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Home / Northern Advocate

Super move stupid or smart?

By Craig Cooper
Northern Advocate·
9 Mar, 2017 04:01 PM2 mins to read

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Bill English has asserted himself as leader with some interesting announcements. PHOTO/NZME.

Bill English has asserted himself as leader with some interesting announcements. PHOTO/NZME.

It's not unusual for a new leader to assert themselves, but Bill English has chosen an odd way to stamp his style on the National Party leadership.

Mr English is proposing a rise in the superannuation eligibility age from 65 to 67.

A few months out from a general election, it's not a particularly popular idea, and could potentially cost the National party votes. It could also be a factor in costing them an election.

Although there is some strategy evident, in that it doesn't direct affect baby boomers, who are regular voters.

In fact, it doesn't affect anyone born before June 30, 1972. And it won't come into effect until 2037.

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Why do this? The superannuation scheme costs the country money, and is going to triple in the next 20 years. In other words, the country can't afford it.

Which seems odd given that if there are more people retiring there are also more taxpayers contributing to the Government's funding pot.

Kiwis who have to wait a few extra years may well feel let down by having super pushed another two years beyond their reach.

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Some people rely on super to enable them to retire, and many see it as a "return" on the lifetime of taxes they have paid.

These aren't factors in the Government's accounting equations, but they are realities for many New Zealanders.

Another reality is that some voters won't choose their parties and candidates based on whether they are directly affected.

They will also make their decision based on whether they thought the idea was smart or stupid.

Which ultimately we will find out in September, after the election results are in.

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