The Prime Minister must respond to the superannuation warning set to be delivered by Treasury today, says ACT Leader David Seymour.
Top-ranking Treasury officials will present the latest Long-term Fiscal Outlook to select committee at 11:15am today.
“Treasury’s paper doesn’t paint a pretty picture. We need to raise the age of superannuation eligibility to avoid turning into a European or African-style economic basket case,” says Mr Seymour.
“Right now, 15% of the population is over 65. By 2060, when current university students are retiring, 27% will be over 65. The report states that this aging population is a key pressure leading to high debt forecasts.
“If no policy changes are made, by 2060, when current students reach retirement age, government debt will be 206 per cent of GDP. We’ll be worse off than fiscally screwed countries such as Zimbabwe (203 per cent), Greece (179 per cent), and Italy (133 per cent).
“Higher debt equals higher borrowing costs and higher taxes. This burden will be shouldered by today’s young people. Either that, or at some point a future government will pull out the Superannuation rug, making cuts without giving New Zealanders time to prepare.
“The report states clearly: ‘the challenge gets harder the longer we delay’.
“Bill English isn’t tied to a misguided promise like John Key was. He could today announce an intention to raise the age, giving workers time to adjust their savings plans.”