ACT New Zealand Welfare Spokesman Sir Roger Douglas today accused Prime Minister John Key of emotionally blackmailing his colleagues to ignore much-needed superannuation reform by threatening to resign should any changes be made to superannuation eligibility. 

“Since superannuation was first introduced in its current form, life expectancy of those who receive superannuation has increased 40 percent, while the age of entitlement has only increased 8.3 percent – this is clearly unsustainable,” Sir Roger said.

“It’s obvious that eligibility will need to change if we stick with the current system.  The demographics show a decreasing number of workers to every superannuitant, from 4.5 today, to 2.2 in 2036.   In other words, it will cost the average worker twice as much to fund other people’s retirement.

“The public is aware of this and knows that these changes are inevitable.  What New Zealanders don’t realise is that moving the age of eligibility will not solve the problem and in 15 years we will be talking about moving the eligibility age again from 67 to 70.

“If we move from a ‘pay-as-you-go system’ and encourage people to save for their own retirement, New Zealanders will be able to retire with more in the bank and stop politicians interfering in their lives. 

“Under ACT’s policy, each person would save the amount that they are currently taxed to pay for superannuation - and the average person would retire with over $1 million in the bank, at conservative interest rates of just four percent.

“We need an open and honest debate over the future of superannuation.  That can only start with a Prime Minister who is willing to engage with ideas like those outlined above.  Over the coming months it is my intention to make public a detailed policy in this area,” Sir Roger said.