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Taxes must raise to pay for super - report

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Taxes must raise to pay for super - report

3News NZ

People will be living 30 to 40 years after the age of 65, the report warns

People will be living 30 to 40 years after the age of 65, the report warns

National's under growing pressure to re-think its stance on the retirement age following a report warning of a pending crisis.

The Financial Services Council says Kiwis are living longer and tax rates will need to rise by almost a third later this century to continue funding super at 65.

It says around half those born last year are expected to make it to 100.

Labour leader David Shearer is urging immediate action, saying in just three years the superannuation bill will be bigger than the entire education bill:

Mr Shearer is keen to enter cross-party talks with National on the issue, saying the age of eligibility should go up and Kiwisaver should be compulsory.

Mr Key famously swore he would resign if he broke his promise not to increase the retirement age.

RadioLIVE / 3 News

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Comments

11/06/2012 11:42:18 p.m.

WAKING UP wrote:

THIS IS ALL RUBBISH WHO IS REALLY BEHIND THIS POLICY ? .

11/06/2012 10:23:10 p.m.

Andrew wrote:

They had the formula right during the Holyoake years. Maximum tax take through full employment with comparatively little spent on welfare. Everything else took care of itself. This is where we are at after 40 years of economic decline through political meddling and mismanagement.

11/06/2012 11:41:17 a.m.

James wrote:

You see you dont understand the justification or benefits from such systems ROBO because you obviously must beleave that life is based on the individual and not the whole, our species, the human race! I have grandparents who are more than old enough to retire but they won't cause they beleave in contributing to thier society! Like adults! Its not and will never be what can my country do for me but what you can you do for your country! Its called real life and it aint going away so get used to it. Down with the weak conditioned members of society! Time for adults to fix the BS in our society!

11/06/2012 10:45:42 a.m.

Robo wrote:

Lower benefit costs / benefits, raise the upper income tax take do away with interest free student loans but do not touch the pension age and if anything the pension paid should be higher. Your average working person (approx' a 1/3 of New Zealanders) is already paying for everything else that nobody else pays for but gets benefits from. The least the average tax paying worker should be able to gain is a comfortable retirement without struggle at arespectable age.
The pension could be paid based upon tax paid by each worker over the years with a minimum and maximum limits. I cannot see any justification in welfare beneficiries / abusers, students and higher income earners who pay very little or no tax still being able to get away with what they do - make them pay because your average wage / salary earner is already stretched and should be allowed to look forward to retirement not to have just 1x more thing taken away / moved to accomodate others.

11/06/2012 9:08:38 a.m.

Neil wrote:

Since 1937 we 'oldies' have been paying social security tax at 7.5% off our gross income to provide free doctors, Hospital care and universal Superannuation. What short memories our politicians have!