Hon Jim Anderton

Progressive Party leader
Member of Parliament for Wigram
Opposition spokesperson for Agriculture

03 June 2009
Media release

National is already causing super damage

Increasing calls this week for changes to superannuation entitlements shows that national has already caused damage by cutting contributions to the Superannuation Fund, Wigram MP Jim Anderton says.

“The cancellation of contributions to the Super Fund means we will be less able to meet the cost of superannuation in the future. This must mean either cuts to entitlement, increasing the age threshold, or substantial tax increases in the future.

“Already commentators are queuing up to say the age of eligibility will have to increase, or the link to the average wage will be dropped - meaning superannuitants will be poorer relative to other New Zealanders. Others are already calling for a return to some kind of surtax that actually penalises people for saving.

“When New Zealanders hear this, they begin to make changes in their lifestyle immediately, because you cannot change your retirement plans at the last minute. Families don’t know how much more they have to put aside to pay for their retirement. And the political consensus they rely on to make long term decisions begins to erode.

“National has a dreadful track record on superannuation because it doesn’t fundamentally believe in all New Zealanders having access to a secure retirement income at a level that enables retired New Zealanders to a reasonable standard of living.

“New Zealanders have already lost some of their security because of National’s decision to back track on meeting some of the future costs of superannuation.

“Increased chatter about future cuts to super is all the proof that’s needed that the damage is already being done,” Jim Anderton said.

ENDS

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