Finance Minister Nicola Willis responds to the OECD's recommendations for NZ Super reforms, stating that changes can be less drastic than proposed, while addressing concerns about pension sustainability and retirement savings.
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I am a fan. I look at someone like myself and the idea that I'm going to be entitled to New Zealand superannuation just seems absolutely nuts. Like if you look at the maps. You know, pretty simple maths, 16% of the population at the moment is currently aged 65 plus, you know, and about 20, 30 years, that proportion is going to move up to 25%. That means more costs in regard to health in regard to New Zealand superannuation and a relatively smaller workforce which forms the tax base. Yeah, so we're on an unsustainable fiscal path. You know, the government needs to bite the bullet in regard to making some pretty big hard bold decisions. We've been talking about this sort of stuff for 30 years. I can remember modelling this sort of stuff in the 1990s when I was at New Zealand Treasury 30 years ago. And all that's happened is that we've kicked the can down the road. Now, a little bit of stuff has been brought in. The New Zealand Super Fund, the KiwiSaver contributions, but when push comes to shelf here, we need to address the entitlement side of New Zealand superannuation, and that comes through, you know, potentially lifting the age or means testing has to come under the equation.
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forward-looking but unproven in practice
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