We value a superannuation scheme that looks after those who need it, but also one that caters to individual circumstances. We want to get young Kiwis saving for their retirement, so that when they decide to stop working they can do so comfortably. We want to give people freedom and flexibility in their retirement, and a choice about when they retire and how they do so. For many people 65 is too early, for others, it’s too late, we believe you should have the choice.
FlexiSuper aims to provide dignity and certainty for those in retirement. Today, as the pattern of people’s lives are changing dramatically, current arrangements for Superannuation from the age of 65 do not suit everybody’s needs. Flexi-super rethinks the way superannuation is approached in New Zealand.
- FlexiSuper is an innovative policy aimed at recalibrating superannuation in New Zealand.
- FlexiSuper gives people the option of choosing to receive their superannuation at reduced rates from age 60-64, or at higher rate if they delay it until ages 66-70.
Introduce compulsory Kiwisaver
- Compulsory Kiwisaver will increase the saving rate of young New Zealanders, deepen the investment pool and give future generations financial security and certainty in retirement.
Ensure superannuation is fair
- Change how superannuation is calculated, by basing it upon forecast changes to the consumer price index and forecast increases in the average wage for the following 12 months. The current formulation is retrospective, creating a lag that cheats our over 65s of their full entitlement. Any unforeseen changes to inflation or wages will be adjusted each April, always in favour of superannuants.
- Fix Section 70 of the Social Security Act to ensure that overseas pensions that are based on either a compulsory individual contribution or are a form of national insurance scheme (or a combination of both and are deemed to be equivalent to a national pension), should be exempted from the requirements of Section 70 and therefore should be paid in full to the recipient without impacting on the entitlement to New Zealand Superannuation.