Calls are being made for a review of the age of entitlement for superannuation in New Zealand as the cost of the pension continues to rise. Infometrics principal economist Brad Olsen has stated that the issue of superannuation has been ignored for too long, and it is time to consider increasing the age of eligibility. Olsen has highlighted the growing costs of superannuation as the population continues to age, and more people become eligible for the pension. Currently, the cost of New Zealand Superannuation is $55.7 billion, and this figure is expected to rise in the coming years. Olsen has stated that New Zealand needs to consider increasing the age of eligibility to reduce the pressure on government spending and ensure that other essential services receive funding.
Retirement Commissioner Jane Wrightson disagrees with this suggestion, stating that any increase in the age of eligibility for superannuation would disadvantage women, Māori, and Pacific people. Wrightson suggests that the current age of eligibility for superannuation should remain the same or that a more complicated system should be considered to reduce the inevitable inequity such a change would bring.
The Organisation for Economic Cooperation and Development (OECD) has also recommended that New Zealand needs to increase the age of eligibility for superannuation to help keep debt levels in check. The ageing population in New Zealand means that the scheme is going to become increasingly expensive.
The debate around superannuation comes in the wake of protests and riots in France over proposed changes to the country’s retirement age. President Emmanuel Macron’s decision to skip a debate in the country’s lower house has led to criticism of the reforms, which would raise the retirement age from 62 to 64. In New Zealand, the retirement age is currently set at 65.
