3:00 PM
Finance Minister Michael Cullen has unveiled the Government's plans for a dedicated superannuation fund.
The Labour-Alliance coalition plans to have the fund, which will be run by an independent board of commercial specialists, up and running by July next year.
In 25 years, it be worth around $50 billion.
Dr Cullen says the proposed fund offers "an important opportunity to introduce stability and security into retirement income.
"We are facing a major change in our demographic structure, the social, economic and fiscal consequences of which will dominate the next 50 years. Doing nothing is not an option," he says.
The fund aims to ensure a blanket eligibility for the pension from the age of 65 without the threat of asset testing, and a 65% wage floor.
The Government has warned other political parties that if they refuse to support the initiative, future pensions will have to be cut, or income and asset testing will be unavoidable.
"It is time we put the backbiting and politicking behind us for the good of the country," says Dr Cullen.
Legislation to establish the fund will be introduced to Parliament before Christmas.
- IRN
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