Dealing with tough financial times ahead
A survey found a third of over-65 year olds can’t retire because they have to continue working for financial reasons. Do we need to increase the money paid in Superannuation so more Kiwis can enjoy their golden years, free of financial worry? An MP from each side of the House gives their views.
Our Government is committed to lifting incomes and easing the pressure on New Zealanders. Since taking office we have consistently delivered on this commitment, making changes that have helped to put money back into the pockets of those who need it.
Just this month we implemented a suite of changes that saw the majority of Kiwi families better off. This cost-of-living package delivered income increases to more than 1.4 million people – with about 855,000 superannuitants seeing their income lift by $52 a fortnight for a single person and $80 for a couple.
Superannuitants will see a further lift once our Winter Energy Payment starts again next month, to help with heating costs over the colder months.
However, theres’ no doubt that we are in a tough period. The entire world is dealing with high inflation as a result of Covid, supply chain issues, and the invasion of Ukraine.
And even though we can’t control what happens overseas, we can step in to help Kiwis get through. Following the global petrol price spike caused by the war in Ukraine, we moved quickly to cut fuel excise by 25c a litre and introducing halfprice public transport for three months.
We know this won’t solve everything, but if we can reduce this cost for Kiwis, then right now we should do that – and we are.
These measures sit alongside a range of other programmes designed to ease the pressure on older New Zealanders, such as cheaper doctors’ visits for Community Services Card-holders, as well as the work we have done to lift incomes for people before they retire, such as steadily increasing the minimum wage and passing equal pay legislation.
There is more to do but our changes are already making a real difference for superannuitants and families.
It is also important to our Government thatwe give people confidence that Superannuation will always be there when they need it.
That’s why we have committed to keeping the age of eligibility of Superannuation at 65. In fact, the Prime Minister has gone as far as to say she would resign before raising the age.
It’s also why we resumed contributions to the New Zealand Super Fund, which were suspended under the previous National-led Government, to ensure the sustainability of Superannuation and the current retirement age.
Because, unlike the National Party, we believe that’s what hard-working Kiwis deserve.
The facts are stark. Rents are up, household power prices are set to increase, inflation is at an all-time high and the average house price is up by $400,000. We have a cost-of-living crisis in New Zealand and it is hurting everyone: all Kiwis are worse off now than they were 12 months ago.
Sadly, New Zealand’s seniors are not immune to the virus of inflation that has been stoked along by poor government spending and a failure to manage the economy. We need to limit spending on government pet projects such as the Te Huia train, which has cost $100 million and has a subsidy of $282 per passenger per trip, or $50 million for ‘‘design work’’ on a cancelled cycle bridge in Auckland.
During the past quarter, domestic inflation grew faster here than it did in other developed countries similar to us. Most of the country’s leading economists have warned of the significance of homegrown factors in our inflation and that high inflation is likely to be more long-lasting than originally thought.
The cost of household energy prices are set to increase, for some it will be up to $1000 a year according to Consumer New Zealand. How can we expect our seniors to pay for such increases, while the Government sits on its hands and allows the cost of living crisis to walk all over Kiwis.
On top of that, one-in-fiveNew Zealanders over the age of 65 who is renting has seen average weekly rents increase by $150 under Labour, which will hit our most vulnerable superannuitants the hardest.
Our seniors, by and large, have paid taxes all their lives. They have contributed to this country in oneway or another, and they deserve to spend their retirement comfortably and in a financially stable way. However, that simply cannot happen when you have a financeminister who is addicted to spending.
National has pushed the Government to allow Kiwis to keep more of what they earn through a long-overdue adjustment to the tax brackets to compensate for inflation.
Because NZ Superannuation is indexed to the average after-taxwage, superannuitants would also benefit heavily from this tax adjustment. The couple rate would increase by about $520 a year.
No one will get rich from these changes but they willmake things a little easier for Kiwis struggling with the rapidly rising cost of living. This tax bracket adjustment will in turn help our seniors to achieve some sense of financial stability in what is an incredibly uncertain time.
Most of our seniors have worked hard all their lives, the last thing the Government should give them is anxiety about whether or not they can afford the basics.