Dunne calls for superannuation flexibility

New Zealand needs more flexibility around its superannuation entitlements, while Kiwisaver should be compulsory, according to Revenue Minister Peter Dunne.

Colin Williscroft
Thu, 21 Jul 2011

New Zealand needs more flexibility around its superannuation entitlements, while Kiwisaver should be compulsory, according to Revenue Minister Peter Dunne.

Mr Dunne said New Zealanders should be able to access superannuation at reduced rates from the age of 60, or claim it at enhanced rates if they hold off from accessing it between the ages of 66 and 70.

“Kiwis would then be able to retirement age and lifestyle – choices they currently do not have – and it would be cost neutral with the current scheme,” Mr Dunne said in launching the UnitedFuture Party's superannuation policy.

The long term sustainability of superannuation could be addressed if KiwiSaver was made compulsory, he said.

“The sustainability arguments around superannuation, and whether it should be 65 or 67, then become redundant.

“People can then do their own maths and work out what works best for them based on their lifestyle and aspirations.”

He said based on current superannuation levels, a couple who get $522 a week today when they turn 65 could choose to wait to age 70 and get $840 a week.

Equally, if they instead chose to wait just two years and get super at 67, they would get $630 a week.

“If they decide to retire earlier than 65, then they would receive a lesser amount for each year until the age of 60.

“Similarly, a single person could still collect the current $339 per week, or on today’s figures get $410 if they waited to 67 or $546 at 70.”

Mr Dunne said the Treasury had budgeted for superannuation to cost the country $8,833,000,000 in 2011.

That was projected to increase to $15,979,000,000 by 2020 and $29,652,000,000 by 2030.

Colin Williscroft
Thu, 21 Jul 2011

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Dunne calls for superannuation flexibility