Jane Wrightson, Retirement Commissioner
On Monday night we joined the members of Auckland East and were treated to a comprehensive presentation from the Retirement Commissioner of Te Ara Ahunga Ora Retirement Commission. She emphasised that the work of the Commission is focused on retirement with confidence and making ends meet; and not on any health sector issues (which are the responsibility of others).
 
Jane spoke of the financial issues affecting the ability of New Zealand to afford the current system with the proportion of retirement age reaching  25% by 2056; and that for 40% of that group the sole income is universal super. Other changes including lower levels of people owning their own home and increasing numbers having any wealth they have, tied up in their home. This means that as rental costs rise seniors without adequate independent means now would be severely impacted within 20 years. Pension payments are simply not enough to live on especially for those who are renting, and in the current climate laddered investment will not cut it. 
 
For the younger earner there is generally not adequate income for any regular saving, the cost of housing relative to income is rising and the average now in Kiwisaver is only $25,000. For this group the future also looks potentially difficult . 
 
Given the willingness of some to question how NZ can continue to afford a universal superannuation scheme Jane asked what kind of society do we want?  Any means testing could lead to avoidance  and as raised in parliament by e Pāti Māori there are issues around the life expectancy rates of Maori and Pasifica peoples. 
 
Any suggestion of change raises questions including whether change is necessary, whether the change is people centred, whether plans for change take into account the need to allow a long lead in time so people can plan well ahead,  whether the diversity of population now or anticipated is taken into account, all Treaty of Waitangi obligations, and the need for simplicity. 
 
Jane answered questions on the percentage for whom universal super is all their income (40%); staffing numbers; and loss of equity in retirement village contracts. 
 
Those looking for information on financial capability are encouraged to access www.sorted.org.nz for basic training and independent information.