By Duncan Garner
Former National Party leader Don Brash is urging the man who replaced him, Prime Minister John Key, to signal changes to national superannuation and the retirement age.
But Mr Key is refusing to take the bait because he has promised not to change the rules, or he will resign as Prime Minister.
All Kiwis receive national superannuation at aged 65, no matter how rich or poor you are; a married couple, from October, gets $511.
But Don Brash says 65 is too young and more flexibility is needed; take a bigger pension at an older age or retire at 65 and get a smaller pension for a longer time.
“If we're going to raise the age of eligibility when people get super, let’s make it more attractive and flexible about when they draw that down, Dr Brash says.
Dr Brash says it's a natural first step towards a bigger change – increasing the age when Kiwis should become eligible for New Zealand super - to cut the ballooning costs.
“Over the next decade it's likely we will have to raise the age at which people can be eligible for it,” he says.
But the National Government disagrees and is refusing to debate the idea – all because of John Key's pre-election promise not to change any of the entitlements and payments of New Zealand super – if he does, he will resign.
“We're happy with way it's working,” he says. “It's an elegant system… works well.”
Dr Brash, of course, is unimpressed by that – he says Mr Key should signal changes now.
“That's what I would hope he would do; as the Australians have done..."
Even the Government's own economic advisors were today advocating for changes at a retirement conference – advice that will, of course, fall on Mr Key's deaf ears.
Treasury says 13 percent of government spending currently goes on the cost of national superannuation – it will be 22 percent by 2050.
Right now there are two people over 65 for every 10 workers; in 50 years it will be four people.
Still, Mr Key won't debate it.
“They also say we should get rid of zero percent student loans and working for families which this Government won't be doing either.”
Australia, the UK and the US have all raised their retirement ages to 67 and over.
But it's not a debate the Government can have – because of Mr Key's promise to resign if changes are made – but the pressure will only continue to build.
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