INDEPENDENT NEWS

Superannuation Time Bomb Still Ticking

Published: Tue 24 Jul 2001 03:54 PM
United Future leader, Hon Peter Dunne, says the superannuation time bomb is still ticking, despite today's vote in Parliament in favour of the Government's plan to pre-fund a portion of superannuation.
Mr Dunne, who supports the legislation, says it is important the proposal is not oversold and seen as a panacea.
"It is a necessary first step only, which is the sole reason United Future is voting for it."
"However, many problems remain unresolved."
"Among these is the adequacy of the current superannuation payments: 65% of the average wage at 65 years sounds good, but that is only for married couples."
"For single people, the rate is nearer 41%, which is a lot less attractive, yet the issue is an important one."
"With women surviving men by an average of six years, many superannuitants will have to live on the lower rate for a long time, raising questions of adequacy."
"Over the next few years it may well therefore be necessary to look towards increasing the single rate of superannuation to nearer to 50%, which in turn will mean a likely increase in the overall from the current 65% to somewhere nearer 72.5%," Mr Dunne says.
Mr Dunne says pre-funding will not affect this, but it is an issue that future Parliaments will have to face up to, which is why he strongly favours a fresh round of multi-party talks being convened as a priority.
Ends

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