on Mike Hosking Breakfast

"OECD countries today pay more than we are expecting to pay in 40 years time. So if the OECD countries don't have a financial crisis today, why are we concerned about the financial crisis that might happen in 40 years time."

Mr Littlewood said the Super Fund raises New Zealand's investment risk.

"It doesn't achieve its objective and instead of having 35, or whatever it is now, billion dollars on the financial asset side of our balance sheet, we should sell the assets and repay debt."