Injured builder backs superannuation age rise
Even after two accidents forced him to retire from his trade, Napier resident Michael Hodgkinson is all for raising the retirement age.
This week the National Party announced, if elected, the superannuation age would rise from 65 to 67 by 2037, after finance spokesperson Paul Goldsmith said New Zealander’s were living ‘‘longer, healthier lives’’. ‘‘When the current retirement age was set at 65 in 2001, a retiree could expect to spend about a fifth of their life receiving superannuation. That has since increased to around a quarter of their life,’’ Goldsmith said.
But experts say by raising the age, vulnerable groups would suffer, including those who work physically demanding jobs to those with health issues.
Hodgkinson falls under both those categories, as he was forced to abandon his love of building at 19 after an accident, spending two years learning how to walk again – forced to retire from his career.
‘‘I was told if I went back to building I would end up back on the surgery table. It turned out the discs in my back were slowly blowing apart. I had a spinal fusion at 21 and was told that I could never go back building again.
‘‘I moved into robotics, which I enjoyed, but realised it really was mind over matter and I had to adapt. I quit my job earlier this year and now I’m back to my trade. Building is my passion, I’m not going to stop and modern technology plays a huge role in the way we do things these days. It’s a lot less physically demanding and risks are lower.
‘‘Instead of being of a set age, the pension should be a reward for all the hard work you’ve done and how much you’ve contributed to New Zealand and the economy, not just something you wait for.’’
The 28 year old is now building ‘‘tiny houses’’ with his first project due to be finished in just four weeks.
Wellington Victoria University student Caitlin Bishop isn’t a fan of the proposed change.
‘‘I just think it’s another way for the Government to sponge off us for two more years. And to be honest at 65, I’m not going to be the sharpest tool in the box,’’ she said.
Otago University’s head of accountancy and finance Doctor Helen Roberts said the extra two-year wait could affect those with low socio-economic status, poor health, didn’t own a home or had physically demanding, low paid jobs.
‘‘If you’re younger and not currently saving for retirement, then it’s going to affect you. It will also affect those who are prone to health conditions, who are not well-skilled in the workforce and would have to find alternative work for those extra two years,’’ Roberts said.
Goldsmith said from the year to June in 2018 the Government spend on superannuation was $13,699 million. The figure continued to rise, with a predicted $14,562m spend throughout 2019.
‘‘New Zealanders are living longer, healthier lives, it’s increasing, so when superannuation was first introduced, people had a short period of life on average, but now its getting larger,’’ Goldsmith said.
‘‘The good news is that we don’t need to do anything too radical – people will have time to prepare for this.’’
Those who were unskilled in the workforce and on lower incomes would have to be ‘‘adaptive’’ if the superannuation age was raised.
‘‘Not everyone does the same thing in their career, older workers are much more reliable and experienced. We have to ensure the economy remains strong so there are plenty of jobs for people.’’
The Interim commissioner for Commission for Financial Capability, Peter Cordtz, said superannuation would always be complex with vulnerability and affordability being key talking points.
‘‘Vulnerability has been identified in groups like Maori and Pacifica, those with disabilities and renters are groups that would be affected.’’