Media Release 23/10/08
Good News, Bad News And Worse News!
The bad news is that New Zealand's CPI increase to the end of the September 2008 quarter is 5.1 percent, the highest increase since
the June 1990 quarter. The main drivers are the cost of petrol up 29.3%, grocery food up 12.0% and electricity up 6.9%.
The good news is that these dramatic increases are expected to have corrected by the end of the year. For most New Zealanders that is
good news.
For Superannuitants that might not be such good news. Why?
The worse news is that Superannuation is adjusted by the CPI increase at the end of the December quarter. If there is a dramatic
correction in the December quarter, say to 3.1%, then that is the amount of increase Superannuitants could expect in
April 2009. (Assuming no change in the Average Wage factor)
The problem is that older New Zealanders will have struggled to exist throughout the year and then get to "enjoy" only a
minor increase in Superannuation next April!
This is why Grey Power is calling for a review of the way the CPI is used to determine the superannuation entitlement and to have
superannuation set by an independent commission.
Ian S Anderson
Grey Power NZ Federation Inc
Chair, Superannuation & Taxation Committee
ENDS