Key changes to pension suggested

PRIME Minister Richard Seddon was the first in the world (in 1896) to introduce a limited pension for the ‘‘deserving’’ poor. In the 1930s the first Labour government extended the worth of the pension with no means test. The pension, according to John A. Lee, the intellectual force of the Labour Party (192240), was a ‘‘gift’’ and not a right and should differ year by year according to the State’s ability to pay. Roger Douglas in 1975 established a contribution superannuation fund that should have continued to this day, being the fairest system possible. But Robert Muldoon axed Douglas’ fund when he took power in late 1975, having promised the electorate (a bribe) a pension at only 60.

Demographics have been changing since World War 2. The long peace (as far as world wars goes) has seen the advance of scientific progress. People now live longer (often to very little, if any, purpose). There is a curious situation happening where these 90100yearolds, especially the women, are actually, cumulatively, receiving more in super than they ever paid in taxes over their lives. Two things emerge. Firstly, there has to be a means test whereby, for example, millionaires do not receive superannuation. Also, the manual worker has to be treated as a special case. Physically demanding work often leads to ill health and fitness around 60 years of age. According to the laws of physics, work is the expenditure of energy — and those working hard will break down, on the whole, well before 67.

Michael Bolwell Oamaru