Anderton questions role of Retirement Commissioner

Jim Anderton

Progressive Party leader Jim Anderton is questioning the point of having a Retirement Commissioner after Diana Crossan suggested the minimum age of eligibility could be raised.

Ms Crossan on Monday released the commission's 2007 assessment of government retirement income policies. She said raising the pension age for superannuation from 65 to 66 or 67 could be an option to cope with costs associated with the ageing population and the issue needed to be debated.

Other suggestions included raising taxes, increasing the residency qualification period, and reducing the amount paid to superannuitants.

The report welcomed KiwiSaver but said added incentives made it more complex.

It said KiwiSaver would need continued monitoring and forecasting to check no groups were missing out on access to the savings scheme. It will also be important to assess the long-term costs to the nation.

National and Labour quickly ruled out changing superannuation entitlements.

In a statement titled "is it time for the Retirement Commission to be retired?" Mr Anderton said he was flatly opposed to raising the age of retirement saying it would punish New Zealanders for growing old.

Mr Anderton said in the early nineties Treasury wanted to up the age to 72 - the average life expectancy of men, meaning most would never get any super.

He said the commission was set up to provide certainty around super and help prepare for the future. "It doesn't help to do either when the commissioner publicly muses about raising the retirement age."

He said NZ Super Fund and KiwiSaver would help with future demands but there may need to be sacrifices elsewhere.

Ms Crossan said the role of the commission was broader than Mr Anderton appeared to know. It did financial education for New Zealanders. "Does he mean getting rid of that role as well?"

The commission also ran the popular independent finance advice website Sorted.

"It's a bit of a surprise to me that comment."

Ms Crossan said Mr Anderton talked about a retirement age when the age of eligibility for super was what was being discussed.

He says KiwiSaver will help. "Does that mean people who aren't able to and can't afford KiwiSaver are going to miss out on super or are we going to means test it? I don't know how KiwiSaver helps with super."

She said she was not suggesting raising the age of entitlement as the only solution.

- NZPA