Super comments ‘over the top’

Thursday September 28, 2017 Published in Letters to the Editor

The comments in CINews this week in relation to the “huge money at stake in ‘super’ issue” are over the top.

 

If it is the intention of the New Zealand government to deduct dollar-for-dollar from their pension scheme, then good on them.

Let’s get real about the situation: Governments with social welfare systems that pay out pensions to eligible senior citizens are finding it a huge financial commitment on the government accounts.

It means there are more baby-boomers (read “senior citizens”) than persons (read “Gen X” and “Gen Y”), to pay for the universal pensions.

In order to limit the financial burden somewhat, restrictions are being progressively. Look, for example at the raising the age of eligibility as in Australia. It is being lifted to 67 years of age for those born after a certain date.

Another restriction is that persons with personal incomes over a certain sum are no longer eligible at all, because they are seen as having “independent means” and should not expect to double dip into the government funds.

Another example from Australia is that for the past 20 years or more it has been compulsory that all workers contribute to a superannuation fund (now at 9 per cent of their annual income). The aim is that on maturity, the annual income from the personal super will mean the recipients are self-sufficient and will not rely on the public coffers.

Presumably, those whose personal superannuation is below the threshold (in Australia), will have their superannuation funds topped up by the government pensions.

In the case of New Zealand, they insist that persons must have lived there for X number of years plus five years after the age of 50 in order to qualify for the pension.

People must start planning their retirement with these realities in mind.

            Much Ado About Nothing

            (Name and address supplied)

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