The current Superannuation scheme is unsustainable. The longer the delay in taking measures to restore the long-term affordability of super the worse the problem will become.
According to Statistics NZ, up to 24 percent of New Zealanders will be receiving superannuation by 2036, compared to only 14 percent in 2012. The Government currently spends 12.9 billion a year on superannuation, or around 16% of all expenditure. With an ageing population, this cost will hugely increase.
ACT believes this increasing cost will be unaffordable, with no matching revenue increase to fund it.
Advocated for raising the retirement age since 2011. We are the only party with a policy to bring down the cost of superannuation for future generations of taxpayers.
- Raise the retirement age. Starting in 2020 we will raise the age of entitlement to Super from 65 to 67, at a rate of two months per year, finishing in 2032.