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Thursday, August 29, 2013
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THE INDEPENDENT VOICE OF MID CANTERBURY
Pension proposal a ‘good idea’ BY SUE NEWMAN
SUE.N@THEGUARDIAN.CO.NZ
New Zealand superannuation has been the financial backstop for retired Kiwis for more than 100 years. While it has undergone many changes, in its current form it dates back to 1977 and is intended to assure older New Zealand residents of a basic standard of living. How that super is paid is now out for public debate and scrutiny, and the proposed changes have been given the nod by Ashburton accountant Brendon Adam. The proposal is to give people the option of taking super at the current level at 65, at a level that reduced by 6 per cent a year down to the age of 60 or increased at 10 per cent a year between 65 and 70. Any proposal that allowed older people to choose when they hooked into super was well worth some healthy debate, he said. “It’s a good idea, particularly for those people who may have
health problems or a shorter life expectancy and who need to retire early.” For that to be fair and equitable, however, Mr Adam said income means testing should be part of the sign-on regime for people aged between 60 and 65 to stop people double dipping continuing to work and putting their super cash in the bank. He also supports the option of signing on at any time between 65 and 70 in exchange for a higher weekly super pay cheque. “While you don’t need it to live on it makes good financial sense to give yourself a better standard of living when you do retire,” he said. Mr Adam said his understanding of the proposal was that anyone signing up for super after 65 would not be committed to working until the age of 70, but could choose to sign on at any stage.
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