Shane Jones.
Photo: RNZ / Samuel Rillstone
The political football of superannuation got a decent kicking in the Budget lock-up on Thursday with the Finance Minister warning any party that ignores the size of the problem is doing so for its own benefit.
Her comments were a clear dig at her coalition partner New Zealand First and chief opposition party, Labour, both of which are clear they won’t make changes.
The annual cost of superannuation will rise to more than $30 billion by 2030 – up from less than $20b in 2023.
That problem also costs more in the healthcare sector and other public services.
Speaking to the issue in the Budget lock-up, Nicola Willis said she wanted to “dwell on it” given the size of the problem.
“This is not a tomorrow problem, it’s for today,” she said.
“People often talk about the rising super bill as if it’s something in the future. It’s happening right now.”
“I believe….in the absence of doing anything about our settings for the future, we will be committing a huge act against inter-generational equity.
Photo: RNZ / Samuel Rillstone
While Willis made it clear no changes were being made to the pension this parliamentary term, she said there was no option but to address it.
Governments who put this off forever will end up taxing young people more, and then ultimately give them less when they retire, she said.
“Parties who say they won’t do anything about it are prepared to rob everyone in this country under the age of 50 for their own political expediency.
“I reject that approach,” she said.
National’s policy on superannuation is yet to be revealed for the November election, but in 2023 it campaigned on raising the age of entitlement to 67 by 2040.
New Zealand First – National’s coalition partner – is firmly against any changes.
Photo: RNZ / Samuel Rillstone
Asked in the Budget lock-up what he made of Willis’ rhetoric, New Zealand First deputy leader and associate finance minister Shane Jones said that was a question best answered by his leader Winston Peters.
He added, “I think you’ll hear lots of observations from us when we get closer to the election.”
Deputy prime minister and Act leader David Seymour said the government doesn’t have a policy to “change the framework of superannuation”.
“However, I think it’s pretty clear to anyone who is reading the numbers that things have to change and the longer you deny that reality the harder the change is going to be
Seymour said his party has been upfront and honest about it, “probably to our political cost for a long time”.
“The winds of change are blowing and the only question is, is everyone going to face them or continue to deny them?”
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